Living in Puerto Rico: Frequently Asked Questions

Puerto Rico is a U.S. Commonwealth, an unincorporated, organized territory with commonwealth status. This provides residents with the full benefits of U.S. citizenship while preserving the island’s vibrant cultural identity and local governance traditions.

U.S. citizens do not need a passport to travel to Puerto Rico. The island is treated as a domestic destination, making travel simple and convenient for residents and their guests.

The U.S. dollar is the official currency of Puerto Rico, ensuring seamless financial transactions with the mainland United States.

Both Spanish and English are official languages. Spanish is commonly spoken in daily life, while English is widely used in business, tourism, and professional settings, particularly within international communities such as Four Seasons Private Residences Puerto Rico.

Puerto Rico enjoys a tropical marine climate with steady, warm temperatures averaging around 85°F (29°C). Mild seasonal variations, 74°F (23°C) in winter and 81°F (27°C) in summer, make outdoor living, golf, and beachfront activities possible throughout the year.

Puerto Rico follows Atlantic Standard Time (AST) year-round. The island does not observe daylight savings time, ensuring consistent scheduling for both leisure and international business.

Puerto Rico operates under U.S. federal law alongside its own civil code, based on Spanish tradition. This dual system provides the familiarity and protections of U.S. law with the unique heritage of local legal practices.

Puerto Rico is fully integrated into the U.S. postal system, with identical rates and services. Major carriers, including FedEx, UPS, and DHL, also operate on the island, making shipping and logistics as seamless as the mainland.
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“Why does Puerto Rico’s location make it one of the most strategically important places in the Caribbean?”
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Strategically positioned along the Mona Passage, Puerto Rico is situated on a vital shipping route to the Panama Canal. San Juan Harbor, one of the Caribbean’s largest natural ports, further underscores the island’s importance as a hub for commerce and travel.

Approximately 35-minutes from the residences, Old San Juan offers a rich tapestry of history and culture. Its cobblestone streets, pastel-colored colonial architecture, and iconic fortresses such as El Morro and San Cristóbal provide an authentic connection to Puerto Rico’s Spanish colonial heritage.

Puerto Rico is home to approximately 3.3 million residents, creating a vibrant and dynamic society. The island balances the energy of a cosmopolitan destination with the warmth and authenticity of local culture, offering both a substantial community and a strong sense of place.

The residences are located within minutes from El Yunque National Rainforest, a 28,000-acre sanctuary of waterfalls, lush trails, and rare wildlife, the only tropical rainforest in the U.S. National Forest System. To the east, the Fajardo Bioluminescent Bay offers a magical evening experience, where waters glow with natural light.
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For those drawn to the sea, Marina Puerto del Rey, the largest marina in the Caribbean, is nearby, offering unrivaled access for yachting and sailing. Beyond, the islands of Culebra and Vieques are easily reached, each boasting world-famous beaches and tranquil escapes that embody the beauty of Puerto Rico.

Puerto Rico is served by Luis Muñoz Marín International Airport, the region’s premier hub, with nonstop flights from more than 20 U.S. cities and connections across the globe. Average flight times from the East Coast are around three-hours, making it possible to work from New York in the morning and enjoy the Atlantic breeze from your terrace by afternoon.

The residences are located 25 minutes from the airport, ensuring seamless access for both business and leisure.

U.S. citizens do not need a passport to travel to Puerto Rico, as it is a U.S. territory. International visitors follow the same visa requirements as entry to the continental United States, ensuring straightforward access for family, friends, and guests.

Puerto Rico has earned international recognition as a destination for gastronomic excellence. The island’s dining landscape is shaped by award-winning chefs and innovative restaurants that celebrate both global artistry and Puerto Rico’s rich culinary heritage. From acclaimed fine dining experiences to contemporary concepts led by internationally recognized talent, cuisine here reflects a refined fusion of Spanish, African, and indigenous influences.

Paulson Puerto Rico, the developer of Four Seasons Private Residences Puerto Rico, also owns sister properties that have become culinary landmarks in San Juan. Restaurants such as 1919 at the Condado Vanderbilt and Levant by Chef Michael White at La Concha Resort Autoraph, are part of a portfolio that continues to elevate Puerto Rico’s reputation as a world-class dining destination.

