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post #1 of 18 Old 04-16-2019 Thread Starter
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Property Tax on Boat Kept in Puerto Rico

My wife and I are considering locating our catamaran in the Puerto Del Ray marina in Fajardo, Puerto Rico. We will not be full time residents on the boat initially but will spend considerable time on it exploring the USVIs. I'm trying to see what the property tax would be on the boat and haven't had any luck searching except that the rate in Fajardo is 11.5%. Does anyone here keep a boat in Puerto Rico? Is the tax really 11.5% each year?
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post #2 of 18 Old 04-16-2019
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Re: Property Tax on Boat Kept in Puerto Rico

This will be fairly complicated for anyone to answer here. There are three things you need to research. Use Tax, Property Tax and Registration fees.

Whether each applies, will depend on how long the boat is there, where your permanent residence is located and how long you are in Puerto Rico and maybe other factors.

Taking a leap here, if you live elsewhere, but keep your boat there year round, I would expect you to have to navigate Use Tax and Registration fees, but not personal property tax, which is typically owed by residents of jurisdictions. YMMV


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Re: Property Tax on Boat Kept in Puerto Rico

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Originally Posted by sadlerlove View Post
My wife and I are considering locating our catamaran in the Puerto Del Ray marina in Fajardo, Puerto Rico. We will not be full time residents on the boat initially but will spend considerable time on it exploring the USVIs. I'm trying to see what the property tax would be on the boat and haven't had any luck searching except that the rate in Fajardo is 11.5%. Does anyone here keep a boat in Puerto Rico? Is the tax really 11.5% each year?
It is my understanding that in PR "Personal Property Taxes" are payable on business assets only. A boat is "Personal Property" (vs. "Real Property") but if not being used in business, would not be subject to taxation. Other taxes would apply of course, use tax, taxes associated with registration et al. The wise thing to do would be to contact a CPA/accounting service in PR to get an accurate read on the matter.

FWIW...

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Re: Property Tax on Boat Kept in Puerto Rico

Never heard of such a tax. I've never heard of issues in PR like FL, ME and other States have with registrations (and "use tax") payments for hanging around more than 60 days. Enforcement, though, down here can be quite selective.
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Re: Property Tax on Boat Kept in Puerto Rico

Thanks for the comments so far. I think the comment that it only applies to residents and businesses may be correct. Your comments made me dig further-- from the 2017 (latest that is posted) instructions on the CRIM site: "WHO MUST FILE A PERSONAL PROPERTY TAX RETURN: Every natural person or legal entity engaged in an Industry or business which on January 1, 2017 is an owner of personal property is rented to another person or in the possession of such property where the owner is outside Puerto Rico or cannot be located, shall complete and file such return."

I have the page on the CRIM site showing the different rates for each municipality if anyone wants to see them, but I cannot post the link here.

I know the use tax and registration taxes, and they are reasonable: $10,000 max excise/use tax, and a few hundred a year max registration.

So bottom line, unless someone here knows otherwise, it appears as though private property (boats, cars, etc.) owned by resident individuals and non resident individuals are exempt from the personal property taxes.
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Re: Property Tax on Boat Kept in Puerto Rico

sadler-
IIRC Florida also has a misnamed "personal property tax" which is also only levied on the property of a BUSINESS based on what they own on January 1st each year, or something like that. There's nothing "personal" about it. Of course there's a movement in Congress (again) to force statehood on PR, or "liberate" it, so don't make any five-year plans.(G)
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Re: Property Tax on Boat Kept in Puerto Rico

Iíve got some exposure to Puerto Rico. Government there is highly disfunctional and everyone admits it. A board Iím on is rebuilding housing there, post hurricane. Crazy system.

One major point of stress is that, not being a State, PR residents do not pay Federal Income Tax. However, the island receives billions in Federal support, funded by income taxes. There is no requirement that any jurisdiction break even with taxes and receipts. The rub is they only pay Medicare.


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post #8 of 18 Old 04-17-2019
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Re: Property Tax on Boat Kept in Puerto Rico

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I’ve got some exposure to Puerto Rico. Government there is highly disfunctional and everyone admits it. A board I’m on is rebuilding housing there, post hurricane. Crazy system.

One major point of stress is that, not being a State, PR residents do not pay Federal Income Tax. However, the island receives billions in Federal support, funded by income taxes. There is no requirement that any jurisdiction break even with taxes and receipts. The rub is they only pay Medicare.
Really, not a lot more "dysfunctional" than Stateside, from whence they take their cues, but admittedly a lot more open about it. And pretty hefty taxes to the PR government. As well as FICA (or SE Tax) to the IRS Stateside, just like the Virgin Islands. Just not the Federal income tax, but it's pretty much made up in PR taxes, and all the V.I. is is a "mirror" tax system. File a 1040VI, pay your SS taxes and Medicare, etc. Stateside (or your SE tax). 15.41% (or something like that) from every dollar of earned income goes to Uncle Sugar.

Last edited by VIEXILE; 04-17-2019 at 02:59 PM. Reason: add
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Re: Property Tax on Boat Kept in Puerto Rico

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And pretty hefty taxes to the PR government.
Exactly, which would have to decline, should statehood be adopted. Presumably, the federal government would assume some of the programs and cost. However, the local government officials would be neutered, to a degree, and thatís the rub.

Puerto Rico should be a national treasure. It has everything from history to culture to food, coffee, beaches, rainforests and scenery.

Itís original military and trade center value has all but disappeared, so it needs a new purpose. Tourism could be increased 10 fold, but not with all the negativity and corruption. It has the foundation to be a paradise.


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Re: Property Tax on Boat Kept in Puerto Rico

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Exactly, which would have to decline, should statehood be adopted. Presumably, the federal government would assume some of the programs and cost. However, the local government officials would be neutered, to a degree, and that’s the rub.

Puerto Rico should be a national treasure. It has everything from history to culture to food, coffee, beaches, rainforests and scenery.

It’s original military and trade center value has all but disappeared, so it needs a new purpose. Tourism could be increased 10 fold, but not with all the negativity and corruption. It has the foundation to be a paradise.
'Ol GWB pretty much put the kaibash to the military base at Rosy Roads and "taught those 'Rican's a lesson" after they complained about a civilian observer getting blown to smithereens in an observation tower on Vieques back around 2003 along with the Navy's wholly unnecessary use of depleted uranium rounds when they blew the crap out of the island for practice - with civilians in the middle of the island and gunnery and bombing ranges on E and W ends. You know the ship that you can see the outline of in the Bimini Atoll nuke tests? The Navy towed it all the way from the S. Pacific, through the canal and bombed the **** out of it on the East End of Vieques. Heavily irradiated. There's no accounting for stupidity.

Look at Roosevelt Roads on Google Earth. It could have been some form of housing, etc., but the Navy just abandoned it and let it go to hell.

Last edited by VIEXILE; 04-17-2019 at 03:18 PM. Reason: add
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