Vaca Rental Market in Puerto Rico still recovering?? tax benefit?

[Rebecca Cramer]

I am looking at buying real estate in Puerto Rico and renting it out on Airbnb. I looked at other airbnb rentals and even the superhosts in popular vacation town called Rincon that have calendars that are WIDE OPEN! Like a few sparse weekend and weeks but mostly NOT BOOKED! Im wondering if its a good investment because not only can you only ask $65-$125/night (vs my rental in Ocean City, Maryland when I can get up to $700/night) but it seems no one is renting down there period. Is this just because of the hurricane and people aren't going there as much or is Airbnb not big in Puerto Rico or is this just the short term rental situation in Puerto Rico period?

I have heard of the great tax benefits for Puerto Rico so I wanted to take advantage..and if anyone knows those advantages and wants to break that down for a short term rentals business through airbnb that would be great too! Thanks everyone!

[Jorge Lopez]

Hello Rebecca Cramer,

You mentioned the tax benefits associated with Puerto Rico and this is something that I have been very interested in as well.  I found this article published by Nomad Capitalist that was very helpful:

PUERTO RICO TAX INCENTIVES: THE ULTIMATE GUIDE TO ACT 20 AND ACT 22

There are many requirements that need to be met in order to benefit from these tax incentives but it seems that the one that people have the hardest time complying with is being a "bona fide resident".  Essentially, you will need to move to the island and live there in order to qualify for this tax incentive. 

Hope this helps!