Cost of Living in Puerto Rico. (2023 Updated) (2024)

FAQs

How much money do you need to live comfortably in Puerto Rico? ›

Summary: Family of four estimated monthly costs are 3,366.5$ without rent. A single person estimated monthly costs are 973.2$ without rent. Cost of living in Puerto Rico is, on average, 10.3% lower than in United States.

With the lack of reliable public transport, rising living costs, an 11.5% tax rate on all goods and services, a general lack of hotels offering all-inclusive packages, and the island's political relationship with the US, a visit to Puerto Rico can be a high-priced affair.

1. Rio Marr, Puerto Rico: Affordable, Walkable, and Chill. Consistently rated as one of the best places to live in Puerto Rico, Rio Marr is a stunning place. It's also very affordable, mostly because the area has little nightlife.

Remember this rule of thumb: depending on where you settle on this U.S. territory, you will likely save somewhere between 5% and 70% off the cost of living found in a typical city in the United States. Puerto Rico's smaller cities tend to have an especially low cost of living.

The incentives are particularly attractive to U.S. citizens who move to Puerto Rico because they do not need a residency permit, their Puerto Rico sourced income is exempt from U.S. federal and state income taxes and they get to keep benefits such as Medicare and Social Security.

If you have a low living cost and can supplement your income with a part-time job or a generous pension, then retiring on $3,000 a month is certainly possible.

Moving to Puerto Rico to avoid taxes is just one of countless good reasons to be here. Besides an overall cost of living that is lower than on the mainland, you can enjoy picture-perfect beaches and nature trails, tasty Caribbean treats, convenient shopping, and so much more.

Puerto Rico real property is subject to an annual real property tax. This tax is computed based on property values that date back to the fiscal year 1957–1958 (which was the last time that a general appraisal was conducted by the government).

Cost of Retiring in Puerto Rico

Total monthly expenses should typically be about four times your monthly rent, so you can expect to retire comfortably in Puerto Rico on about $2,000 per month. Even the more expensive parts of the island are still less expensive than most major U.S. cities.

Where do most Americans live in Puerto Rico? ›

Relocating to Puerto Rico

Most expats settle in Puerto Rico's capital, San Juan, or in the south in Ponce, its second-largest city. Carros Públicos (public cars) allow you to travel all over the island and reach even remote areas.

There are multiple nice towns around Puerto Rico to visit and live in, including San Juan, Ponce, Lajas, Cabo Rojo, Maunabo, Isabela, Aguadilla, and Aguada.

“The population was declining, that reduced the tax base for the public sector, which then was unable to provide adequate public amenities. And then this reduction in the quality of public services contributed to further frustration and out-migration.

In most situations, Medicare won't pay for health care or supplies you get outside the U.S. The term “outside the U.S.” means anywhere other than the 50 states of the U.S., the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands.

An approved ESTA for Puerto Rico allows a stay of 90 days with each entry for tourism, transit, or business purposes, and is valid for a total of 2 years from issue, meaning there is no need to re-apply for every trip to US territories.

Puerto Rico is an unincorporated territory of the United States and Puerto Ricans are U.S. citizens; however, Puerto Rico is not a U.S. state, but a U.S. insular area. Consequently, while all Puerto Rico residents pay federal taxes, many residents are not required to pay federal income taxes.

If you move to the island, you can legally pay none. There's also no capital gains tax. You just have to give 4 percent of your income to Puerto Rico. The tax break was started by a Puerto Rican politician who'd watched years of high taxes fail to improve life on the island.

The Federal Reserve also measures median and mean (average) savings across other types of financial assets. According to the data, the average 70-year-old has approximately: $60,000 in transaction accounts (including checking and savings) $127,000 in certificate of deposit (CD) accounts.

If you earned around $50,000 per year before retirement, the odds are good that a $300,000 retirement account and Social Security benefits will allow you to continue enjoying your same lifestyle. By age 55 the median American household has about $120,000 saved for retirement, and about $212,500 in net worth.

What is the average 401k balance for a 65 year old? ›

He noted that residents of Puerto Rico are typically exempt from most federal income, gift, estate and excise taxes, but that they are eligible for Social Security and Medicare.

No need for work permits or visas if you decide to relocate. In other words, living in Puerto Rico is almost like living abroad, but without either the paperwork hassle or the immigration concerns. Because it's a U.S. territory, Puerto Rico also uses the U.S. dollar, which makes banking and finances simple.

U.S. citizens who become bona fide residents of Puerto Rico can maintain their U.S. citizenship, avoid U.S. federal income tax on capital gains, including U.S.-source capital gains, and avoid paying any income tax on interest and dividends from Puerto Rican sources.

Puerto Rico offers many advantages to homeowners, including a lower cost of living, tax benefits, beautiful weather and beaches, and a rich culture. However, there are also potential challenges to be aware of, such as natural disasters, property values, and infrastructure challenges.

CRIM, which stands for "Centro de Racecaudacion de Ingresos Municipales," translates to the Center for Municipal Revenue Collection Center in English. Property owners in Puerto Rico are required to pay their property tax payments in July and January each year.

The portion of the estate reserved for forced heirs in a will is two thirds. In the absence of a will (intestate estate), estate is distributed equally among forced heirs. The portion reserved for forced heirs in a will is reduced to 50%. In the absence of a will, estate is still distributed equally among forced heirs.

Groceries are expensive in San Juan and entire Puerto Rico – many say that this is the most expensive aspect of living in this country.

Can I carry a firearm in Puerto Rico? ›

Open carry is not legal in Puerto Rico. Concealed carry is legal for residents with a Puerto Rico Weapons License (WL) issued under the Puerto Rico Arms Act of 2020 (PRAA) and any license issued previously under Law 404-2000.

