About Puerto Rico
Life, communities and incentives on the island — your guide to living and investing in Puerto Rico.
With Equally Distinctive and Attractive Tax Incentives
Puerto Rico offers something increasingly rare: the turquoise coastlines and warm climate of the Caribbean, combined with the stability of the U.S. legal, banking and currency system. For families, investors and global citizens, the island has become one of the most compelling places to live, invest and build a second — or primary — home.
At Luxury Collection Real Estate, we help buyers navigate every step, from choosing the right community to closing on the right property. This guide covers the essential facts about Puerto Rico, its tax incentives, and the communities where our clients most often choose to live.
Puerto Rico at a Glance
Puerto Rico is a United States jurisdiction in the Caribbean that has been historically known as an economic and social bridge between the nations of the Western Hemisphere. San Juan is the capital city.
Geography & People
- With an area of approximately 3,500 square miles, Puerto Rico is the third-largest island in the United States (after Hawaii Island, Hawaii, and Kodiak Island, Alaska) and the 82nd-largest island in the world.
- An estimated population of 3.2 million people.
- San Juan, the capital, offers direct flights to major U.S. mainland cities.
Citizenship, Travel & Currency
- On March 2, 1917, President Woodrow Wilson signed the Jones-Shafroth Act, granting U.S. citizenship to Puerto Ricans.
- U.S. citizens travel domestically between Puerto Rico and the U.S. mainland — no passport required.
- Puerto Rico’s official and only currency is the U.S. dollar.
Legal & Financial Framework
- All U.S. banking regulations and FDIC protections apply on the island of Puerto Rico.
- The jurisdiction is under the U.S. federal court system and laws; U.S. federal law, its framework and its protections apply.
- Due to its fiscal autonomy, the local government offers tax incentives not available on the U.S. mainland or in other states and territories.
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Puerto Rico Tax Incentives
The Puerto Rican government has legislated an impressive array of incentives to attract investment, consolidated under Act 60, the Puerto Rico Incentives Code. Its best-known program, for Resident Individual Investors, offers preferential tax rates on qualifying investment income to individuals who become bona fide residents of the island.
In 2026, Act 38-2026 extended the program through December 31, 2055 — giving new residents long-term certainty when planning their move.
Tax incentives are subject to eligibility requirements and change over time. Luxury Collection Real Estate does not provide tax or legal advice; consult a qualified Puerto Rico tax attorney or CPA before making decisions.
Long-term horizon
The program now runs through 2055, and existing decrees remain valid.
Competitive rates
For applications filed on or after January 1, 2027, qualifying interest, dividends and post-residency capital gains are taxed at a preferential 4% rate.
Real estate is part of the plan
Grantees must purchase a primary residence in Puerto Rico from an unrelated party, owned directly or through a trust.
Beyond individuals
Act 60 also offers incentives for export services, manufacturing, tourism, green energy and other industries.
Our Communities
From historic cobblestone streets to beachfront resort living, Puerto Rico offers a remarkable range of luxury lifestyles within a short drive of San Juan. These are the communities where our clients most often choose to live.
Dorado
Dorado is renowned for its beaches — including Dorado Beach — and for its golf, with two championship courses at Dorado Beach, a Ritz-Carlton Reserve, which has hosted numerous professional tournaments. It is one of the most sought-after destinations for luxury buyers relocating to Puerto Rico.
Bahia Beach
A 483-acre beachfront resort community featuring the Four Seasons Resort Puerto Rico (formerly the St. Regis Bahia Beach), a championship golf course and a tennis center. Villas, townhouses, custom homes and condominiums offer ocean, golf and lake views, with a private clubhouse, spa, beach club, concierge and 24-hour security. El Yunque, the bioluminescent bay and east-coast marinas are a short drive away.
Condado
A stylish, cosmopolitan beachfront neighborhood with high-end hotels, residential towers and upscale restaurants, anchored by the historic Condado Vanderbilt Hotel (1919). Neighboring Ocean Park offers some of the most desirable homes in the area, steps from the beach, plus surfing, paddleboarding and kayaking.
