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Puerto Rico Tax Law Questions & Answers
1 Answer | Asked in Tax Law for Puerto Rico on
Q: Tax residency question

I need advice on tax residency. I am a Ukrainian citizen (U4U, Hum. Parole) who arrived on March 15, 2024. I have spent 176 days in the United States and plan to relocate to Puerto Rico for 120 days until the end of the year. Will I be considered a resident or nonresident alien by the end of the... View More

James L. Arrasmith
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answered on Jul 18, 2024

To determine your tax residency status for 2024, you need to consider the substantial presence test used by the IRS. Since you arrived in the U.S. on March 15, 2024, and have spent 176 days in the country so far, your stay in Puerto Rico will also count towards your total days in the U.S. for tax... View More

1 Answer | Asked in Real Estate Law, Tax Law and Estate Planning for Puerto Rico on
Q: Is donation a viable option if the land and property on the land does not have a deed? what would be the impact of an

excuted donation when the land and property are not registered? Was the donation process illegal and can the lawyer be held accountable for malpractice if it impacted tax liabilities to all other heirs of an unregistered, unsegregated land belonging to multiple parties?

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answered on Jul 2, 2024

This is a complex question involving several aspects of Puerto Rican property law, tax law, and legal ethics. I'll break down the key issues and provide some general insights, but please note that this is a situation where consulting a qualified local attorney would be crucial for specific... View More

1 Answer | Asked in Estate Planning, Real Estate Law, Tax Law and Probate for Puerto Rico on
Q: Which Department to I check with for unclamed funds from the Sale of a Family Estate in Puerto Rico?

My Grandmother signed some documents while sick in a Hospital in PR and has since passed. Her Family never received a copy of the document signed and her heirs have not received their share of inheritence from the sale of a large multi-acre sale in Puerto Rico. My mother is now up in age and... View More

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answered on Jun 25, 2024

Based on the information provided, there are a few potential avenues you could explore to research unclaimed funds from the sale of a family estate in Puerto Rico:

1. Departamento de Hacienda (Department of Treasury):

This is indeed a good place to start. The Departamento de...
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2 Answers | Asked in Real Estate Law, Tax Law and Estate Planning for Puerto Rico on
Q: How can i dispute CRIM’s fines/fees on unpaid taxes for a property I inherited through death?

I paid the principle of over $40k. The dues are even more. I never received a tax bill until Jan 2024.

Rafael  Pagan-Colon
Rafael Pagan-Colon
answered on May 7, 2024

Unfortunately, any property taxes owed must be paid by the heirs of the deceased owner. Whether you receive a bill from CRIM or not depends on whether you notified change of ownership. Assuming there are more than one heir, these taxes are proportionally imputable between the heirs. Legal liens,... View More

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1 Answer | Asked in Tax Law for Puerto Rico on
Q: I’m a 1099 NEC that work for company in Florida remotely from my home in PR. Do I have to pay taxes to IRS as well as PR

I filed taxes from prior year and got a notice saying I have to file in PR and pay taxes as well.

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answered on Apr 23, 2024

As a resident of Puerto Rico who is working remotely for a company based in Florida, you generally have to pay taxes to both the IRS and the Puerto Rico tax authorities. Here's what you should know:

1. Federal Income Tax: Puerto Rico residents are required to file a U.S. federal income...
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1 Answer | Asked in Estate Planning, Real Estate Law, Tax Law and Probate for Puerto Rico on
Q: How do probate laws in NY and PR affect each other? My late husband's properties will be in probate simultaneously.
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answered on Apr 18, 2024

Probate laws in New York (NY) and Puerto Rico (PR) are separate and distinct, as they are two different jurisdictions. However, if your late husband owned properties in both NY and PR, the probate process will need to be initiated in each jurisdiction simultaneously. Here's what you should... View More

1 Answer | Asked in Real Estate Law, Tax Law and Civil Litigation for Puerto Rico on
Q: I am currently being sued by my ex regarding my half of my apartment in Puerto Rico. My ex is claiming that I abandoned

the property and demanding that I pay for her lawyers' fees. This is not a divorce case. We own a condominium apartment and this is our first home together. We have owned the property for a year now. I paid more than half of the apartment cost, yet we still own it 50/50. I left said property... View More

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answered on Mar 26, 2024

When you decide to donate your half of the property in Puerto Rico to your ex, there could be tax implications depending on the value of the property and the laws in place. In Puerto Rico, the donation of real estate is subject to the payment of a donation tax unless specific exemptions apply. This... View More

1 Answer | Asked in Tax Law and Real Estate Law for Puerto Rico on
Q: Can I switch name of ownership on a house that has taxes still owed?

