If you are considering relocating to the Puerto Rico real estate market under Act 60, the first step of your journey is understanding how Puerto Rico’s tax incentives benefit your business. Part two of the equation is actually relocating to your new home—whether it’s one of the Puerto Rico luxury homes in the Dorado Beach real estate market or a Puerto Rico rental in Condado—as well as maintaining your business operations and solving for any family concerns.
Doing and conducting business comes with some administrative hurdles, but nothing out of the ordinary. And in terms of lifestyle and day-to-day living, a few manageable challenges await. But if you are the type of person considering Act 60, you will be just fine.
Living in Puerto Rico
Cost of Living
The cost of living in Puerto Rico is comparable to living in the U.S. cities of Orlando or Austin. It is about 15%–30% cheaper than Miami or Seattle, and up to 40% cheaper than major cities such as Washington, D.C., or New York City, according to the Council of Community and Economic Research. You can expect items like vehicles, electricity, and imported gods to be more expensive than in the United States and items like local foods, property taxes, transportation, and health care to be cheaper.
The Puerto Rico real estate market has a wide range of housing options available for different budgets and tastes. You can find anything from beachfront Puerto Rico luxury rentals in Condado, to gated family communities in Dorado, to a bohemian atmosphere in Ocean Park, to a classic European style in Old San Juan. The Dorado Beach real estate market is the leader in Puerto Rico luxury homes. There is something for everyone, whether you decide to stay in San Juan metro or head for one of the other coasts.
Rent, on average, is about $1,500 a month for a 2 bedroom / 2 bath in popular areas for Puerto Rico rentals. You may encounter high volatility in pricing in Puerto Rico rentals, even Puerto Rico luxury rentals, due to erratic supply and demand caused by hurricanes, the current market, and low availability of renovated units. For those planning to purchase a Puerto Rico luxury home, housing prices in popular areas are comparable to those in many U.S. cities, while taxes and insurance are lower. No matter your budget, the Puerto Rico real estate market has plenty of options right for you.
There are numerous public and private schools that offer a high-quality education for grade school (K-12) and higher education learning. Many private schools on the island boast high acceptance rates to top-rated U.S. universities and are within close proximity to some of the hottest markets in Puerto Rico real estate, including Dorado Beach real estate.
Puerto Rico features over 100 institutions of higher learning, including universities, colleges, community colleges, and technical institutes. The largest public university in Puerto Rico is the multi-campus University of Puerto Rico. More than 35,000 university degrees are granted each year, with more than 12,000 in the sciences, mathematics, and technology fields as well as business administration.
Crime rates in Puerto Rico are comparable to those in other major U.S. cities. It is advised to exercise common-sense precautions that would be followed in any major city to avoid problems. Most Puerto Rico luxury rentals are in gated condo buildings with 24-hour security, and nearly all Puerto Rico luxury homes are privately gated or in gated communities, such as in the Dorado Beach real estate market, which boasts extensive 24-hour security.
The electrical grid is notoriously underdeveloped, but many residences and businesses are prepared for the possibility of power outages with backup generators. Backup generators are standard in both Puerto Rico luxury homes and Puerto Rico luxury rentals and are increasingly common in the broader Puerto Rico rental and Puerto Rico real estate markets.
Water and wastewater systems meet the same standards in the mainland United States as dictated by the Environmental Protection Agency. Water can be consumed from the tap in all cities in the Puerto Rico real estate market.
Getting to and from the island is easy, with hundreds of direct flights to many U.S. or Canadian cities on a daily basis, including places as far as Montreal, New York, and Houston, via San Juan International Airport (SJU). There are two additional passenger airports that service other parts of the island.
Primary roads are comparable to those in the U.S. mainland. Public transportation is available, and rideshare services, such as Uber, are also popular.
If you buy Dorado Beach real estate, the community is about 40 minutes from San Juan International Airport (SJU). Puerto Rico luxury rentals in Condado are about 20 minutes away from SJU, while more traditional Puerto Rico luxury real estate in Old San Juan are 25 minutes away from the airport.
You can expect U.S. standards in terms of medical facilities and physicians.
When searching for a local health insurance provider, you will find that premiums are usually cheaper than in the United States. Check with your mainland and future PR provider to confirm that the coverage is suitable.
Resource: Triple-S Salud (the largest provider in Puerto Rico)
You can expect mainland U.S. banking standards, products, and protections offered by local and international banks, including FDIC protection up to $250K. Banco Popular is the most popular for personal and business banking.
Resource: Banco Popular
Most U.S. carriers work normally in Puerto Rico without additional fees. Depending on where you live and work in the Puerto Rico real estate market, you may decide to switch carriers to improve service.
Puerto Rico has the necessary infrastructure for VoIP and broadband data connectivity to supply industry needs in landline service, wireless service, and Ethernet. Puerto Rico is connected to the mainland United States through the Puerto Rico undersea fiber-optic cable of the Americas Region Caribbean Optical-Ring System. This connectivity provides broadband accessibility for Internet access, meaning Puerto Rico luxury homes and offices can easily be wired for optimal connectivity.
The United States Postal Service is the national mail carrier.
We saved the best for last. The climate of Puerto Rico is predominately that of a tropical rainforest. Temperatures throughout the year are warm to hot, averaging between 70 and 85 degrees Fahrenheit. The rainy season stretches from April into November, which includes the Atlantic hurricane season.
Resource: Puerto Rico annual weather averages