Puerto Rico (U.S.) Economy Profile - Doing Business 2019
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Doing Business 2019 Puerto Rico (U.S.)
Economy Profile
Puerto Rico (U.S.)
Page 1
Doing Business 2019 Puerto Rico (U.S.)
Economy Profile of Puerto Rico (U.S.)
Doing Business 2019 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as
well as post-filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2019 Puerto Rico (U.S.)
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2019 Puerto Rico (U.S.)
Ease of Doing Business in DB 2019 Rank
Region Latin America & Caribbean
190 1
Puerto Rico (U.S.)
Income Category High income 64
DB 2019 Ease of doing business score
Population 3,337,177
0 100
City Covered San Juan 69.46
DB 2019 Ease of Doing Business Score
0 100
82.75: United States (Rank: 8)
72.09: Mexico (Rank: 54)
69.46: Puerto Rico (U.S.) (Rank: 64)
67.47: Jamaica (Rank: 75)
61.12: Dominican Republic (Rank: 102)
58.97: Regional Average (Latin America & Caribbean)
Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies
in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100
represents the best performance. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Puerto Rico (U.S.)
3
1 10
28
53
55 67 63
82 88
Rank
110
109
136 141
159 162
163
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Ease of Doing Business Score on Doing Business topics - Puerto Rico (U.S.)
100 95.00
91.23
81.86 83.32
80 73.43
61.82
59.38
Score
60
52.42
50.00
46.14
40
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2019 Puerto Rico (U.S.)
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited
liability company to start up and formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10
and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two
types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the
other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a
business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the
a company (number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
• Preregistration (for example, name verification or
reservation, notarization)
The business:
• Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type
city
of limited liability company in the economy, the most common among domestic firms
• Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation
registration, company seal) lawyers or the statistical office.
- Operates in the economy’s largest business city. For 11 economies the data are
• Obtaining approval from spouse to start a
business or to leave the home to register the also collected for the second largest business city.
company - The entire office space is approximately 929 square meters (10,000 square feet).
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
• Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least
company registration and operation or national 100 times income per capita.
identification card
- Performs general industrial or commercial activities, such as the production or sale
of goods or services to the public. The business does not perform foreign trade
Time required to complete each procedure
activities and does not handle products subject to a special tax regime, for example,
(calendar days)
liquor or tobacco. It does not use heavily polluting production processes.
• Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the
information amount of the annual lease for the office space is equivalent to the income per
capita.
• Each procedure starts on a separate day (2
procedures cannot start on the same day) - Does not qualify for investment incentives or any special benefits.
- Has at least 10 and up to 50 employees one month after the commencement of
• Procedures fully completed online are recorded operations, all of whom are domestic nationals.
as ½ day - Has a company deed that is 10 pages long.
• Procedure is considered completed once final
document is received The owners:
• No prior contact with officials - Have reached the legal age of majority. If there is no legal age of majority, they are
assumed to be 30 years old.
Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record.
income per capita) - Are married and the marriage is monogamous and registered with the authorities.
- Where the answer differs according to the legal system applicable to the woman or
• Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the
• No professional fees unless services required by answer used will be the one that applies to the majority of the population.
law or commonly used in practice
Paid-in minimum capital (% of income per
capita)
• Funds deposited in a bank or with third party
before registration or up to 3 months after
incorporation
Page 5Doing Business 2019 Puerto Rico (U.S.)
Starting a Business - Puerto Rico (U.S.)
Standardized Company
Legal form Limited Liability Company
Paid-in minimum capital requirement USD 0
City Covered San Juan
Indicator Puerto Rico Latin America OECD high Best Regulatory
(U.S.) & Caribbean income Performance
Procedure – Men (number) 6 8.2 4.9 1 (New Zealand)
Time – Men (days) 5.5 28.5 9.3 0.5 (New Zealand)
Cost – Men (% of income per capita) 1.3 37.8 3.1 0.0 (Slovenia)
Procedure – Women (number) 6 8.2 4.9 1 (New Zealand)
Time – Women (days) 5.5 28.5 9.3 0.5 (New Zealand)
Cost – Women (% of income per capita) 1.3 37.8 3.1 0.0 (Slovenia)
Paid-in min. capital (% of income per capita) 0.0 1.5 8.6 0.0 (117 Economies)
Figure – Starting a Business in Puerto Rico (U.S.) and comparator economies – Ranking and Score
DB 2019 Starting a Business Score
0 100
97.35: Jamaica (Rank: 6)
91.23: Puerto Rico (U.S.) (Rank: 53)
91.23: United States (Rank: 53)
85.94: Mexico (Rank: 94)
83.44: Dominican Republic (Rank: 117)
79.40: Regional Average (Latin America & Caribbean)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores
are the simple average of the scores for each of the component indicators.