My dad passed away in 2015 he has a house in PR that me and my mother have been keeping up with and we would like to sell it but we first have to switch it over to our name can we do that while taxes are still unpaid?

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answered on Mar 13, 2024

Transferring ownership of a property with unpaid taxes can be complicated and may vary depending on the specific laws and regulations of Puerto Rico. However, in general, under federal law, it is possible to transfer ownership of a property even if there are outstanding property taxes owed. That... View More

1 Answer | Asked in Tax Law for Puerto Rico on
Q: mom & stepdad pass and left a property & I was wondering if my stepbrother buys me out do I have to pay capital gain tax

they had no will.

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answered on Mar 4, 2024

When a property is inherited due to the passing of relatives and you are considering selling your share to a stepbrother, understanding the tax implications is important. If they passed away without a will, typically, the property's ownership would be determined by the state's intestacy... View More

1 Answer | Asked in Estate Planning, Real Estate Law and Tax Law for Puerto Rico on
Q: Can we renounce this property to CRIM so it doesn’t pass on to our children when we pass?

My sister & I are declared heirs & paying taxes to CRIM since our mom’s passing in 2016, but 1 of the properties (land only) is not registered in our name at Prop. of Registry. It’s registered to our grandfather for more than 100 yrs. It was an unresolved matter for mom to register it... View More

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answered on Mar 2, 2024

In Puerto Rico, dealing with inheritance and property taxes involves navigating a complex legal landscape, especially when property titles and registrations involve unresolved issues from past generations. If you and your sister are considering not passing a specific piece of land to your children... View More

1 Answer | Asked in Real Estate Law and Tax Law for Puerto Rico on
Q: For a property in PR, which amount is subject to taxation for a resident of the US who inherited it when sold?

Ex. - Juan's mother dies in 2020. Juan inherits this property at this time. He is going to sell it in 2023 for 200K. Is 200K the taxable amount, or is the taxable amount a percentage of the appreciating value between 2020-2023? (Step up basis)

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answered on Dec 25, 2023

When Juan inherited the property in Puerto Rico in 2020, the basis of the property for tax purposes would typically be the fair market value at the time of inheritance. This is known as a "step-up" in basis. When he sells the property in 2023 for $200K, the taxable amount would generally... View More

1 Answer | Asked in Tax Law, Municipal Law and Probate for Puerto Rico on
Q: We have several problems here involving renouncing inheritance, segregation, and property tax status.

How do you renounce inheritance in Puerto Rico and find out property tax status (have the taxes been paid)? Also, if we renounce inheritance, can we shift the property to a relative who lives there? We live in the United States.

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answered on Nov 19, 2023

To renounce an inheritance in Puerto Rico, you must formally declare your intention to do so within a specific timeframe, usually within nine months of the decedent's death. This declaration is made before a notary in Puerto Rico. It's a definitive decision, meaning once you renounce, you... View More

1 Answer | Asked in Tax Law and Real Estate Law for Puerto Rico on
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.

Rafael  Pagan-Colon
Rafael Pagan-Colon
answered on Oct 24, 2023

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... View More

2 Answers | Asked in Real Estate Law and Tax Law for Puerto Rico on
Q: My mother transferred 2 properties in my name as a living inheritance. Is there any way that I can avoid paying any tax

She still lives in Puerto Rico, and I would like to build her a home on a different property that my brother owns and would like to use some of the monies for the build would I still pay a capital gains tax?

Rafael  Pagan-Colon
Rafael Pagan-Colon
answered on Jul 15, 2023

Unless either real estate property is your primary residence, you'll be paying property taxes. Furthermore, if you reside outside Puerto Rico, the sale of either or both real estate properties will be subject to a 15% retention of the sales proceeds, which will be deposited with the Puerto... View More

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1 Answer | Asked in Real Estate Law and Tax Law for Puerto Rico on
Q: What do I need to file a CAMBIO de DUEÑOS, and how can I obtain a copy of the Segregation Deed pertaining to property ?