Old San Juan
The second-oldest European-established city in the Western Hemisphere, home to El Morro and San Cristóbal, La Fortaleza, the San Juan Cathedral and the Paseo de la Princesa. Its historic luxury homes have unique character, and many offer rooftops with views of the old city, San Juan Bay and the Atlantic.
San Juan
A vibrant metropolitan area with historic sites, modern attractions and an urban family lifestyle. Enjoy acclaimed restaurants such as Marmalade, Santaella, Jose Enrique, 1919 Restaurant and Mario Pagán, and museums like the Museo de Arte de Puerto Rico. Upscale communities include Santa María, Los Paseos and Montehiedra, near top private schools.
Isla Verde
Known for its beaches, luxury resorts and lively atmosphere. USA Today readers voted Isla Verde Beach the best urban beach in the world. Home to the El San Juan Casino at the iconic Fairmont El San Juan Hotel, plus restaurants and nightlife — ideal for buyers seeking ocean views and direct beach access.
Guaynabo
One of the most affluent and developed municipalities on the island, home to prestigious schools such as the American Military Academy and the Baldwin School of Puerto Rico. Exclusive areas include San Patricio Estates, Garden Hills, Tintillo Hills and Torrimar, with shopping at Plaza Suchville, San Patricio Plaza and Guaynabo City Center.
Why Global Buyers Are Establishing Roots in Puerto Rico
Across the world, high-net-worth individuals are rethinking where — and how — they call home. Many are building flexible, geographically diversified lifestyles, and Puerto Rico has emerged as one of the most compelling destinations in this shift. For today’s global citizens, it offers something increasingly rare: stability without sacrifice.
Lifestyle meets logistics
Beyond its coastlines and climate, the island sits within the U.S. legal and banking framework, with direct flights to major mainland cities — a stable base without long-haul travel or complex visa arrangements.
A long-term plan, not an impulse purchase
Buyers approach relocation as a long-term strategy, developed with legal and tax advisors, seeking a primary or secondary residence that supports residency, property structuring and succession planning.
Due diligence matters
Careful buyers verify titles, understand zoning and land-use restrictions, and confirm the legal standing of each transaction with experienced local counsel.
The practical realities of island life
Families weigh healthcare, private schools and infrastructure, and many spend extended periods on the island before moving full time.
A community of global citizens
New residents find peers who share their priorities — privacy, mobility and a life not confined to a single geography.
Cueva Ventana: Puerto Rico’s Natural “Window to the World”
Some of Puerto Rico’s most memorable views lie inland. Tucked into the karst hills above the Río Grande de Arecibo, Cueva Ventana — the “Window Cave” — opens onto a sheer cliffside that frames the river valley below with almost engineered symmetry.
The cave is a product of the island’s karst topography, formed over millions of years as rainwater dissolved the limestone, leaving steep rounded hills known as mogotes. A short, moderate walk through tropical forest leads to the opening — a striking contrast to oceanfront living and a gateway to the island’s greener, mountainous interior.
Frequently Asked Questions
Do U.S. citizens need a passport to move to Puerto Rico?
No. Travel between Puerto Rico and the U.S. mainland is domestic, and Puerto Ricans have been U.S. citizens since 1917.
What currency is used in Puerto Rico?
The U.S. dollar is the official and only currency, and all U.S. banking regulations and FDIC protections apply on the island.
What are the best areas to buy luxury real estate in Puerto Rico?
The most sought-after communities include Dorado, Bahia Beach in Río Grande, Condado, Old San Juan, Isla Verde and Guaynabo neighborhoods such as Garden Hills and Torrimar.
What is Act 60?
Act 60 is the Puerto Rico Incentives Code. Its Resident Individual Investor program offers preferential tax rates on qualifying investment income for new bona fide residents, and was extended through 2055 by Act 38-2026.
Do I need to buy a home to qualify for Act 60?
Resident individual investors must purchase a primary residence in Puerto Rico. Requirements change over time, so consult a qualified Puerto Rico tax attorney or CPA.
How can Luxury Collection Real Estate help me relocate?
Our team guides every client from the first visit to the closing table — from choosing the right community to connecting you with trusted local legal and financial professionals.
Ready to Find Your Place in Puerto Rico?
Discover an exclusive portfolio of Puerto Rico’s most coveted estates. Our team guides every client from the first visit to the closing table.