Puerto Rico's Caribbean island paradise has been kept a secret by Americans. In comparison to other American cities, it features year-round good weather, a vibrant Hispanic community, and a reduced cost of living. The numerous tax incentive programs in Puerto Rico also offer significant savings. The fact that it can be difficult to avoid driving in Puerto Rico is a drawback, though. Due to the island's inadequate public transportation system, especially outside of San Juan, cars are frequently the only dependable mode of mobility. Immigrants to Puerto Rico who are keen to benefit from Act 60 Export Services or Investor Resident Individual tax benefits face the following conundrum: Should you ship your present vehicle or purchase a new one on the island?
There are a number of factors to take into account in this predicament, including the age and condition of your car as well as its adaptability to Puerto Rico's hot climate and rocky roads. If you were going to buy a new car soon, the time to do so is now. It can be in your best interest to get a brand-new local automobile if you have a fantastic, brand-new car in the United States that you don't want to be harmed in Puerto Rico. Any salt on your car from those salted roads in a northern country with snowy winters could cause corrosion in the future in sunny Puerto Rico. Additionally, if your car has leather seats, you should steer clear of visiting the island because the sun's heat will cause the leather to burn you when you sit down in it. Of course, costs must also be taken into account.
Ship vs. purchase a car in Puerto Rico
First things first: both options will probably cost a lot of money. If you ship, you will also be required to pay an import tax, which is calculated based on the value of the vehicle you are sending. Once you pick up your car in Puerto Rico, there can be unanticipated additional costs. Remember that dealerships import their inventory and charge buyers for shipping when making a transaction. Additionally, you will be responsible for paying Puerto Rico's high sales tax.
Car Shipping
The price of shipping a car to Puerto Rico depends on a number of elements, such as the origin, the carrier, the brand and model of the vehicle, as well as whether you drive the automobile to the port yourself. The average cost of transporting an automobile to Puerto Rico for someone with an Act 60 decree will be between $1000 and $2000. However, the import tax, which may be up to $4,000 or more, is not included in that. Excise taxes that are more appropriate are usually $1,000 or less. Your projected cost can be calculated by adding up these numbers, but bear in mind that Hacienda's pre-import predictions are not always precise. Additional costs, such as a $75 processing fee, may be required locally in Puerto Rico.
Buying a Car
When purchasing a new vehicle at a dealership in Puerto Rico, Americans are frequently taken aback because, in general, any vehicle's price in the US may climb by $2000-$5000. Many Act 60 decree holders agree to pay the hefty import tariff to ship their autos from the United States to the island due to this expensive cost.
There are alternative possibilities if purchasing from a Puerto Rican dealership is out of your price range. You can have a new or used car shipped on your behalf to Puerto Rico by purchasing it from a dealership in the United States, such as one in Miami, or from a private seller.
Clasificados, a well-known classifieds website, is frequently used by people in Puerto Rico to look for used cars. You will need to write the bill of sale yourself, have it notarized, and conduct the entire transaction in Spanish if you decide to buy a used car.
Puerto Rico Car Shipping Process
Even though it might be less expensive, shipping a car to Puerto Rico can be more challenging. You must first get your automobile ready for delivery, which may entail emptying it of everything save a spare tire and a jack or letting the petrol tank get down to less than 25% of its maximum capacity, depending on the company. Be prepared to offer the carrier your title and a specific bank authorization if your vehicle is financed.
Depending on the company you choose and where you start, shipping can take anywhere from five days to two weeks. The most challenging part is managing the maze of red tape that awaits you when your car reaches Puerto Rico's coastline.
Puerto Rico Car Pickup
Getting your automobile back after it has been sent might be challenging. To verify that the "tasación" on a car has been completed, an Act 60 decree holder must first call the appropriate port, ask for the automotive division, and make the request. This is a record made by the authorities who check your car and are in charge of obtaining your import taxes. You should call to confirm when you get the email alerting you that your car has arrived at the port because occasionally people get the email notification before their car has actually arrived.
You must travel to the port and wait in line at the appropriate office to receive your official excise tax document, which is required for the payment of import taxes. Security inside the building may ask for your ID and license so they may make a nametag for you. If your tasación is successful, they will give you your documentation after you come and provide them with your booking number. You have the option to pay in person or online after obtaining the paperwork.
The easiest method of paying is by far online. The only requirement is to register with SURI, which Act 60 Investor Resident Individual decree holders may be familiar with for the contribution tax return they must file for their yearly $10,000 donation, or Act 60 Export Services decree holders may be familiar with for their business taxes. Additionally, you have to pay the bill when it's due. The port employees will guide you through the procedure and give you receipts as proof of payment.
Another option is to pay in person. As soon as you get your paperwork, you can head to Hacienda or, if one is available, a store close to the port for a $75 processing fee. If you go to Hacienda, bring cash and be ready to wait in line for at least an hour. You will receive a payment receipt after making your purchase, which you must bring back to the port to pick up your vehicle after going through security once again.
Return to the port and join the new queue to give the staff your receipt. Once they have confirmed that you have paid your taxes, they will release your car and give you a slip. You may now enter the parking lot, where you must search through numerous vehicles to discover yours. Once you locate your vehicle, your keys will be inside, so as long as the road is clear, you can drive off. You might need to ask the staff for assistance moving other cars if they are in the way. Show the guard your slip when you finally leave the parking lot. At long last, you have access to your car again!
When You Pick up Your Car
When you drive off the cargo lot, the paperwork doesn't stop. Before registering your vehicle, obtain temporary insurance to protect you, and after completing those steps, make sure to obtain your license plate and registration. You will receive a number when you register your vehicle, and it must be renewed every year. It is advised that you apply for a Puerto Rican driver's license after doing everything else.
