What is the CRIM like?
The Centro de Recaudacion de Ingresos Municipales (CRIM) is the agency of the government of Puerto Rico in charge of collecting property taxes. (In addition, it also collects taxes on commercial real estate.) The term "real estate" means houses, buildings, farms and apartments.
How is CRIM's property tax paid?
Generally, when the property has a mortgage, the financial institution is responsible for sending the payment, if any, directly to CRIM. The bank or credit union usually pays this debt from an account known as an "escrow". This account, , is funded by the contributions you make to the mortgage.
When there is no mortgage, CRIM is supposed to send you a semi-annual invoice to your postal address, that is, every 6 months. Therefore, it is important that the agency has your current contact information. Payment to CRIM is required as long as you have not been granted a tax exemption.
What is the exemption for the main residence in Puerto Rico?
In Puerto Rico the main residence is exempt from property taxes up to a certain amount of value. This exoneration or exemption, however, is not automatic, but is usually requested at the time of acquiring the property. The maximum exemption is calculated based on a special formula that dates back several decades. Currently, the exemption is up to $15,000 of the value of the property according to the method used by the CRIM. It is important to note that this value does not equal the market price but rather the internal formula of the CRIM.
For example, a property with a market value of $100,000 is likely to be fully exempt. However, it is important to note that the tax rate varies by municipality, with the average being 10%. This percentage would be the amount payable, if any, when a property exceeds the value assigned under the CRIM's internal formula. In other words, the market value is not the same as the value used by the CRIM to evaluate properties.
However, depending on the town you are in, any excess value of $15,000 will be charged to the owner. In other words, even if you have the principal residence exemption, if you live in a home that is worth more than a certain amount, you will still have to pay.
What is the value of my property as assigned by CRIM?
If you wish to know the value that CRIM assigns to your property, we can process a Certificate of Value, using the Social Security number in whose name the property is registered.
What happens when there is an exempt residence and the owner dies?
It is important to note that even if a residence has already been approved for exemption from the CRIM, it expires when the owner dies. This means that at the time the property is transferred to the heirs, the CRIM will retroactively collect any amount due. Such debt will be for the years prior to the death and will include interest and penalties. It is therefore very important that the Transfer of Inheritance process be initiated as soon as possible. We at Abogado Notario Online will take care of all this.
How can I make sure my primary residence is exempt?
For the principal residence exemption to be applicable, the homeowner must have signed a Tax Exemption Application. Such an application is normally submitted to the CRIM at the time of a sale, particularly when the sale is made through a mortgage. In other words, it is customary for the financial institution to submit the application to the CRIM. However, in those transactions without a mortgage, it is the owner's responsibility to verify that the exemption has been filed. Sometimes, if the application was never filed, we can prepare a Retroactive Waiver Application. For insurance purposes, if you want to know if you have a tax exemption, we can process the Certification of Value indicated above.
What should I do if I buy a second property?
In the event that you purchase a second property, which you will not use as your primary residence, you will need to submit a Change of Ownership Application. This will allow CRIM to make the appropriate calculations on your property tax liability.
Remember that the exemption referred to above is for the primary residence only. Failure to submit a Change of Ownership Application may result in negative consequences. In this case, the agency may charge you not only back taxes but also interest and penalties.
How can I find out my CRIM property number?
CRIM uses a "cadastre" system for the management of real estate in Puerto Rico. This cadastre is equivalent to a database in which a unique number is assigned to each real estate property. To search for your property you can go to the CRIM' s Digital Cadastre. On the other hand, if your property is not registered at CRIM or does not yet have a cadastre number, it is important to register it to avoid fines and penalties. To register or access your account, you can go to crimpr.net.
What services do we offer about CRIM?
We regret that at this time we are not offering services on the CRIM, only general information on this page.