Puerto Rico is a small island paradise in the Caribbean. Luckily for United States citizens, this beautiful place is a United States territory. Americans can visit easily without the hassle of passports.
However, what if Puerto Rico’s charm has won you over to the point of considering it as your new home? There are many variables to consider before packing your bags.
In this updated 2023 version of our cost of living in Puerto Rico article, we delve into various aspects including transportation, groceries, and childcare costs, all aimed to give you a comprehensive picture of what living in Puerto Rico could look like financially.
We’ve also investigated changes in healthcare costs and the current real estate market. Updated tax laws for prospective residents are also discussed. Let’s jump right in!
Cost of Living in Puerto Rico in USD
Internet and Utility Expenses
In Puerto Rico in 2023, utilities such as electricity, heating, cooling, water, and garbage, average around $200 per month. Internet expenses, crucial for connectivity in today’s digital world, typically stand at approximately $60 monthly.
These costs are generally on par with mainland U.S. rates. Please note, these figures represent averages and actual expenses may vary based on usage and specific locations.
High energy consumers and those demanding top-tier internet speeds may see increased costs. Overall, planning for about $260 monthly should cover the average internet and utilities costs in Puerto Rico.
Cost of Transportation
Transportation in Puerto Rico in 2023 varies in cost. Owning a car can be costly with gasoline prices around $3.30 per gallon. Car insurance and maintenance also add to the expenses. However, public transportation like buses and trains is affordable and well-utilized, costing approximately $1-$2 per journey.
Taxis and ride-sharing services are also available, though costs can add up quickly. If you choose to drive, budget for gas and maintenance; if you rely on public transit, expect lower costs. Therefore, transportation expenses in Puerto Rico largely depend on your personal preferences and lifestyle.
Ubers usually respond within ten minutes and can cost around $20 to drive around San Juan. San Juan is also home to the Tren Urbano (Urban Train), with sixteen stops along its ten-mile pathway. The Tren Urbano costs about USD 1.50 for a ride.
However, if you are looking to purchase a car instead of using public transportation or other means to get around, it is helpful to know that the average cost of buying a car in Puerto Rico is $2000 – $5000 higher than prices in the US.
Due to this fact, many residents choose to utilize the popular Puerto Rican classifieds site Clasificados to purchase used vehicles from private owners. Another budget friendlier option is to purchase a car from a dealer somewhere closer to the island, such as Miami, and have it shipped to Puerto Rico from there, including the shipping costs in the overall sale deal of the car.
Groceries / Cost of Food
In Puerto Rico in 2023, the cost of groceries can be higher than in some parts of the U.S. mainland due to the need for importing many goods. A regular grocery run for a single person might cost between $50-$75 weekly, depending on dietary preferences.
Dining out varies with a meal at a mid-range restaurant typically costing around $20-$30 per person. Keep in mind these are averages and actual costs can fluctuate based on personal consumption and chosen outlets. In essence, be prepared to budget a little more for food in Puerto Rico compared to some mainland states.
When shopping for essential grocery items in Puerto Rico, you may notice a price increase when compared with other places on the mainland. This is because, according to one study, grocery prices are 25.4% higher than stateside locations.
How much is a Coke in Puerto Rico?
As of 2023, the cost of a can of Coca-Cola in Puerto Rico is approximately $1.50 in grocery stores. In restaurants and cafes, the price may rise to around $2.50 per can or glass, depending on the establishment. These prices are slightly higher than the average on the U.S. mainland, primarily due to import costs.
Dining Out
In Puerto Rico, the cost of dining out can offer a range of experiences and associated prices. A meal at an inexpensive restaurant might cost around $10-$15, while a three-course meal for two at a mid-range restaurant could set you back about $50-$70.
Fast food options are similar to U.S. mainland prices, typically around $7-$10. Of course, upscale dining will be pricier. These costs reflect averages, but exact prices will vary by location and restaurant choice. Thus, dining out in Puerto Rico can cater to both budget-conscious eaters and those willing to splurge on culinary delights.
Street food will cost $5 – $10 for high-quality eats, but it is recommended to stay away from the cruise ships, where prices tend to be upwards of $40 per person. A 15 – 20% tip is normal when dining in Puerto Rico.
Clothing Cost
The cost of clothing in Puerto Rico in 2023 is comparable to mainland U.S. prices. A pair of good quality jeans, such as Levi’s, will typically cost around $50. A summer dress from a chain store like Zara or H&M may run you about $40.
For footwear, a pair of quality running shoes like Nike can be expected to cost approximately $80-$100. While these prices reflect the average costs, they can fluctuate depending on the specific brand, quality, and outlet.
