Newberg, OR asked in Tax Law and Real Estate Law for Puerto Rico

Q: My dad wants to donated his house to me and my 2 sibling are in agreement. Do I have to pay any kind of taxes?

The house is located in Puerto Rico.

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1 Lawyer Answer
Rafael  Pagan-Colon
Rafael Pagan-Colon
  • San Juan, PR
  • Licensed in Puerto Rico

A: Any real estate property located in Puerto Rico that does not constitute your primary residence is subject to property taxes. If the property currently belongs to your father and is his primary residence, he may have requested a tax exemption from the Municipal Income Collections Center ("CRIM", by its Spanish acronym) which will allow him to legitimately avoid paying taxes, so long as the real estate property is $150,000 or less. If he donates to his children, he can retain the right to use and habitation of the real estate property for the rest of his life, in which case, he can still enjoy the exemption.

Nevertheless, should he move, or, upon his demise, the property remains vacant or is occupied by anyone who is not a direct descendant of your father, the property loses its tax exemption and begins to accrue taxes.

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