Page 6Doing Business 2019 Puerto Rico (U.S.)
Figure – Starting a Business in Puerto Rico (U.S.) – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
1.4
5
1.2
Cost (% of income per capita)
4 1
Time (days)
0.8
3
0.6
2
0.4
1
0.2
0 0
1 2 3 4 5 6
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2019 Puerto Rico (U.S.)
Details – Starting a Business in Puerto Rico (U.S.) – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Check the uniqueness of the company name and register online to obtain a Less than one day USD 250
business certificate (online procedure)
Agency : Corporate Registry (Registro de Corporaciones y Entidades) of the
Puerto Rico Department of State
Each company must be registered at Puerto Rico Department of State. The
General Corporations Act (Act No. 164 of 2009) provides online application for
company’s Certificate of Incorporation (found online here:
https://prcorpfiling.f1hst.com/).
The certificate of organization generally sets forth the company’s business
purposes, the address of registered office, the number in each authorized class,
and the rights of stockholders in each of these classes. If all documents are duly
filed, the corporation could be formed and incorporated and start operations the
same day.
The minimum fee for incorporation of an LLC is USD 250.
2 Apply for an employer identification number (EIN) 1 day no charge
Agency : Internal Revenue Service of the United States and the Puerto Rico
Department of Treasury
The employer must apply for an employer identification number (EIN) with the U.
S. Internal Revenue Service. Upon receipt of the EIN, the employer must submit
the EIN to the Puerto Rico Treasury Department (using Form 4809), and each
employee must complete Form 499-R-4 for Puerto Rico tax withholding.
3 Apply for a municipal business license (patente municipal) 1 day no charge
Agency : Municipality
Within 30 days of commencing operations, any person (natural or juridical) must
apply for a municipal business license in the municipality where the company will
conduct business. The law exempts the company from paying tax during the first
semester of operation (January 1st to June 30th or July 1st to December 31th).
Upon request and compliance with certain requirements, the Company will be
issued a provisional license.
Commonwealth of Puerto Rico law establishes the right of every municipality to
impose and collect municipal license taxes (patentes municipales) based on the
volume of business of up to 5% of gross sales. Most for-profit activities that
generate revenues in excess of USD 5,000 per year are covered.
4 Request unemployment and disability account numbers 1 day no charge
Agency : Puerto Rico Department of Labor and Human Resources
Unemployment insurance tax is administered by the Commonwealth of Puerto
Rico Department of Labor and Human Resources. Temporary disability
insurance may be obtained privately, and proof of such insurance should be filed
with the Department of Labor.
5 Subscribe to a workmen’s insurance policy 1 day no charge
Agency : Private Insurer
Workers' compensation insurance is provided by the State Insurance Fund
Corporation (Corporación del Fondo de Seguro del Estado). Insurance premiums
vary with the type of business activity.
Page 8Doing Business 2019 Puerto Rico (U.S.)
6 File an application to get the Merchant Certificate 1 day no charge
Agency : Puerto Rico Treasury Department
All merchants seeking to engage in a trade or business in Puerto Rico must
register with the Registry of Businesses at the Puerto Rico Treasury Department
at least 30 days prior to commencing business operations.
The Certificate of Registration issued by the Treasury Department must be
placed in a location at the trade or business that is visible to the general public.
As of October 15, 2016, existing merchants are required to update the Merchant
Registry in SURI (the Department of the Treasury's web-based application). All
existing merchants are required to update their Merchant Registry on or before
November 20, 2016, before the due date of the first IVU (Sales Tax) Return.
Commencing on October 31, 2016, SURI is the only digital tool that existing and
new mechants will be able to use to carry out all their transactions of the IVU
(Sales Tax) that were previously carried out through PICO and other sub-
systems of the Department of the Treasury.
New merchants who register for the first time between October 15 and 28, 2016,
must do so through the Treasury website under the IVU tab, Merchant
Registration section. After said date, the new merchants must update its
registration in SURI. Commencing on October 31, 2016, new merchants must
register in SURI.
Takes place simultaneously with previous procedure.
Page 9Doing Business 2019 Puerto Rico (U.S.)