Puerto Rico offers a sophisticated mix of luxury boutiques, international brands, and vibrant local shopping. In Condado, a cosmopolitan district by the sea, residents enjoy a walkable setting filled with high-end fashion boutiques, galleries, and dining. The Mall of San Juan complements this experience with Puerto Rico’s premier collection of international luxury retailers and designer brands. For variety and scale, Plaza Las Américas, the largest shopping center in the Caribbean, offers more than 250 stores, from global names to beloved local brands.

Entertainment extends far beyond shopping. Residents can enjoy championship golf, prestigious casinos, and San Juan’s thriving cultural scene. From art galleries and live music in Santurce to the history and charm of Old San Juan, the island offers a dynamic lifestyle enriched by both modern sophistication and cultural heritage.

Puerto Rico maintains one of the most diverse economies in the region, supported by strong U.S. ties and global investment. In the luxury sector, the real estate market has demonstrated consistent stability, driven by discerning buyers seeking the unique blend of lifestyle, accessibility, and security that Puerto Rico provides. Favorable tax incentives and a business-friendly environment continue to make the island an attractive place to invest, live, and thrive.

With a population of 3.3 million, Puerto Rico is a modern, bilingual society shaped by Spanish, African, indigenous, and American influences. This creates a cultural environment that is both authentic and sophisticated, one where residents enjoy the convenience of U.S. systems alongside the island’s proud traditions of music, art, and celebration.

San Juan, home to over one million residents in its metropolitan area, offers cosmopolitan energy with world-class museums, theaters, and events, while towns and coastal villages preserve the island’s intimate and welcoming spirit.

Puerto Rico offers world-class infrastructure for business and events. The Puerto Rico Convention Center, the largest and most technologically advanced in the Caribbean and Latin America, features 580,000 square feet of flexible space and can accommodate groups of up to 10,000. Its modern facilities, combined with excellent air connectivity and no passport requirements for U.S. citizens, make the island an ideal hub for international meetings and conferences.

Beyond the convention center, Puerto Rico’s financial district in Hato Rey, known as La Milla de Oro (the Golden Mile), serves as the island’s economic heart. Here, Paulson Puerto Rico, the developer of Four Seasons Resort and Residences Puerto Rico owns a distinguished portfolio of Class A office buildings under Paulson Offices, reflecting the company’s deep commitment to Puerto Rico’s economic development. This unique combination of modern business infrastructure and a thriving financial district makes conducting business in Puerto Rico both seamless and sophisticated.

Puerto Rico already offers significant tax incentives and some tax credits for certain manufacturing industries, hotel and tourism-related operations, agricultural activities, the film industry, international banking operations, green energy projects, and certain hospital facilities.

On July 1, 2019, in search of establishing a new transparent and efficient process for granting and overseeing all the incentives granted by the government, the Governor of Puerto Rico approved Act 60- 2019 (hereinafter referred to as the “Incentives Code”), to simplify in a single body of law all the tax incentives that Puerto Rico offers.

These tax benefits granted to individual investors who relocate to Puerto Rico under the Incentives Code (hereinafter referred to as “Resident Individual Investors”) will be available until December 31, 2035 (the ‘‘Tax Exemption Period’’). During this period, interest and dividends received by a Resident Individual Investor will be 100 percent tax exempt from Puerto Rico income taxes. Under I.R.C. §933 interest and dividends from Puerto Rico sources will be exempt from federal taxation. To be considered a Resident Individual Investor and be able to avail from the benefits of a grant, the individual must not have been a resident of Puerto Rico for the 6 years before January 17, 2012.

