All Forum Posts by: Doug R.

Hi All,

Anyone knowledgeable in Puerto Rico real estate law know if submetering or RUBS is allowed?  I'm looking at an apartment complex that has ridiculous utility bills - each 1 bedroom / studio equivalent is on average generating a $100 light and $175 water bill; utilities are currently included in the ~$350 rent so that leaves very little income left after utilities. 

The building is old (built in 1920); so I'm wondering if there could be some serious piping problems.  

I'd be interested.

I sell physical products online though Amazon, eBay, etc.

Ya I'm in Rincon

I sell physical products online though Amazon, eBay, etc.

Ya I'm in Rincon

I've lived in PR for about a year now and have act 22 and have almost received act 20 (was waiting for updated employee requirement legislation).  

My Act 20 business is ecommerce.  

You aren't going to be getting taxes 4% on rental income - that's not an exportable service.  That's considered passive income.  What you could do is manage the US properties from Puerto Rico and claim some kind of management service fee (but it should be market based).  So the majority of your income would be rental income (non-eligible) and taxed at US rates, and the work that's done in PR (management) would be taxed at the preferential rate.  

Most of the companies helping with act 20 (accounting firms / lawyers) will give free consultations, but watch out, most want to charge lots of money to actually do the application (I paid $7000 for advice and 12500 for setting up the corp / doing the application) which most of it was a waste).

@Peter Hoeck My attorney charged my 12,000 to set up an llc and a get the act 20 decree but I wouldn't recommend them.  PM me and maybe I can help you apply yourself for the grant (I've been talking to the guys over at the OITE for over a year).

@Evan Miller do you know which town your coworker's vacation home is?

Watch out on the student rentals bc the uni is facing a proposed 30% budget cut (not evident how it will affect matriculation rates)

I live in PR and have been looking for vacation rentals. You can find a lot of houses that are very cheap especially compared to US standards but one of the big issues is there isn't much demand in places like Isabela (taken from airdna report) and a lot of supply (lots of Puerto Rican's putting to their house on airbnb)

Was that 20k to set up an act 20 company? Bc that seems a little bit above market. To set up a normal LLC will cost a few hundred bucks