Economy Guide in Puerto Rico

The Cost of Living Index in Puerto Rico is 63.0 (NYC = 100), indicating moderate costs. Groceries (index: 69.5) and restaurant prices (index: 56.9) are also moderate compared to the NYC baseline.

The Property Price to Income Ratio is 7.4 years, suggesting an affordable housing market. The Rent Index is 21.7, indicating relatively low rental costs compared to NYC.

A Purchasing Power Index of 123.2 (NYC = 100) indicates excellent buying power for residents in Puerto Rico.

Puerto Rico has a progressive personal income tax with a top rate of 33% for incomes over $61,500 (2024). The general Sales and Use Tax (IVU) is 11.5% (10.5% state, 1% municipal), with exemptions for certain essentials. Act 60 offers significant tax incentives, including a 4% corporate tax rate for qualifying export services and exemptions on capital gains, interest, and dividends for eligible new residents.

Puerto Rico offers a thriving entrepreneurial ecosystem with over 500 active startups and significant venture capital investment, including over $520 million in 2022. The island benefits from U.S. federal legal frameworks and tax incentives, fostering growth in sectors like bioscience, technology, and finance.

Puerto Rico offers both public (Medicaid equivalent 'Vital') and private healthcare options, with Medicare available for retirees. Residents are eligible for Social Security Disability Insurance (SSDI) but not Supplemental Security Income (SSI). The public pension system transitioned to a pay-as-you-go model in 2017 due to fiscal challenges.

Deposits in Puerto Rico are protected up to $250,000 per depositor by the Federal Deposit Insurance Corporation (FDIC), as U.S. banking laws apply. The banking sector demonstrated strong profitability and solid capitalization in Q3 2025, with oversight from the Office of the Commissioner of Financial Institutions (OCIF) and the U.S. Federal Reserve System.