Long-term Capital gains derived by a ‘‘resident individual investor’’ during the Tax Exemption Period from Securities and Other Assets, as defined in the Incentives Code, will be subject to preferential income tax rates. If such gains were deemed to have accrued before the individual investor becomes a Puerto Rico resident and are recognized within 10 years after the date the investor established residence in Puerto Rico, the gains will be taxed at a 15 percent income tax rate, (for some sellers, the Alternate Basic Tax, which ranges from 1 to 24 percent may apply in lieu of the 15% income tax rate). If such gains are recognized after the 10-year period, but prior to January 1, 2036, a 5% income tax rate will apply. Captial gains related to investment appreciation considered accrued after the investor becomes a Puerto Rico resident will be 100% exempted from Puerto Rico income taxes.
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Under the Incentives Code, a Resident Individual Investor may transfer or donate freely, inter-vivos, and at their own discretion all or part of their assets to either a Puerto Rico or a foreign trust, irrespective of whether the assets transferred or donated are tangible or intangible in nature; where the property is located, and the transfer, donation, testamentary disposition and /or the terms and conditions of such trust is inconsistent or to the contrary to any legal or regulatory provision in Puerto Rico, including but not limited to the provisions of the Civil Code of Puerto Rico, including community property and forced heirship rules.
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The Incentives Code requires individuals to purchase a residential property in Puerto Rico within the first two years after the issuance of the decree. Also, Resident Individual Investors must make a charitable contribution of at least $10,000 to a non-for-profit organizations operating in Puerto Rico that are certified as tax exempt entities under Section 1101.01(a)(2) of the Puerto Rico Internal Revenue Code, as amended (the “PR Code”). Of the $10,000 amount, $5,000 must be destined to non-profit entities operating in Puerto Rico whose work addresses the eradication of child poverty and which appear on the list published by the Special Joint Committee on Legislative Funds for Community Impact. Failure to comply with these requirements would result in the retroactive revocation of the tax decree. Residential Individual Investors should file an annual report with a filing fee of $5,000.

The Incentives Code allows business enterprises, ranging from advertising, shared services centers, trading companies and accounting and legal services, to telemedicine facilities, medical tourism and blockchain services to benefit from special tax rates applicable to income derived from services rendered within Puerto Rico to certain customers located outside of Puerto Rico (hereinafter referred to as “Eligible Business”). Services for foreign markets are services performed for nonresident individuals or foreign entities that have no nexus with Puerto Rico. Services provided for a U.S., non-Puerto Rico client would qualify. In other words, the eligible service is not, and will not be, related to the conduct of a trade, business or other activity in Puerto Rico. For example, warehousing and distribution services for products manufactured outside of Puerto Rico and to be distributed to markets outside of Puerto Rico will be considered eligible services.

To enjoy the benefits granted under the Incentives Code, an Eligible Business must request and obtain a tax exemption decree. Such decree will have a term of fifteen (15) years, renewable for fifteen (15) additional years, provided that the Eligible Business met all the requirements and conditions set forth in the decree. To avail from the benefits of the Incentives Code, certain conditions must be satisfied by the Eligible Business, such as maintaining a minimum of one (1) direct employee for businesses with an annual projected or actual volume of business of more than $3,000,000. The Secretary has the authority to impose a higher employment requirement if deemed appropriate taking into consideration the best interests of Puerto Rico.

The tax exemption decree will constitute a contract with the Puerto Rico government not subject to subsequent legislative changes. During the term of the decree, the grantee will enjoy a: (i) four percent (4%) income tax rate on export services income, (ii) one hundred percent (100%) tax-exemption for distributions from earnings and profits derived from the export services income, (iii) seventy five percent (75%) exemption from real and personal property tax and (iv) fifty percent (50%) exemption from municipal license tax.

Some of the benefits provided under Act 216-2011, as amended, include:

• One hundred percent (100%) tax exemption from income taxes, including the alternate basic tax and the alternate minimum tax, imposed on the capital gain derived from the sale of property used as a principal residence by the seller or his family for the two years immediately preceding the sale. This incentive is available until December 31, 2030;
• One hundred percent (100%) tax exemption from income tax, including the alternate basic tax and the alternate minimum tax, imposed on the long-term capital gain derived from the sale of certain newly constructed property, which was acquired by the seller between November 1, 2011 and June 30, 2013. This incentive is available until December 31, 2030 and is applicable only to the first sale of the property;
• Certain income tax exemptions, including the alternate basic tax and the alternate minimum tax, may apply to the long-term capital gain derived from the sale of certain qualified residential property that is not newly constructed, which was acquired by the seller between November 1, 2011 and June 30, 2013. This incentive is available until December 31, 2030 and is applicable only to the first sale of the property;
• One-hundred percent (100%) tax exemptions from alternate basic tax and alternate minimum tax imposed on the long-term capital gain derived from the sale of certain residential newly constructed property acquired by a seller or by certain qualified institutional investors between July 1st, 2013 and December 31, 2020. This incentive is available until December 31, 2030. This exemption is also applicable to any buyer that acquires an eligible housing from a qualified institutional investor if it is the first sale made by such investor after his initial acquisition.
• One hundred percent (100%) tax exemption on real property taxes, for a maximum period of five (5) years of certain residential newly constructed property. Such exemption is available until December 31, 2025 (irrespective of when the exemption was originally requested).