How much does the government receive when selling a property in Puerto Rico?

When a person sells a property, whether residential, commercial or land, they must take into account the expenses incurred with the government of Puerto Rico, among those expenses are the stamps, receipt and municipal contributions that are required at the time of sale and closing.

At the time of closing a Property there are some expenses such as the deed of sale and notary expenses, which are paid by the seller in most cases unless they have negotiated something different and in that case the parties are free to negotiate. and choose who pays the expenses. When the transaction is greater than $50,000, current law indicates that the notary lawyer charges at least 0.5% of the sale amount for his work of preparing and sealing the deeds and other documents required by law.

In a mortgage transaction, the legal and transaction expenses average between 2.5% and 3% of the amount of the sale price. It is important that all expenses have to be detailed in the closing document, known as 'closing disclosure' by law.

Payments to Governments

When the sale of a property generates profits and there is no exemption that applies, it is usual to pay between 15% and 24%. This extends to investment units, commercial properties, and land.

When people generate more than $250,000 in income, the rate to pay is 24% of that capital gain.

When the property is for agricultural, tourist or manufacturing use, preferential rates and up to 0% may apply due to the incentives available in the market.