RIO GRANDE, Puerto Rico — Last month, the government of Puerto Rico passed a new Real Estate Market Stimulus Act, part of the 2011 Housing Stimulus Program, designed to encourage home ownership on the island.
The Act makes purchasing a home in Puerto Rico a much simpler process, in addition to offering several incentives that alleviate financial weights for the buyer.
The benefits and incentives of the program will apply to all residential purchases in Puerto Rico acquired through June 30, 2011.
The Real Estate Stimulus Act, which applies to new construction, is comprised of several incentives including:
— Total exemption from long term net capital gains taxes on qualifying properties
— Total exemption from property taxes for five years
— Exemption from the payment of transaction fees, internal revenue and presentation stamps for all parties involved in the purchase of new construction housing
Benefits are available to eligible taxpayers and applies to residents and non-residents
"These incentives add an irresistible offer to an already enticing number of benefits when purchasing a residence in Puerto Rico, including a beautiful landscape, tropical climate, stable government and great safety record. Additionally, Puerto Rico is an unincorporated territory of the US and provides US mainland buyers the ease of travel to the island without the need of a US passport. It is an ideal place to purchase a home," explained Don Arturo Diaz, president and founder of Empresas Diaz.
Additionally, two programs will support the Act: "My Security Mortgage" and "My New Home". "My Security Mortgage" will serve as the primary financing source where the mortgage institution selected could lend up to 105 percent of the cost of the new home whereas the "My New Home" program can grant discounts from $5,000 to $10,000 for new home buyers.
"We are very pleased with the new program and hope that both local and international buyers will take advantage of such an amazing opportunity being offered by the Puerto Rican government," added Diaz