Taxes will a property over seas qualify ?

Question

my parents wish for me to buy a home in Puerto Rico as an investment property

will I get the same same tax benefits as in the United States  ?

Rafael Trinidad · Answer

Thanks you

Aaron T. · Answer

you have many options, but do the research on what you plan on doing. are you planing on doing ACT 60 (the new ACT 20 and 22)? ensure you understand the rules. also understand any income laws in PR, plus any additional tax filing considerations. PR is not the easy button, everything down there is 10x more difficult than in the states.

Rafael Trinidad · Answer

Thank you

Nat C. · Answer

@Rafael Trinidad

Puerto Rica is part of the US, so to answer your question; yes of course you will get the same tax benefits.

Also, to quote from investopedia-

“In 2012, Puerto Rico passed legislation shielding new residents from paying most federal income taxes. Since then, the island is swiftly emerging as a hot new tax haven for Americans. If you reside on the island for a minimum of 183 days annually and meet other qualifying criteria, you may pay minimal, if any, taxes on interest, dividends and capital gains under the “Act 22” tax law. These tax incentives are attracting more U.S. citizens and plenty of new, luxury developments that could pave the way for good capital growth conditions looking ahead.”