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Puerto Rican Domicile & Residency

Determining Puerto Rican residency for tax purposes involves understanding the laws and regulations on tax residency established by the government of Puerto Rico.

According to the Puerto Rico Internal Revenue Code, an individual is considered a resident of Puerto Rico for tax purposes if they meet one of the following conditions:

1. They are physically present in Puerto Rico for at least 183 days during the taxable year.
2. They maintain a permanent home in Puerto Rico and they are present in Puerto Rico for at least 183 days during the taxable year.
3. They are present in Puerto Rico for at least 549 days during the three-year period that includes the taxable year and the two immediately preceding taxable years.

Additionally, Puerto Rico has a special provision for “bona fide residents” which allows an individual to be considered a resident of Puerto Rico even if they do not meet the 183-day physical presence test, as long as they meet certain other conditions, such as having a permanent home in Puerto Rico and having a closer personal and economic ties to Puerto Rico than to any other jurisdiction.

To determine residency, the government of Puerto Rico will consider factors such as the location of an individual’s permanent home, the location of their family, and the location of their professional and economic activities.

It is important to note that being physically present in Puerto Rico for 183 days or more during a taxable year, or maintaining a permanent home in Puerto Rico does not automatically make an individual a resident for tax purposes. The individual must also have the intent to make Puerto Rico their home.

Individuals who are unsure of their residency status should consult with a tax professional or the Puerto Rico Department of Treasury for guidance. It’s important to keep in mind that tax laws can change frequently and it’s best to consult with a tax professional who is up-to-date with the current regulations.