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in May 2018. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
largest business city. For 11 economies the data are also collected for the second
• Submitting all required notifications and receiving largest business city.
all necessary inspections
- Is 100% domestically and privately owned; has five owners, none of whom is a
• Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage the local association of architects or engineers. BuildCo is not assumed to have any
other employees who are technical or licensed experts, such as geological or
• Registering and selling the warehouse after its
completion topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure upon its completion.
(calendar days)
The warehouse:
• Does not include time spent gathering
information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
• Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
though procedures that can be fully completed
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
online are an exception to this rule
929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
• Procedure is considered completed once final warehouse is valued at 50 times income per capita.
document is received - Will have complete architectural and technical plans prepared by a licensed
architect. If preparation of the plans requires such steps as obtaining further
• No prior contact with officials
documentation or getting prior approvals from external agencies, these are counted
Cost required to complete each procedure (% of as procedures.
income per capita) - Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
• Official costs only, no bribes
The water and sewerage connections:
Building quality control index (0-15)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
• Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
• Quality control before construction (0-1) no sewerage infrastructure, a septic tank in the smallest size available will be
installed or built.
• Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
• Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
• Liability and insurance regimes (0-2) gallons) a day.
• Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 10Doing Business 2019 Puerto Rico (U.S.)
Dealing with Construction Permits - Puerto Rico (U.S.)
Standardized Warehouse
Estimated value of warehouse USD 963,465.90
City Covered San Juan
Indicator Puerto Rico Latin America OECD high Best Regulatory
(U.S.) & Caribbean income Performance
Procedures (number) 22 15.4 12.7 None in 2017/18
Time (days) 165 199.0 153.1 None in 2017/18
Cost (% of warehouse value) 6.9 3.2 1.5 None in 2017/18
Building quality control index (0-15) 12.0 8.9 11.5 15.0 (3 Economies)
Figure – Dealing with Construction Permits in Puerto Rico (U.S.) and comparator economies – Ranking and Score
DB 2019 Dealing with Construction Permits Score
0 100
77.88: United States (Rank: 26)
70.71: Jamaica (Rank: 76)
70.42: Dominican Republic (Rank: 80)
68.62: Mexico (Rank: 93)
63.48: Regional Average (Latin America & Caribbean)
59.38: Puerto Rico (U.S.) (Rank: 141)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with
construction permits. These scores are the simple average of the scores for each of the component indicators.
Figure – Dealing with Construction Permits in Puerto Rico (U.S.) – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
6
160
140 5
Cost (% of warehouse value)
120
4
Time (days)
100
80 3
60
2
40
1
20
0 0
1 *2 *3 *4 *5 *6 *7 *8 *9 * 10 11 * 12 * 13 14 15 16 17 18 19 20 21 * 22
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 11Doing Business 2019 Puerto Rico (U.S.)
Figure – Dealing with Construction Permits in Puerto Rico (U.S.) and comparator economies – Measure of Quality
15
13.0
12.0 12.0 11.7 11.2
Index score
10 8.9
5
0
Puerto Rico (U.S.) Dominican Republic Jamaica Mexico United States Latin America & Caribbean
Details – Dealing with Construction Permits in Puerto Rico (U.S.) – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Request recommendations and determination of environmental compliance 60 days USD 400
from the San Juan Permits Office- Municipality
Agency : Permitting Office of the Autonomous Municipality of San Juan
BuildCo must submit a request to obtain environmental recommendations (REA)
at the San Juan Permits Office. The office will send its final recommendations to
OGPe who would then issue the environmental recommendations approval. This
procedure is a prerequisite for obtaining the final occupancy permit.
2 Request and follow up to obtain recommendations from Natural and 60 days USD 100
Environmental Resources Department
Agency : Office of Permits Management (OGPe) - Natural and Environmental
Resources Department
BuildCo must obtain recommendations from the different agencies, which would
be centralized by the Office of Permits Management (OGPe). After having
received all the requests, OGPe would process each recommendation with the
relevant agency and will notify BuildCo when all of them have been compiled.
As this is a transition process, many companies still make several visits, calls
and follow-ups with the OGPe to obtain their final recommendations. Additionally,
these recommendations are still filled by many architects at different times,
increasing the cost they need to pay (USD 100.00 for each request).
When the process is fully implemented, it is expected that only one request for all
recommendations would be necessary and each agency would have a maximum
time limit to reply. At the end, BuildCo will receive its recommendation document
via email.