I am in the process of filing for a change of ownership for a property that was left to me by my father prior to his passing. the Escrituras for myself and 2 other siblings were completed years ago, the land was segregated into three parts, in each of our names. Recently, one of my siblings filed a... View More

Rafael  Pagan-Colon
Rafael Pagan-Colon
answered on Jul 6, 2023

Your first step would be to procure a registry certification from the Puerto Rico Property Registry. If the segregation was filed with the Registry, the original lot (finca) will identify the three lots. You do not state whether your late father left his will or whether he died intestate. If a will... View More

1 Answer | Asked in Real Estate Law and Tax Law for Puerto Rico on
Q: My mother inherited land in Puerto Rico in 1991. She is currently a resident of NY and in assisted living .

As my mothers sole heir, if she passes, will I be subject to inheritance taxes on the land? I have read that inheritance tax on land can range from 18%- 50% of the value.

Rafael  Pagan-Colon
Rafael Pagan-Colon
answered on Apr 6, 2023

At this time, the Commonwealth of Puerto Rico does not impose inheritance per se. Nevertheless, property taxes are another matter entirely. Assuming that she lived the real estate property in Puerto Rico until her death, and assuming that no descendant has lived the real estate property since,... View More

1 Answer | Asked in Land Use & Zoning, Real Estate Law and Tax Law for Puerto Rico on
Q: What Office can verify the assigned numbers that corresponds with each part of the property and was it segregated, OPGE

the property in question should have been segregated according to our ‘records’ back when they were originally filed by my father. There appears to be a sequence of numbers that corresponds with each one of the assigned land parcels. Could the OPGe assist with clarifying if the land was... View More

Rafael  Pagan-Colon
Rafael Pagan-Colon
answered on Apr 3, 2023

You'll have a better chance to get the information from the Property Registry. When lad plots are segregated from a main lot, the Registrar annotates each of the new property ("fincas") numbers for each of the newly segregated land plots on the margin of the main lot. Also identified... View More

2 Answers | Asked in Real Estate Law and Tax Law for Puerto Rico on
Q: Can I submit these documents on the portal of the CRIM to request a change of ownership? & request these permits OPGe?

I did the claim de Herrederos after my father passed and I think a ‘Plano de certification y mensura’ may have been done on the property when it was surveyed by an engineer and whole description was filed with the paperwork. Unless it is a separate or different process? don’t know if that... View More

Ramon  Olivencia
Ramon Olivencia
answered on Mar 24, 2023

Your description contains confusing information about the multiple steps required for an inheritance to be correctly transferred to the heirs. Given the specialized nature of estate law in Puerto Rico, hiring an attorney to do this for you is highly recommended. If everything is correct, a licensed... View More

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1 Answer | Asked in Real Estate Law and Tax Law for Puerto Rico on
Q: Where would I file the Request for the transfer of ownership? can this be done online? Where are original records kept?

Assuming that most of the process should have been already done, where would I go to find the measurements of the plot? I had the land surveyed when we started the process back in 2007 when my father passed.I’m pretty sure I have most of these documents. The only thing I don’t have is the title... View More

Rafael  Pagan-Colon
Rafael Pagan-Colon
answered on Mar 23, 2023

Ownership of the property can be established by requesting a registry certification from the Puerto Rico Property Registry (Registro de la Propiedad) with copy of the scanned foils that shows the historical tract of the real estate property. You can physically visit the Registry located in the... View More

1 Answer | Asked in Estate Planning, Real Estate Law, Tax Law and Probate for Puerto Rico on
Q: My mom wants to gift her PR home to me (her only heir). What tax/other issues should I be aware of?

My mother is a PR resident (I am not), and wants to gift her home to me before she remarries or dies. She also said she may want to still live in the home after she gifts it to me. She said she would gift the title, but still have it enscribed in her name. I want to accept her kind gift, but I am... View More

Rafael  Pagan-Colon
Rafael Pagan-Colon
answered on Jul 18, 2022

First off, unless your mother donates the property to you by way of a deed the Property Registry would still register the real estate in her name. Once she transfers the property in fee simple to you, it needs to be inscribed in your name by filing a certified copy of the donation deed and of your... View More

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