Remember, while Puerto Rico offers a tropical climate, clothing costs can still be a relevant part of your budget planning.
Childcare Cost
In 2023, childcare costs in Puerto Rico depend greatly on the type and duration of the care. For full-time childcare in a private nursery or preschool, you might expect to pay between $400-$600 per month. Babysitting services can vary, but average around $10-$15 per hour.
It’s important to note that costs can fluctuate based on specific locations and the quality of care. Thus, families with young children should factor these potential costs into their budget when considering the overall cost of living in Puerto Rico, just as they would in any location.
Rent in Puerto Rico
Great news for prospective residents – rent in Puerto Rico is, on average, much cheaper than in the mainland. The average monthly cost for a studio space is $384. One bedrooms in the city center of San Juan are about $500 – $600 per month.
Rent in Puerto Rico in 2023 varies based on location and the type of housing. A one-bedroom apartment in the city center averages around $900 per month, while the same outside the city center drops to about $600 per month.
A three-bedroom apartment in the city center may cost around $1,500 per month, with similar decreases in outer areas. These prices reflect averages; specific rents can differ substantially based on exact location, apartment condition, and amenities. Keep in mind that rent will likely be one of your most significant expenses while living in Puerto Rico.
Entertainment Cost
Entertainment costs in Puerto Rico in 2023 can vary widely based on personal preferences. For movie enthusiasts, a cinema ticket averages around $10. A monthly gym membership is about $30-$40.
Nature lovers can enjoy the island’s beaches and hiking trails mostly for free. Nightlife and dining out vary, with a cocktail at a downtown club costing around $10, and a pint of beer around $3-$5. Music events, cultural festivities, and outdoor activities range in cost.
Remember, while Puerto Rico offers a vibrant entertainment scene, your costs will depend largely on your lifestyle and entertainment choices.
Healthcare Cost
Healthcare costs in Puerto Rico in 2023 are on par with mainland U.S. For private health insurance, individuals can expect to pay around $200-$300 monthly, depending on the plan. Doctor visit copays range from $20-$40.
Prescription medication costs vary widely based on the medication. Emergency services are usually covered by insurance but may incur extra charges. Keep in mind, these are average costs and actual expenses can fluctuate based on your specific healthcare needs and insurance coverage.
Thus, budgeting for healthcare is an important part of living cost considerations in Puerto Rico.
Sample Budget
A sample monthly budget for living in Puerto Rico in 2023 might look like this:
- Rent for a one-bedroom apartment in the city: $900
- Utilities (electricity, water, garbage, cooling): $200
- Internet: $60
- Groceries: $200-$300
- Dining out (occasionally): $100
- Transportation (public transport / gas for car): $100
- Health Insurance: $250
- Entertainment: $100
- Clothing: $50
- Childcare (if applicable): $500
This budget totals to approximately $2,060 – $2,160 per month. Remember, this is a generic budget and actual costs can vary depending on personal lifestyle choices and specific circumstances.
Real Estate Prices In Puerto Rico
How much does a house cost in Puerto Rico?
The cost of houses in Puerto Rico in 2023 varies greatly depending on location, size, and condition. In urban areas or popular tourist destinations, the price range for a house can be higher compared to rural or less sought-after locations. On average, a modest two-bedroom house can range from $150,000 to $300,000.
Larger or more luxurious properties can cost significantly more. It’s essential to conduct thorough research and work with a reputable real estate agent to find the right property within your budget. Remember, these prices are approximate and subject to change based on market conditions.
Taxes
Income Tax
Puerto Rico is an unincorporated territory of the United States, and as such, it is considered an insular area. Due to the nature of the island’s relationship with the United States, all Puerto Rican residents pay federal taxes. However, many residents are not required to pay income taxes.
The only residents in Puerto Rico who need to pay federal income tax are:
- federal government employees,
- members of the military,
- people with income sources that do not originate on the island,
- individuals and companies who do business with the federal government, and
- Puerto Rican corporations that intend to transfer funds to the United States.
VAT Tax
Puerto Rico has a Sales and Use Tax of 11.5% – although legislators tried to pass VAT taxation in 2015, the effort was eventually struck down. A portion of these taxes (10.5%) goes to the Commonwealth of Puerto Rico, and 1% goes to municipalities.
Real Estate and Service Tax
Real estate taxes in Puerto Rico – taxes like the property tax – are on average similar to the rates you’d find in the mainland. These taxes, in Puerto Rico, range from 8.03% to 11.83% per year for personal property.