3 Request and follow up to obtain recommendations from Puerto Rico 60 days USD 100
Aqueduct and Sewer Authority (PRASA)
Agency : Office of Permits Management (OGPe) - Puerto Rico Aqueduct and
Sewer Authority (PRASA)
BuildCo. requests and obtains recommendations from the utilities company.
4 Request and obtain preliminary development parameters "consulta de 30 days USD 100
construccion" from the San Juan Permits Office
Agency : Permitting Office of the Autonomous Municipality of San Juan
Prior to filing the construction permit application, BuildCo must file a Preliminary
Development Application/"Anteproyecto" Application with the San Juan Permits
Office. San Juan is an autonomous municipality and for this reason, certain
approvals must be requested with the San Juan Permits Office rather than with
the Office of Permits Management (OGPe).
This filing is required to determine whether the project, as planned, complies with
zoning and construction regulations of the Puerto Rico Planning Board and
Municipality of San Juan's Zoning Regulations.
5 Obtain results of geotechnical study / soil test 21 days USD 5,000
Agency : Private licensed company
BuildCo will request a soil test for the structural calculations for the foundation.
Contractors ask for a soil test to ensure that the foundation of the building is
solid. The engineer must understand the suitability of the soil for the proposed
construction work. It allows to build a solid foundation and avoid structures to be
damaged or collapsed or leaned.
6 Obtain results of topographical study 14 days USD 1,250
Agency : Private licensed company
A topographical study is conducted prior to construction to measure the levels on
the specific terrain. It is a general technical requirement when building a structure
of this class.
Page 12Doing Business 2019 Puerto Rico (U.S.)
7 Request and follow up to obtain recommendations from PREPA (Electric 14 days USD 100
Power Authority)
Agency : Office of Permits Management (OGPe) - PREPA (Electric Power
Authority)
BuildCo. can request and obtain recommendations from the Electric Service
Company.
8 Request and follow up to obtain recommendations from the Puerto Rico 14 days USD 100
Institute of Culture (Instituto de Cultura de Puerto Rico)
Agency : Office of Permits Management (OGPe) - Puerto Rico Institute of Culture
(Instituto de Cultura de Puerto Rico)
Since 2006, all construction to be built on an archeological site must be approved
by the Puerto Rico Institute of Culture.
Phase I is initiated, and an inspector inspects the site at a cost of USD 100.00. If
anything is found, Phase I-a starts, and the associated fee is USD 250.00, and
so forth.
Assuming that the site is not archaeological (as in the Doing Business case
study), the fees for this procedure would only be USD 100.00. This procedure is
a prerequisite for obtaining the final occupancy permit. Since this is a parallel
process, it can be simultaneous with the previous one.
9 Request and obtain fire recommendations from Authorized Professional 5 days USD 300
and Inspector
Agency : Authorized Professional and Inspector
The Regulations of Construction Permits for Works and Land Use “Reglamento
Conjunto de Permisos para Obras de Construcción y Usos de Terrenos”
published in December 2010 introduces the option of hiring an Authorized
Professional (AP) and Authorized Inspector (AI). Construction companies in
Puerto Rico can now choose between hiring an authorized professional/inspector
or having a government agency carry out the fire recommendations and the fire
prevention and environmental health certificates.
In 2012, the government began providing certification courses and since June
2013 most construction companies in Puerto Rico use the Authorized
Professional and Inspector because it takes less time.
Authorized Professionals and Inspectors charge approximately USD 250 for the
fire recommendations. Moreover, there is a filing fee of $50 for fire
recommendations according to “Orden Administrativa OGPe-2010-3”.
Buy stamps and pay to the College of Engineers and Architects 1 day USD 963
10 Agency : College of Engineers and Architects
The stamps can be obtained at the CIAPR Coop and several other Cooperatives
along the island. Since this is a parallel process, not dealing in may matter with
the previous one, it can be simultaneous.
11 Submit construction drawings for approval to the San Juan Permits Office 60 days USD 5,690
and obtain preliminary approval
Agency : Office of Permits Management (OGPe)
Once all the above steps have been completed, BuildCo can now request the
preliminary approval (licencia condicionada), as it is conditional on BuildCo
paying the construction tax and the workers' policy.
This procedure is regulated by the Reglamento de Certificación, Administrative
Order2009-14. The OGPe grants a preliminary approval, which is necessary to
register for the FSE and to pay the municipal tax (Development Right Transferral
Program) on the building.
