Dear Friends and Valued Clients,
Recently, we’ve received questions about the two-year Puerto Rico principal residence purchase requirement for Resident Individual Investor (RII) grants under Act 60.
Why this matters.
This is a core condition of RII grants. If you don’t acquire a qualifying principal residence within two years of approval, the grant may be treated as null and void ab initio as if it never existed.
Are extensions possible?
Act 60 and the Incentives Regs only contemplate an extension to the requirement in one narrow construction scenario: you purchased land, are actively building your principal residence there, and construction is not finished within the initial two-year period. In that case, you may request up to two additional years for just cause to complete construction.
Outside of that, there is no automatic right to extend the deadline under Act 60 or its regulations.
In practice, the Office of Incentives (OI) has occasionally granted extensions (outside of the construction scenario) by approving amendments filed before the deadline with strong documentary evidence (e.g., long-term lease with option to purchase, documented good-faith efforts, financing denials, market delays, etc.). In those cases, the approval has been discretionary, not guaranteed.
How strict is enforcement?
This requirement has been enforced strictly by the Incentives Office. In some cases, grantees have ultimately had to surrender their grants after missing the two-year home-purchase deadline, even after requesting an extension and arguing just cause.
Our recommendation is to always plan as if the deadline is non-negotiable.
What should you have in place by the deadline?
You should have at least one of the following:
• BEST: a fully executed deed of purchase for a qualifying Puerto Rico principal residence.
• AT MINIMUM: a binding, non-refundable purchase agreement (or option) clearly obligating you to close on a qualifying property.
Throughout the two-year period, document everything:
• Properties reviewed, offers made, and negotiations.
• Communications with brokers, sellers, and lenders.
• Financing, appraisal, title, or market obstacles (potentially supporting a just cause).
This record is essential if you must seek an amendment before the deadline.
What if your timing is tight?
If it starts to look tight:
- Flag it early, well before the two-year deadline.
- Assemble a clear timeline and supporting documents showing continuous, good-faith efforts to purchase.
- Prepare an amendment request before the deadline, articulating “just cause” with as much concrete evidence as possible.
Even then, approval isn’t assured. The practical takeaway: treat the two-year purchase requirement as a hard deadline, not as a flexible target.
The two-year deadline won’t pause. The clock is running.
Book a RII home purchase requirement deadline review on our website: https://taxlawandventureservices.cliogrow.com/book/fc69531dea813d28b33391e016052ea6
Leave with a clear, actionable plan and peace of mind.