Goods and Service Tax
Puerto Rico does not have a good and service tax. Instead, these taxes are nestled under the aforementioned Sales and Use Tax of 11.5%. A portion of these taxes (10.5%) goes to the Commonwealth of Puerto Rico, and 1% goes to municipalities.
Retirement Tax
There are many tax benefits for residents living in Puerto Rico. Income sourced in Puerto Rico is excluded from additional United Stated federal tax. Other friendly tax regulations make Puerto Rico a great place to retire. This includes Puerto Rico’s Act 22. Under this act, some Puerto Rican residents are exempted from all taxes on capital gains, interest, and dividends. People who reside in Puerto Rico more than 183 days out of the year qualify.
Pension, 401k, and IRA incomes receive a tax of 4%. No federal tax at all.
Inheritance laws in Puerto Rico
One might think that because Puerto Rico is considered a part of the United States, inheritance laws would be fairly similar. That may be the case, but there are certain distinctions to keep in mind regarding Puerto Rican inheritance laws.
Forced Heirs
Forced heirs refer to the fact that children, grandchildren, or direct descendants are 100% guaranteed a portion of the inheritance in certain areas.
Puerto Rico Laws Operate By Thirds
In Puerto Rico, one-third of the inheritance is split between the forced heirs. Another third is distributed according to the person’s wishes leaving the inheritance. The final third gets distributed to whomever the person leaving the inheritance deems fit. This process is distinctly different from the ordinary laws found in the mainland.
Puerto Rican Law governs any Left Real Estate
Whether the owner was Puerto Rican or a foreigner, real estate is subject to Puerto Rico real estate law. Puerto Rican courts always govern the inheritance of real estate.
The Average Income In Puerto Rico
The average income in Puerto Rico in 2023 can vary based on various factors, including occupation and location. However, it is important to note that Puerto Rico’s average income is generally lower compared to the mainland United States. As of 2023, the average monthly salary in Puerto Rico ranges from $1,500 to $2,000.
It’s crucial to consider this income level when budgeting for living expenses. Keep in mind that individual circumstances and professions can significantly influence one’s earning potential. It’s advisable to research specific industries and job opportunities to gain a better understanding of potential income in Puerto Rico.
Immigration Costs
Because Puerto Rico is a United States territory, there are no immigration costs similar to those you’d face if you were moving to a different country. However, certain travel-associated charges can add up when you consider the move to Puerto Rico. Here is a couple of them.
- For a one-way ticket, flight costs can be $400 – $800 total in cost.
- Moving Expenses. Depending on the declared value of your goods, and the method by which you choose to ship them, costs can be $1000 + to get your stuff to Puerto Rico.
According to some estimates, the average cost of moving to Puerto Rico from the mainland is about $12,500.
Can I use USD in Puerto Rico?
The United States dollar is the currency used in Puerto Rico.
How much cash can I bring into Puerto Rico?
When traveling to Puerto Rico, there are regulations regarding how much cash you can bring into the country. As of 2023, there is no limit on the amount of cash you can bring, but it’s important to declare amounts over $10,000 to customs officials upon arrival.
This requirement applies to both U.S. citizens and foreigners. However, it is advisable to carry only the amount necessary for your immediate needs and use other secure forms of payment such as credit cards or traveler’s checks.
Remember to consult with your local financial institution or check the latest travel advisories for any updates or changes to these regulations.
How much to live comfortably in Puerto Rico?
Considering the various factors, we’ve outlined for a budget in Puerto Rico – things like childcare, rent, entertainment, and utilities – it’s clear that a budget of about $1600 would fit most people’s needs. However, if you want to live a bit more comfortably, aiming for $2000 – $2500 per month in terms of income might be a more pleasant range.
How much do you need to retire in Puerto Rico?
The cost of retiring in Puerto Rico is the same as comfortably on the island. About $2000 – $2500 per month.
Wrap Up
Puerto Rico is certainly a bright, sunny, warm, and inimitable place to live. To build a budget for a three-person family with a young child, you only need about $1500. This includes all utilities, internet, entertainment, childcare, groceries, and rent.
Homes in Puerto Rico cost less than their mainlander counterparts, and retiring in Puerto Rico provides certain tax benefits – as long as you are a resident on the island for 183 days out of the year.
There are a few things to remember about inheritance law in Puerto Rico, and keeping those things in mind will assist you as you work out your inheritance on the island. Because Puerto Rico is a United States territory, it uses USD as a currency, and there are no immigration costs. Puerto Rico may just be the right choice for you!
Related: 17 Pros and Cons of Living in Puerto Rico
Related: 7 Best Places to Live in Puerto Rico and 3 Places to Avoid
