Where do you want to settle down after saying goodbye to the stresses of a long career?

With the rising age of the American workforce, the hunt for the ideal retirement destination is gathering momentum. Frankly, no retirement destination will tick all the right boxes for you. But, retiring in Puerto Rico can come close with a great combination of everything that you may need. 

No wonder, the island is a popular choice for expat retirees with its warm sunshine, blue ocean, and lively environment.

Whether you like a vibrant setting or a peaceful location amidst lush natural beauty, Puerto Rico offers a lot of options to choose from. Plus, if you are looking to save in tax payments, there is hardly any better place to pick.

Why Do People Come to Puerto Rico to Retire?

Note that U.S. citizens do not require a visa to travel to Puerto Rico and there is a large English-speaking community on the island. That said, knowing some Spanish will help you in the less-populated corners of the island.

In fact, many professionals are no longer postponing their retirement until they reach their sixties.

They plan to make the most of life by retiring early. For such people, Puerto Rico offers the choice of pursuing their passion for an adventurous lifestyle without compromising on the quality of life.

For U.S. seniors, the advantages of settling in Puerto Rico after retiring are multiple. If you are wondering whether to retire in Puerto Rico, here is a look at some of the advantages.

Affordability

One reason that makes Puerto Rico such an attractive option for retirees is its low cost of living. The average cost of living and renting on the island is lower than in the rest of the United States. You can save more by picking local products instead of imported groceries which are priced higher.

Even with its rising popularity among digital nomads, the costs are still less than most major cities in the U.S. mainland. Besides, it is less expensive than most other Caribbean island destinations. That leaves you with more money to pursue other interests.

Note that the costs will vary on the location you choose and the facilities that you want. For example, a luxury gated community in Dorado will be more expensive than lesser-known locations like Gurabo.

Warm Climate

Puerto Rico has a tropical marine climate that allows you to soak in sunbeams all throughout the year. The average daily temperatures are around 80-85°F. So, you can forget those winter coats, gloves and scarves. In January and February, expect temperatures to remain in the mid-60s – perfect for hitting the beach.

Geographically, the mountain ranges divide the island into two separate climatic zones. The northern portions have a relatively humid climate while the southern belt is semi-arid.

Between June and November, the island faces the harsh hurricane season, exemplified by the devastating impact of Hurricane Maria in 2017. This risk must be considered when seeking to appreciate the island’s natural beauty.

The wet season is at its peak during August and September with high humidity and frequent rains. At times, the combination of heat and humidity can get intense , but it is nothing that air conditioning can’t handle.

Tax Benefits

Since Puerto Rico is an unincorporated U.S. territory, U.S. citizens need not pay federal taxes from Puerto Rican sources of income, which include income  from capital gains, dividends, and interests. No other country in the world will offer such an incentive.

In addition, the island has enacted two laws to promote foreign investment – Act 20 and Act 22. New residents of Puerto Rico can use these laws to get total exemption from income taxes on the island. Act 22 can help retirees, who live in Puerto Rico for more than 183 days a year, reduce their tax burden by a significant amount.

It is worth mentioning that the sales tax rate of 11.5% in Puerto Rico is on the higher side. The tax on prepared food items is 7%. This makes some food items like sweets and some beverages costlier than those on the U.S. mainland.

Best Places to Retire in Puerto Rico

Time to take a look at some of the best locations for settling down after retirement in Puerto Rico.

Dorado

If you have a sizable nest egg, Dorado can be the best place to settle down after retirement. You will find a whole range of luxury amenities here, along with lovely beaches and golf courses. 

Dorado has a rich history dating back to the colonial Spanish era and there are plenty of museums and other cultural attractions to enjoy. Being 15 miles away from San Juan also ensures you can enjoy the convenience of the capital city. Overall, it perfectly blends the island’s natural beauty with modern luxuries.

Rio Grande

Rio Grande is a town on the east coast of the island and is popular among vacationers as well as retirees. It is a great spot to enjoy the lush beauty of the  El Yunque National Forest and a few lovely beaches. The town has a quaint setting and the luxurious resorts around the town are a prime draw for tropical travelers.

Rio Grande is also a great choice if you are a foodie. The town is famous for its fresh seafood and roadside barbeques. While it is not the cheapest location for buying a property, it has a good neighborhood and is close to all the facilities you will need.

Vieques

The pristine island of Vieques has some of the best beaches in the Caribbean and is a great place to settle down for nature lovers. This is an island where you can enjoy a beach all to yourself. It is also well known for its bioluminescent bay, the Puerto Mosquito Bioluminescent Bay.

Since it is located a few miles off the eastern coastline of Puerto Rico, it is not the best spot to choose if you need to stay close to modern amenities. However, the locals are incredibly friendly, and the small island is also one of the safest locations in Puerto Rico.

Palmas Del Mar

Palmas Del Mar is a luxury residential community that  offers a range of exciting outdoor activities that you can enjoy such as  golf, horseback riding, scuba diving, deep sea fishing, sailing, and more. This upscale neighborhood in  Humacao is around an hour’s drive from San Juan.

Spreading around 2700 acres, Palmas del Mar has a hospital, post office, and school. You can pick luxurious villas, apartments, or townhouses as residential options. Beyond the outdoor activities, the pristine beaches with grand views of the Caribbean Sea are the prime attractions of the spot.  

Luquillo

The small city of Luquillo is famous for its gorgeous beaches with soft sands and crystal clear waters. Many consider the Luquillo Beach as one of the finest in Puerto Rico. 

Beyond that, there is the La Selva Natural Reserve with lovely beaches that are a nesting site for the magnificent leatherback turtles.

You can spend hours walking along the beaches and enjoying the varied beachside dining opportunities. Luquillo has a peaceful residential community with a laid-back vibe and there are multiple property options to choose from. It will take you around 45 minutes to drive to Luquillo from San Juan’s international  airport.

Final Thoughts

With an environment full of sun, sea, and Caribbean flavors, Puerto Rico is a haven for retirees. Even if you do not choose to live around the capital city of San Juan, you will find retirees from the U.S. mainland in every corner of the island.

The process of buying the ideal retirement home in a distant location can be a challenging task. The Colectivo Group is one of the top real estate firms in Puerto Rico and is committed to offering a well-rounded service to its clients. Based on your key requirements, we can help you pin down the best residential communities and find the best deals. 

If you have decided to retire in Puerto Rico, allow us to assist you in selecting the best residential options.