Brain Theme Park

Puerto Rico's Real Estate Transactional Costs

Dec 21, 2024

General Costs for All Property Types

• Principal and Interest Payments: Monthly payments based on your mortgage loan terms.
• Property Taxes (CRIM): Rates depend on property classification, managed by the Municipal Revenue Collection Center.
• Home Insurance: Coverage for natural disasters and liability.
• Flood Insurance: Required for properties in FEMA-designated flood zones.
• Mortgage Insurance (PMI): Applies if the down payment is less than 20%.
• Closing Costs: Includes legal fees, title insurance, recording fees, and stamp duties.
• Utilities Setup Costs: Deposits or fees for water, electricity, and internet services.
• Maintenance and Repairs: Budget for ongoing upkeep.
• Legal Fees: Notary fees typically range from 0.5% to 1% of the purchase price.
• Transfer Tax: Generally applies to the seller but may be negotiated.

Additional Costs for Specific Property Types

Depending on the type of property, you might encounter these specific expenses:

• Residential Property: Hurricane insurance and HOA fees for gated communities or condominiums.
• Land: Land use permits and surveying costs.
• Commercial Building: Business licensing, zoning fees, and structural assessments.
• Shopping Mall: Infrastructure costs and larger escrow reserves.
• Investment Property: Act 60 compliance fees and rental licensing fees.
• Second Home: Luxury tax and travel costs.