Obtain insurance policy from State Insurance Fund Corporation (CFSE) 3 days no charge
12 Agency : State Insurance Fund Corporation
The State Insurance Fund Corporation issues a policy as evidence of workers'
compensation insurance required for the approval of a construction project.
There is a fee schedule to estimate these costs.
Pay municipal construction tax 1 day USD 48,173
13 Agency : Municipality
As provided by Municipal Ordinance No. 14, 2005-2006 Series, the current cost
is 5% of the project value.
14 Obtain construction permit from the San Juan Permits Office 7 days no charge
Agency : Permitting Office of the Autonomous Municipality of San Juan
After BuildCo pays the municipal construction tax and obtains the insurance
policy, the Municipality of San Juan Permits Office issues the construction permit.
Since the payments are needed, this cannot be a simultaneous procedure.
Page 13Doing Business 2019 Puerto Rico (U.S.)
15 Receive footing and foundation inspection 1 day no charge
Agency : Office of Permits Management (OGPe)
According to the Building Code in Puerto Rico all construction projects are
required to receive footing and foundation inspection. Footing and foundation
inspections shall be made after excavations for footings are complete and any
required reinforcing steel is in place. As a consequence, this cannot be a
simultaneous one.
16 Receive concrete slab and concrete components inspection 1 day no charge
Agency : Office of Permits Management (OGPe)
According to the Building Code in Puerto Rico all construction projects are
required to receive concrete slab and concrete components inspection. In
particular, concrete slab, under-floor inspections and other components shall be
made after reinforcing steel and building service equipment, conduit, piping
accessories and other ancillary equipment items are in place, but before any
concrete is placed or floor sheathing installed, including the subfloor. As a
consequence, this cannot be a simultaneous one.
17 Receive frame inspection 1 day no charge
Agency : Office of Permits Management (OGPe)
According to the Building Code in Puerto Rico all construction projects are
required to receive frame inspection. In particular, framing inspections shall be
made after the roof deck or sheathing, all framing, fire-blocking and bracing are
in place and pipes, chimneys and vents to be concealed are complete and the
rough electrical, plumbing, heating wires, pipes and ducts are approved.
18 Receive masonry wall inspections 1 day no charge
Agency : Office of Permits Management (OGPe)
According to the Building Code in Puerto Rico all construction projects are
required to receive masonry wall inspections. In particular, inspections shall be
made after masonry wall is in place with required reinforcements, conduit piping
accessories and other ancillary equipment items are in place, but before any
plastering or architectural specified coverings are placed. This stage is advanced
in the construction. As a consequence, this cannot be a simultaneous one.
19 Request and obtain fire prevention certificate and environmental health 10 days USD 615
certificate from Authorized Professional and Inspector
Agency : Authorized Professional and Inspector
The Regulations of Construction Permits for Works and Land Use “Reglamento
Conjunto de Permisos para Obras de Construcción y Usos de Terrenos”
published in December 2010 introduces the option of hiring an Authorized
Professional (AP) and Authorized Inspector (AI). Construction companies in
Puerto Rico can now choose between hiring an authorized professional/inspector
or having a government agency carry out the fire recommendations and the fire
prevention and environmental health certificates.
In 2012, the government began providing certification courses and since June
2013 most construction companies in Puerto Rico use the Authorized
Professional and Inspector because it takes less time.
Authorized Professionals and Inspectors charge approximately USD 250 for the
fire prevention certificate. Moreover, there is a filing fee of $80 for this certificate
according to “Orden Administrativa OGPe-2010-3”. They charge another USD
250 for the environmental health certificate and there is a filing fee of $35 for this
certificate according to “Orden Administrativa OGPe-2010-3”.
Each certificate takes about 5 days to issue. As a consequence, this cannot be a
simultaneous one.
20 Receive final inspection 1 day USD 300
Agency : Office of Permits Management (OGPe)
According to the Building Code in Puerto Rico all construction projects are
required to receive a final inspection. As a consequence, this cannot be a
simultaneous one.
21 Request and obtain water and sewage from Puerto Rico Aqueduct and 21 days USD 3,000
Sewer Authority (PRASA)
Agency : Puerto Rico Aqueduct and Sewer Authority (PRASA)
BuildCo. requests and obtains water and sewage from the utility company. A final
inspection should be conducted first. As a consequence, this cannot be a
simultaneous one.
Page 14Doing Business 2019 Puerto Rico (U.S.)
