Are Puerto Ricans being displaced by Tax Act 60?

Описание: For Further information on gentrification of Puerto Rico and Tax Act 60 #   • Are Puerto Ricans being pushed out?  
#   • Rich people are moving to Puerto Rico and ...  

Welcome to Puerto Rico, where a wave of gentrification has property prices rising on an island where 43% of the population live below the federal poverty level..

Many Puerto Ricans say they can no longer afford to stay in their homes with outside investors buying up properties and driving up prices.

Many outside investors buy residential Properties and then resell them at higher prices or turn them into short-term vacation rentals turning entire neighborhoods into airborne carithers and creating a shortage of inventory for local residents.

The creeping gentrification angers many Puerto Ricans who have become increasingly more forceful in questioning how an economy reliant on tax breaks for the wealthy can work for local residents increasingly unable to afford property.

These tax breaks fall under a law known as Act 60, a version of which was initially enacted by the Puerto Rico government under another name in 2012, as the island faced a looming economic collapse. This tax incentive drew more interest after 2017, when hurricane Maria decimated the island. In 2019 the tax breaks were repackaged to attract finance, tech, and other investors.

In 2021, Puerto Rico received over 1,349 applications from people looking to become resident investors. Of those, about 1,000 were approved. In all more than 4,286 applications have been approved since 2012 with more than 35% of them approved in the last 3 years.

Under this law, an investor can qualify for the tax break if he or she has not been a resident of Puerto Rico for at least 10 years prior. The investor must also buy a home to qualify for relief from taxes on capital gains, dividends, income taxes, interest, and revenues from services.

Now an important thing to note here is that the more than 3 million Puerto Ricans already living on the island do not qualify for those tax breaks.

Now keep in mind that those 4,286 applications that have been approved, more than likely are individuals in the millionaire class who have significant resources and money and can buy up a significant amount of the island and in turn drive up residential prices to a point where the average Puerto Rican on the island will find it very difficult to survive.



#coquireport #puertorico #taxact60

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