Law 60 offers tax incentives to attract investment to Puerto Rico. One of the key benefits of Law 60 is its real estate tax benefits.
Individual Investor Benefits
Individual investors in Puerto Rico are eligible for the following real estate tax benefits.
- 100% exemption from Puerto Rico income taxes on interest and dividend income
- 100% exemption from Puerto Rico capital gains taxes on the sale of certain qualified assets, including real estate
These tax benefits can be significant for investors who are considering buying or selling real estate in Puerto Rico. For example, an investor who purchases a $1 million investment property in Puerto Rico and sells it for a $200,000 profit would typically owe a capital gains tax of $40,000 (assuming a 20% tax rate). However, under Law 60, the investor would be exempt from paying any capital gains tax on the sale.
Business Investor Benefits
Business investors in Puerto Rico get real estate tax benefits., including:
- 100% exemption from Puerto Rico income taxes on interest and dividend income
- 50% exemption from municipal property taxes
- 75%-100% exemption from state property taxes (depending on the size of the business)
These tax benefits can make Puerto Rico a very attractive location for businesses that are looking to invest in real estate.
How to Qualify for Law 60 Benefits
To qualify for Law 60 benefits, individual investors must become bona fide residents of Puerto Rico. Therefore, they must spend at least 183 days per year in Puerto Rico and establish their domicile on the island. Business investors must establish or relocate businesses to Puerto Rico and create jobs on the island.
Conclusion
Law 60 offers a variety of real estate tax benefits for both individual and business investors. These tax benefits can make Puerto Rico a very attractive location for investors who are looking to buy, sell, or invest in real estate.
If you are considering buying, selling, or investing in real estate in Puerto Rico, or if you are a business owner who is considering relocating your business to the island, I encourage you to contact me today to learn more about the real estate tax benefits that may be available to you under Law 60.