Request and obtain occupancy permit from the San Juan Permits Office 10 days USD 100
22 Agency : Permitting Office of the Autonomous Municipality of San Juan
A licensed engineer or architect is responsible for ensuring that the building is
compliant with the regulations and permit outlines, and for supervising the project
during construction (inspections). At the end of the construction, the architect
files with the authorities all plans, a final cost evaluation, and reports from all
inspections. The occupancy permit is then issued. As a consequence, this cannot
be a simultaneous one.
Takes place simultaneously with previous procedure.
Page 15Doing Business 2019 Puerto Rico (U.S.)
Details – Dealing with Construction Permits in Puerto Rico (U.S.) – Measure of Quality
Answer Score
Building quality control index (0-15) 12.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? Inspections by 1.0
(0-2) external engineer
or firm;
Inspections at
various phases.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency; Yes,
external engineer
submits report for
final inspection.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 1.0
Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 1.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer;
Professional in
charge of the
supervision;
Construction
company; Owner
or investor.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 3.0
Page 16Doing Business 2019 Puerto Rico (U.S.)
What are the qualification requirements for the professional responsible for verifying that the Minimum number 2.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) of years of
experience;
University degree
in architecture or
engineering;
Being a
registered
architect or
engineer;
Passing a
certification
exam.
What are the qualification requirements for the professional who supervises the construction University degree 1.0
on the ground? (0-2) in engineering,
construction or
construction
management;
Being a
registered
architect or
engineer.
Page 17Doing Business 2019 Puerto Rico (U.S.)
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) warehouse, the electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
• Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are
receiving all necessary inspections
also collected for the second largest business city.
• Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an
purchasing material for these works area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
• Concluding any necessary supply contract and
- Has two stories with a total surface area of approximately 1,300.6 square meters
obtaining final supply
(14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure (10,000 square feet).
(calendar days)
The electricity connection:
• Is at least 1 calendar day
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed
• Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
• Does not include time spent gathering kilowatt (kW).
information - Has a length of 150 meters. The connection is to either the low- or medium-voltage
distribution network and is either overhead or underground, whichever is more
• Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve
follow-up and no prior contact with officials
the crossing of a 10-meter road (such as by excavation or overhead lines) but are all
Cost required to complete each procedure (% of carried out on public land. There is no crossing of other owners’ private property
because the warehouse has access to a road.
income per capita)
- Does not require work to install the internal wiring of the warehouse. This has
• Official costs only, no bribes already been completed up to and including the customer’s service panel or
• Value added tax excluded switchboard and the meter base.
The reliability of supply and transparency of The monthly consumption:
tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
• Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that
• Tools to monitor power outages (0–1) there are no electricity cuts (assumed for simplicity reasons) and the monthly energy
consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest
• Regulatory monitoring of utilities’ performance supplier.
(0–1) - Tariffs effective in January of the current year are used for calculation of the price of
electricity for the warehouse. Although January has 31 days, for calculation
• Financial deterrents limiting outages (0–1) purposes only 30 days are used.
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial
warehouse in case study
*Note: Doing Business measures the price of
electricity, but it is not included in the ease of doing
business score nor the ranking on the ease of
getting electricity.
Page 18Doing Business 2019 Puerto Rico (U.S.)
Getting Electricity - Puerto Rico (U.S.)
Standardized Connection
Price of electricity (US cents per kWh) 24.5
Name of utility Puerto Rico Electric Power Authority (PREPA)
City Covered San Juan
Indicator Puerto Rico Latin America OECD high Best Regulatory
(U.S.) & Caribbean income Performance
Procedures (number) 5 5.5 4.5 3 (25 Economies)
Time (days) 32 65.5 77.2 18 (3 Economies)
Cost (% of income per capita) 351.9 946.3 64.2 0.0 (3 Economies)
Reliability of supply and transparency of tariff 3 4.3 7.5 8.0 (27 Economies)
index (0-8)
Figure – Getting Electricity in Puerto Rico (U.S.) and comparator economies – Ranking and Score
DB 2019 Getting Electricity Score
0 100
82.15: United States (Rank: 54)
73.43: Puerto Rico (U.S.) (Rank: 88)
71.06: Mexico (Rank: 99)
70.59: Regional Average (Latin America & Caribbean)
64.96: Jamaica (Rank: 115)
64.65: Dominican Republic (Rank: 116)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are
the simple average of the scores for all the component indicators except the price of electricity.
