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| Puerto Rico has put incentives in place to attract mainland Americans and other foreigners to stay long-term. Real Living Production |
For decades, Puerto Rico has been a beloved, no-passport-needed escape for mainland Americans a place to soak in white sand beaches, warm breezes, and lively culture for a long weekend before heading back to reality. But now the island wants something more. Rather than just courting tourists, Puerto Rico is rebranding itself as a place to live, work, and build a life. And it’s using a mix of tax incentives, new infrastructure, and resort-style residential developments to make that vision possible.
For Charity Kreher, the decision to make the leap was almost impulsive. When her husband was offered a job in Puerto Rico, she had never set foot on the island. Still, she and her husband, along with their two young children, left Tulsa, Oklahoma, for San Juan in November 2024.
“It was like, if we don’t do it, would we be kicking ourselves for not getting out of our comfort zone?” Kreher, 34, recalled.
Nine months later, she says the move has been transformative. The family is more active thanks to Puerto Rico’s temperate climate, nearby beaches, and abundance of hiking trails. They’ve quickly found a welcoming community and even see the possibility that their children might grow up bilingual.
“Some things are different, but you’re not left wanting, like maybe some folks would imagine,” Kreher said.
From Quick Trips to Permanent Moves
Puerto Rico’s appeal as a getaway is undeniable. The island’s capital airport, Luis Muñoz Marín International, saw 6.6 million passenger arrivals in 2024 a record 8% increase from the previous year, according to Discover Puerto Rico. But island leaders have bigger ambitions: they want visitors to stay permanently.
The U.S. territory is small just 3,515 square miles, all of which could fit inside Connecticut and home to about 3.1 million people, roughly the population of Iowa. Between 2022 and 2023, 50,577 Americans moved to Puerto Rico. That number might seem modest, but officials see it as a starting point.
To attract more mainland transplants, Puerto Rico needs to address infrastructure issues that have long been a sticking point. In 2019, the American Society of Civil Engineers gave the island’s infrastructure a “D-” grade, citing poor roads and unreliable energy systems. While cities like Condado, Old San Juan, and Dorado already have amenities like backup generators and cisterns, many areas still lag behind.
For Kreher, who works remotely, reliable power was a non-negotiable one reason she chose a three-bedroom oceanfront apartment in Condado with its own generator. Still, she’s experienced the occasional blackout. “The last time we were at church, the power went out halfway through the sermon,” she said. “But when these things happen, everyone takes it in stride. You wouldn’t believe how frequently the stoplights go out and how we all just know how to handle it.”
Puerto Rico has committed to changing that. The Puerto Rico Energy Public Policy Act, passed in 2019, set a goal of meeting 100% of the island’s electricity needs with renewable energy by 2050. In late 2022, Congress approved $1 billion to strengthen the power grid’s resilience.
Resort Living, Full Time
Part of the island’s strategy is to make everyday life feel like a vacation. New developments are being designed with full-time residents in mind, not just tourists.
Moncayo, a luxury community slated to open in 2027 on the eastern shoreline, will have the golf courses, pickleball courts, and wellness facilities you’d expect at a high-end tropical property but also a farm, a PPK-12 international school, and a medical center.
“There are more and more people who are looking to Puerto Rico not as a weekend getaway or as a second or third home, but as a primary home community and destination,” said Carter Redd, Moncayo’s developer and president.
Other projects are on the way: the Four Seasons Resort and Residences Puerto Rico is scheduled to open in late 2025, just 30 minutes from San Juan’s airport, while the Mandarin Oriental Esencia a residential development on 2,000 acres in the island’s southwest is expected in 2028.
The Tax Advantage
For some newcomers, taxes are the clincher. Puerto Rico isn’t necessarily cheaper than the mainland, but for Americans willing to relocate, Act 60 can be a game-changer. Enacted in 2020, the law offers a 4% income tax rate, a 75% property tax discount, and full exemption from capital gains accrued while living on the island.
Michael McCready, a 56-year-old lawyer from Chicago, moved to San Juan in January. His rent is higher than it was in Chicago, but the lower taxes mean his take-home pay is significantly larger.
“I joke to my wife and say I would live at the North Pole for these taxes,” McCready said. “But it just happens to be an absolutely amazing place to live. Even without the tax benefits, I would still be happy here.”
According to Carlos Fontan, former director at the Office of Incentives for Businesses in Puerto Rico, Act 60 works much like state-level tax incentives used to draw new residents. “We want people in Puerto Rico who can invest in different sectors of the island, create jobs, and create opportunities,” he said.
Tourism accounts for only about 2% of Puerto Rico’s GDP, compared with 43% for manufacturing, according to the Foundation for Puerto Rico’s Economy. Humberto Mercader, former deputy secretary of the Department of Economic Development and Commerce, sees Act 60 as a way to diversify that economic narrative.
“Puerto Rico has a very strong industrial base and an entrepreneurial ecosystem that is sometimes overlooked because of the tourism,” Mercader said. “When you think about attracting long-term residents, you’re talking about bringing people who will bring their businesses here.”
A New Identity for an Old Favorite
Puerto Rico’s pitch to mainland Americans blends lifestyle perks with economic incentives. There are still hurdles infrastructure upgrades, overcoming misconceptions, expanding beyond the most developed areas but the island is betting that a combination of warm weather, vibrant culture, and a lighter tax burden can turn short-term visitors into permanent residents.
For Kreher and McCready, the gamble has already paid off. Both say they came for the opportunity but stayed for the life they’ve built. And if Puerto Rico has its way, more Americans will be making that same choice in the years to come.
