Selling a property in Puerto Rico involves more than just finding a buyer—it requires an understanding of the taxes and costs associated with the transaction. From CRIM property taxes to capital gains and closing costs, sellers must navigate these financial obligations to avoid unexpected expenses and ensure a smooth sale.
Puerto Rico Real Estate, PSC is here to help you understand these tax implications, guiding you every step of the way so that you maximize your profit while staying compliant with local tax laws.
CRIM (Centro de Recaudación de Ingresos Municipales) is Puerto Rico’s property tax authority, responsible for collecting annual real estate taxes. When selling a property, sellers must ensure that all CRIM payments are up to date.
Annual Property Taxes: CRIM assesses property taxes based on the property's registered value.
Debt Clearance: Before selling, sellers must obtain a Certificación de Deuda CRIM, proving that all taxes are paid.
Tax Exemptions: Some properties qualify for exemptions (e.g., primary residences, agricultural land), but these must be verified before the sale.
CRIM Verification: We ensure your property’s CRIM status is clear before listing.
Debt Resolution: We assist in resolving outstanding CRIM payments to avoid closing delays.
Tax Assessment Review: We help verify if the registered value is correct to prevent over-taxation.
Capital gains tax applies when selling a property at a profit. It is calculated based on the difference between the purchase price and the selling price, adjusted for improvements and allowable deductions.
Individuals: 15% on net capital gains.
Corporations: 20% on net capital gains.
Non-Residents: Subject to federal and Puerto Rico tax obligations.
Cost of home improvements (must have receipts for proof).
Selling expenses, including real estate agent fees.
Exemption for primary residences if lived in for at least two years.
Tax Calculation Assistance: We help estimate your capital gains liability.
Deductions Review: We ensure you claim all allowable deductions to reduce taxable gains.
Tax Filing Guidance: We connect you with tax professionals for accurate reporting.
Beyond CRIM and capital gains, sellers in Puerto Rico should be aware of additional taxes and closing costs that impact their net proceeds.
In Puerto Rico, a notary-public attorney is required to draft the deed of sale.
Notary fees typically range between 0.5% and 1% of the sale price.
A 0.5% transfer tax applies when selling a property.
Properties inherited or transferred between family members may qualify for exemptions.
Some municipalities may require a local business license tax if the property was rented before the sale.
Closing Cost Estimation: We help calculate your total expected expenses.
Legal & Notary Coordination: We assist with finding experienced professionals.
Municipal Compliance: We verify local tax obligations to avoid last-minute surprises.
If you are a non-resident selling property in Puerto Rico, you may be subject to a 15% withholding tax on the gross sale amount. This tax ensures compliance with Puerto Rico’s tax regulations.
File for a Withholding Exemption Request if you qualify for deductions.
Work with a tax professional to ensure compliance and avoid overpayment.
Withholding Tax Evaluation: We assess whether you qualify for reduced tax liability.
Exemption Filing Assistance: We connect you with experts to handle the necessary paperwork.
International Seller Support: We guide non-resident sellers through the taxation process.
While taxes are unavoidable, strategic planning can help reduce your tax liability and maximize your net profit.
Verify CRIM Records: Ensure your property’s tax status is accurate to avoid unnecessary fees.
Time Your Sale Strategically: Selling a primary residence after two years of occupancy may qualify for capital gains exemptions.
Keep Detailed Records: Maintain receipts for renovations, property taxes, and selling costs to claim deductions.
Work with a Tax Professional: Tax laws change, and expert advice ensures compliance and savings.
Tax Strategy Planning: We advise on the best time and method to sell for optimal financial results.
Documentation Support: We help compile necessary records for tax deductions.
Financial Consultation: We connect you with local tax professionals to ensure compliance.
Navigating property taxes in Puerto Rico can be overwhelming. Choosing Puerto Rico Real Estate, PSC ensures a seamless, stress-free experience with expert guidance at every step.
In-Depth Tax Knowledge: We simplify CRIM, capital gains, and other tax processes.
Accurate Cost Estimates: We provide upfront estimates of taxes and closing costs.
Full-Service Real Estate Support: From tax guidance to buyer negotiations, we handle everything.
Proven Success: Our expertise in Puerto Rico’s real estate market ensures maximum seller profits.
Selling a property in Puerto Rico requires a clear understanding of CRIM property taxes, capital gains, and closing costs. Failing to plan for these expenses can result in delays, legal issues, or unexpected financial burdens. Puerto Rico Real Estate, PSC is your trusted partner, providing expert guidance to ensure a profitable and stress-free home sale.
Ready to sell? Contact us today: 📞 787.244.6364
📧 [email protected]
🌐 www.ThePuertoRicoRealEstate.com
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Your satisfaction guides our every step. Thanks for choosing PRRE. View all.
"Thank you for your service great teamwork I completely appreciate your time and all your effort thanks again"
You were so much help. Thank you for staying on top of things with me.
The closing was straightforward and completed without incident. The buyers were wonderful. Thank you.
The closing was straightforward and completed without incident. The buyers were wonderful. Thank you
I received your listing in email and just wanted to thank you for the EXCELLENT information. You included not only the correct location, but good, quality video/photos, everything. It's not exactly what I need but: A rare thing to get such a quality listing information, just wanted to say thank you.
Everything went smooth and great at closing, you were such a great help in the process. I will refer you to a friend that needs your help. Thanks alot for all you did for me.
Thanks to all of you, super attention, you explained everything very kindly and the Lcda was also super kind. All excellent more than grateful for everything!!
Everything super good, they treated us very well and everything went well with the closing. Everyone was very nice and the Lcda was very kind to us. Thanks to you and your team who treated us very well and never let us go. I will recommend you and hope to call you soon to find a property.
Closing Done, only took an hour.No problems it went smooth. Thanks again for everything! Having a drink to celebrate.
Very Smooth Transaction. Your Team was very supportive and they helped me alot during the transaction.