Page 19Doing Business 2019 Puerto Rico (U.S.)
Figure – Getting Electricity in Puerto Rico (U.S.) – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
400
30
350
Cost (% of income per capita)
25
300
Time (days)
20 250
200
15
150
10
100
5
50
0 0
1 2 3 4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Puerto Rico (U.S.) and comparator economies – Measure of Quality
8
7 7.2
7
6
Index score
5
5 4.3
4
4
3
3
2
1
0
Puerto Rico (U.S.) Dominican Republic Jamaica Mexico United States Latin America & Caribbean
Page 20Doing Business 2019 Puerto Rico (U.S.)
Details – Getting Electricity in Puerto Rico (U.S.) – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application letter to PREPA and pay impact fee 1 calendar day USD 1,540
Agency : Puerto Rico Electrical Power Authority (PREPA)
Customer should provide the following information or documents:
• Personal information about applicant and spouse (if applicable), such as: name
and two last names, civil status, social security number, work and residence
phone numbers, driving license number, electoral card number, work address
and location. If the locale rented, information on the owner, such as: name,
address and phone numbers.
• Physical address of the locale where the service will be provided, with location
references, if necessary.
• Postal address (if different from service location).
• Electric installation certificate (this document can be obtained through an expert
electrician with valid license)
• Site Plan and electrical load estimate
• User permit (issued by OGPE) or the corresponding municipality. This permit is
give by ARPE during design stage, and is a clearance of the wiring plans.
• Deposit payment (you will be informed upon applying for the service)
• Document that identifies juridical person to contract, if the service will not be in
the name of a person (incorporation certificate, document that constitutes a
condominium association or of a merchant or special society)
• Official document of the corporation, condominium association or society, which
grants power to its representative to sign electric power service contract.
Payment can be made by cash, check at the utility offices
2 Receive load estimate approval letter and site visit from PREPA 10 calendar days USD 0
Agency : Puerto Rico Electrical Power Authority (PREPA)
Utility engineer inspects the site and discusses with the electrical contractor the
location of the sub-station and pole. He also checks the nearest point of
connection supply. He gives a certificate of site inspection on the spot to the
contractor. The load estimate letter also gives the connection charges which the
customer has to pay.
3 Sign contract, pay security deposit, purchase materials and complete 7 calendar days USD 66,260
external works
Agency : Puerto Rico Electrical Power Authority (PREPA)
The security deposit can be paid by cheque, cash or by a bond. It is reimbursed
upon disconnection of service.
4 Request meter installation by PREPA 7 calendar days USD 0
Agency : Puerto Rico Electrical Power Authority (PREPA)
Electrical contractor has to call utility’s metering department to request them to
install the meter. After calling it typically takes the utility about one week to come
to the site. Meter installation is just a few hours of work.
5 Request that PREPA turn on electricity 7 calendar days USD 0
Agency : Puerto Rico Electrical Power Authority (PREPA)
After meter installation, customer has to contact PREPA to do the final
connection and turn on the electricity.
Takes place simultaneously with previous procedure.
Page 21Doing Business 2019 Puerto Rico (U.S.)
Details – Getting Electricity in Puerto Rico (U.S.) – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 3
Total duration and frequency of outages per customer a year (0-3) 0
System average interruption duration index (SAIDI) 14.4
System average interruption frequency index (SAIFI) 4.8
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 5.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 0
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of No
supply?
Financial deterrents aimed at limiting outages (0-1) 0
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages No
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online www.aeepr.com
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 22Doing Business 2019 Puerto Rico (U.S.)
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
• Preregistration procedures (for example, The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
- Are located in the periurban area of the economy’s largest business city. For 11
• Registration procedures in the economy's largest economies the data are also collected for the second largest business city.
business city.
- Are 100% domestically and privately owned.
• Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals.
title with municipality) - Perform general commercial activities.
Time required to complete each procedure The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
• Does not include time spent gathering - Is fully owned by the seller.
information - Has no mortgages attached and has been under the same ownership for the past
• Each procedure starts on a separate day - 10 years.
though procedures that can be fully completed - Is registered in the land registry or cadastre, or both, and is free of title disputes.
online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000
• Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
document is received
located on the land. The warehouse is 10 years old, is in good condition, has no
• No prior contact with officials heating system and complies with all safety standards, building codes and legal
requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of entirety.
property value) - Will not be subject to renovations or additional construction following the purchase.
