Sunday, March 6, 2016

Why I REALLY Moved to Puerto Rico, and You Should Too

Why I REALLY Moved to Puerto Rico, and You Should Too: Act 20 and Act 22 in Puerto Rico allow for tax benefits that US citizens can obtain nowhere else in the world

Why I REALLY Moved to Puerto Rico, and You Should Too

by Louis James, Chief Metals & Mining Investment Strategist

By becoming a bona fide resident of Puerto Rico, you can escape paying high US taxes legally, still retain your American citizenship, and avoid paying the hefty exit tax.

You see, since Puerto Rico is an unincorporated territory (commonwealth) of the US, it’s allowed to have a special tax arrangement.

Namely, legal residents of Puerto Rico who earn their income in Puerto Rico do not pay US federal income taxes.

All Puerto Ricans are already US citizens, and since it is a commonwealth of the US, Americans are generally free to stay on the island without restriction and do not even need a passport to travel there. It’s like visiting another state for most purposes, though one that predominately speaks Spanish.

But speaking Spanish is not a necessity to move there… you don’t need to learn Spanish to get around Puerto Rico. Many expats and relocated mainland Americans only speak English and get along just fine.

While mainland Americans who become Puerto Rican residents do not have to pay US federal income taxes on income earned on the island, they still have to pay local Puerto Rican taxes.

Traditionally, those taxes have been very close to those back home, so the island’s unique tax status didn’t net much benefit.