What CRIM is, how the tax is calculated, the primary-residence exemption, and the mistakes that cost money when buying or inheriting property.
CRIM (the Municipal Revenue Collection Center) is the agency that administers real property tax in Puerto Rico — the local equivalent of property tax. Understanding it saves you scares when buying, and money every year as an owner.
How the tax works
The tax is calculated on a CRIM valuation (historically based on values far older than today's market, so it's usually much lower than the purchase price) and the rate varies by municipality. That's why two same-priced homes in different towns can pay different taxes.
The primary-residence exemption
If the property is your primary residence, you can apply for the tax exemption — which in many cases reduces the bill to zero or nearly zero. It's a filing that a huge number of owners never make, overpaying for years. When you buy your home, make this one of your first errands.
The mistakes that cost money
- ✓Buying without checking CRIM debts: debts follow the property, not the previous owner
- ✓Not registering improvements or new structures — and facing accumulated charges later
- ✓Not applying for the primary-residence exemption when entitled to it
- ✓Inheriting a property and leaving valuation and title outdated for years
Ready for the next step?
Talk to Kelvin