• Official costs only (such as administrative fees, - Has no trees, natural water sources, natural reserves or historical monuments of
duties and taxes). any kind.
- Will not be used for special purposes, and no special permits, such as for
• Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural
payments are excluded activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 23Doing Business 2019 Puerto Rico (U.S.)
Registering Property - Puerto Rico (U.S.)
Indicator Puerto Rico Latin America OECD high Best Regulatory
(U.S.) & Caribbean income Performance
Procedures (number) 8 7.2 4.7 1 (4 Economies)
Time (days) 191 63.3 20.1 1 (New Zealand)
Cost (% of property value) 1.7 5.8 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 13.5 11.9 23.0 None in 2017/18
Figure – Registering Property in Puerto Rico (U.S.) and comparator economies – Ranking and Score
DB 2019 Registering Property Score
0 100
76.87: United States (Rank: 38)
65.73: Dominican Republic (Rank: 77)
60.42: Mexico (Rank: 103)
55.25: Regional Average (Latin America & Caribbean)
53.61: Jamaica (Rank: 131)
46.14: Puerto Rico (U.S.) (Rank: 159)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These
scores are the simple average of the scores for each of the component indicators.
Figure – Registering Property in Puerto Rico (U.S.) – Procedure, Time and Cost
Time (days) Cost (% of property value)
0.9
0.8
Cost (% of property value)
150 0.7
0.6
Time (days)
0.5
100
0.4
0.3
50
0.2
0.1
0 0
1 *2 3 4 5 6 7 8
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 24Doing Business 2019 Puerto Rico (U.S.)
Figure – Registering Property in Puerto Rico (U.S.) and comparator economies – Measure of Quality
30
25
Index score
20 17.6
16.3
13.5 14.5 14.0
15
11.9
10
5
0
Puerto Rico (U.S.) Dominican Republic Jamaica Mexico United States Latin America & Caribbean
Details – Registering Property in Puerto Rico (U.S.) – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain a property title report at the Property Registry 1 day USD 75; (USD 75
Agency : Property Registry (Includes Private Title
A Notary is an attorney at law licensed by the government of the Commonwealth Searcher cost, if
of Puerto Rico to certify and attest as to, among other things, the legality of the
performed directly at
transactions contained in the public deeds executed before him, the identity of
the Registry: USD
the parties executing the public deed and the date and municipality in which the
15))
public deed was executed. Public deeds for the sale of real property must be
prepared by a Notary and executed by the parties before the Notary. In order to
prepare the public deed, the Notary requires a title report, usually 30 days or less
before the execution of the public deed, which shows the status of the real
property at the Registry of the Property, i.e., owner, mortgages, easements and
other encumbrances. The title report will also specify whether documents have
been recorded or are still pending recordation at the Registry of the Property.
Notaries have new judicial powers under Act No. 282 of August 21, 1999 ("Ley
de Asuntos No Contenciosos"), finally put into effect under new rules issued last
year by the Puerto Rico Supreme Court (2011 TSPR 135 and Regulation 8021 of
May 16, 2011).
With the approval of Law 210 of December 8th 2015, a property title report can
be performed directly without any intermediaries by examining the Registry of the
Property records online. However, the majority of owners still rely on Private Title
Searches to complete the report. Additionally, at the time of execution of the
purchase-sale deed, the notary public can connect again online with the Registry
and verify if any changes have occurred since the date of the title report.
2 Obtain a property tax certificate from the Municipal Revenues Collection Less than one day, USD 50
Center (CRIM) online
Agency : Municipal Revenues Collection Center (CRIM)
Obtain a property tax certificate and value certificate by completing Form AD-25
at the Municipal Revenues Collection Center (CRIM). The property tax debt
certificate will disclose property tax debts and the property tax liability of the
property. The value certificate lists any applicable tax exemptions and shows
property tax assessments as per existing valuations.
Since March 2016, this certificate can be requested and retrieved online. The
digital certificate has the same validity as the paper certificate, and is valid for 30
days.
3 Obtain Title Insurance 2 days USD 3,000
Agency : Insurance company
Buyer obtains a title insurance policy. Although this is not required by law, it is
highly recommended, and is required by all banks when they grant a mortgage.
Title insurance policies insure that the sale of the property will be recorded at the
Property Registry. Title insurance usually covers for any issue that may block the
property transfer registration process, or for any outstanding debt or
encumbrance that was not found during the due diligence process (or that it was
not duly registered at the Property Registry).
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