US Virgin Islands

The US Virgin Islands are undoubtedly the best Caribbean islands to retire to if you want all the perks of Caribbean life without the hassle of securing a visa. Since this territory belongs to the United States, US citizens need neither a visa nor a passport to visit or reside here.

San Juan is the safest city for tourists in Puerto Rico. Although there are some dangerous areas, it features extensive public transportation, some of the best attractions in Puerto Rico, and beautiful beaches. Taking common precautions should be enough to stay safe.

The most beautiful parts of Puerto Rico include Old San Juan, Ponce, and Arecibo for history lovers. Cities like Manatí, Isabela, Aguadilla, Rincón, Cabo Rojo, Vieques, and Culebra sport the most beautiful natural landscapes and beaches.

Culebra. Flamenco Beach on the Puerto Rican island of Culebra has the most English speakers in Puerto Rico. This island is actually closer to the British Virgin Islands than to the main island and is a former U.S. Naval base.

Dangerous places in Puerto Rico include parts of cities like Carolina, Bayamon, Vega Baja and some San Juan areas like Santurce, La Perla, Parque de la Palomas, and Puerta de Tierra.

Públicos are the cheapest way to travel the island

The cheapest way to get around Puerto Rico is by públicos – public minibuses that run prescribed routes during daylight hours, either between places such as San Juan and Ponce or Mayagüez, or short-haul.

For the small size of Puerto Rico, hurricanes affect the entire island, regardless of the hurricane category. If a hurricane passes far to the north or the south, the outer rainbands might affect only one part of the island, and depending on the route, the west coast might be the safest.

Adjuntas, Puerto Rico has the lowest median household income of any county or county-equivalent in the United States. Per capita income ranges from $24,264 in Guaynabo to $5,943 in Maricao.

Puerto Rico is on an active plate boundary and earthquakes are a common threat. The U.S. Geological Survey noted that the island is nestled between the North American and Caribbean tectonic plates.

What is the problem with the population of Puerto Rico? ›

a significant demographic challenge: the island's population has shrunk by more than 5 percent over the course of a decade. Population loss of this magnitude is not uncommon for regions of the U.S. mainland—indeed, New York, West Virginia, and Wyoming have all seen declines that rival Puerto Rico's recent experience.

Unfortunately, the insurance you have in your home state won't necessarily cover you in Puerto Rico. That's because the island is not a U.S. state. It's a territory, so not all of the rules on the mainland apply here. Healthcare providers here are different, so insurance providers are different too.

Public Healthcare in Puerto Rico

The public healthcare sector in Puerto Rico is generally well managed and is handled via a government-run program. No, healthcare is not free. However, the government provides insurance for those who qualify for the “la Reforma”, a government-funded program.

Healthcare in Puerto Rico is not free. You will need an insurance plan to help cover your medical costs. If you are briefly visiting Puerto Rico, you can continue using your U.S. health insurance, but consider double-checking your coverage before traveling.

Both the CDC and World Health Organization say that Puerto Rico's drinking water is generally safe to drink. Travel advisors expand on that, pointing out that as a territory of the United States Puerto Rico must meet the same standards for drinking water as the States do.

For example, the legal drinking age in Puerto Rico is 18, and for those 18–20 years of age, BAC levels must be lower than . 02. g/dL. In contrast, on the U.S. mainland, the legal drinking age is 21, and for 18–20-year-old drivers, the BAC must be zero.

U.S. phone plans work in Puerto Rico. You'll also find Wi-Fi available at most hotels around the island.

Puerto Rico is an unincorporated territory of the United States and Puerto Ricans are U.S. citizens; however, Puerto Rico is not a U.S. state, but a U.S. insular area. Consequently, while all Puerto Rico residents pay federal taxes, many residents are not required to pay federal income taxes.

The average weekly wage in San Juan was $689 in the third quarter of 2021, a 3.5-percent increase over the year. In the United States, the average weekly wage increased 6.7 percent to $1,251. Among the 343 largest counties in the United States, 333 had over-the-year wage increases.

The term 'resident individual' means an individual who is domiciled in Puerto Rico. It should be presumed that an individual is a resident of Puerto Rico if they have been present in Puerto Rico for a period of 183 days during the calendar year.

Can I collect my Social Security if I live in Puerto Rico? ›

International Programs

If you are a U.S. citizen, you may receive your Social Security payments outside the U.S. as long as you are eligible for them.

You must become a resident of Puerto Rico, and you must reside there for at least 183 days a year, or meet one of several other tests that are less clear cut. Perhaps the hardest overall test to meet—which comes as a kind of overlay on everything else—is the closer connections test.

Puerto Rico has been a U.S. territory since 1898 when the U.S. acquired it at the end of the Spanish-American war. (It also happens to be the most populated U.S. territory!) If you're a U.S. citizen, this means an easy transition for you. No need for work permits or visas if you decide to relocate.

Puerto Rico offers a high quality of life, especially when compared to other countries in the region. The island has a relatively low cost of living, and there are plenty of amenities and services available. For example, Puerto Rico has some of the best hospitals in Latin America.

The economy of Puerto Rico is mainly driven by manufacturing, primarily pharmaceuticals, textiles, petrochemicals, and electronics; followed by the service industry, primarily finance, insurance, real estate, and tourism.

Since the cost of living in Puerto Rico is generally lower than in the United States, the rent is cheaper as well.

Social security contributions

Puerto Rico is covered under the US social security system; consequently, Puerto Rico employers and employees are subject to the US Social Security and Medicare taxes requirements. See the Other taxes section in the United States Individual tax summary for more information.

Because Puerto Rico is a commonwealth of the United States, there are no restrictions on Americans acquiring property on the island.