Taxes, Licenses, Insurance & Utilities
Taxes, one of life’s certainties . . .
THE BELOW INFO IS CHANGING…CRIM(TAX DIVISION)IS CATCHING UP TOT HE TIMES AND ALSO MAKING SALES DIFFICULT WITH WITHHOLDINGS AND PENALIZING SELLERS IF THEY HAVENT BEEN RE-ASSESSED WITH ANY ADDITIONS, POOLS, ETC…OR IF THEIR CURRENT RATE IS BELOW THE NEIGHBORHOOD STANDARD…
SO- BEWARE SELLERS.
Property taxes here are LOW….we are still assessed at 1957 values and the rate is less than $10/$1000. Full time residents also get a Homestead Exemption . . . and Vets get a further exemption. No wonder the government is broke! AND THATS WHY THIS IS CHANGING!!
ON THE RENTAL FRONT:
THERE IS A TOURISM TAX IMPOSED ON VACATION RENTALS.
Long term rentals (over 3 mos) forgo THIS…SO FAR… . . .
RENTAL HOME OWNERS: You MUST pay local income tax . . . to be strictly enforced . . . and it IS the right thing.
HOMEOWNER’S INSURANCE can be acquired. We have resources for our home buyers. It’s NOT that expensive even with hurricane and earthquake coverage. Contents coverage may be high due to some problems with theft. Wood houses ARE expensive to insure. IF you have a mortgage, the bank will provide for a policy to cover the MORTGAGE ONLY . . . so, if you want full coverage, you must add on!
UTILITIES–Electric and water can be transferred right on island with a copy of your deed. It is helpful to have a copy of the utility bill when you go to the offices. Electric is next to MI GENTE GROCERY STORE and Water has moved to Florida near our weekly Farmer’s Market in one of the warehouses. Deposits of less that $100 are required for each for residential accounts/more for commercial. Land line phone service , except for Isabel, is basically non existent post H. Maria.
CELL PHONES . . . most now work here. There is GOOD internet offered by a few companies. We recommend Fire-Fi.
PR CAPITAL GAINS TAX must be paid on real estate sales
Normally, residents pay in April with regular income taxes . . . BUT, non-residents have a withholding imposed at closing. We at Rainbow Realty make this VERY easy . . . no reason for it to be complex. We work with accountants who can be of assistance to you through the process with a fee, of course . . . it is relatively painless with the system we have developed. Residential is normally 15% of the GAIN (difference between what was originally paid, and what it’s currently selling for, MINUS improvements). Corporate Taxes are higher(20%?)
The tax exchange most of us are familiar with (IRSC 1031), IS NOT VALID HERE . . . FACT! We do not pay Federal Taxes here, so it does not work.