Who wouldn’t want to move to Puerto Rico? After all, it offers everything you expect from a tropical paradise: Sunny skies, warm weather all year round, beautiful beaches, and great food, culture and people.
But it offers something else as well that’s drawing US residents here: a completely legal way to save on taxes!
Two recently enacted Acts in the Puerto Rican tax code provide for a ZERO tax rate on Capital Gains on particular interest and dividend.
And if you run a business servicing clients outside Puerto Rico such as investment or portfolio advice, research, writing, graphic design, web content, and stock trading, the newly-enacted tax laws mean you only pay a rate of 4% on your profits to the Puerto Rican government.
Of course, any other income you earn as a resident of Puerto Rico is liable for local taxes, but you won’t have to face double taxation courtesy of Uncle Sam.
All of this has been a crucial factor in the rise in number of American expatriates who choose to make Puerto Rico their home. The United States is the only country in the world that taxes its citizens no matter where in the world they live and earn an income – so much so, that many US citizens are opting to renounce their citizenship and permanently move abroad. In fact, Forbes reported that last year the number of Americans giving up their passports for good increased by over 200%.
Puerto Rico, however, offers a neat and completely legal loophole. Being a US protectorate (more specifically, an unincorporated territory), the island nation can accommodate US citizens without forcing them to renounce their citizenship. Bona fide Puerto Rican residents can enjoy all the pleasures of life on the island – and a massive tax break – and can still fly back to the United States to visit family and friends without any hassles about visas or other red tape.
So is Puerto Rico the right place for you? Why don’t you make a visit here and see for yourself?