Live Better – Save More
Puerto Rico is not just an enchanting island with sun-drenched beaches and lush mountains, it’s also a major tax haven! Read on to find out how you can move to a tropical paradise AND keep more of your hard-earned money in your own pocket with Puerto Rico tax advantages.
Living in Puerto Rico has always been an enticing proposition. After all, it doesn’t get much more beautiful than this. Long stretches of pristine beaches, sapphire water that sparkles in the sun, tropical breezes filled with scents of Hibiscus and barbequed pork, and cobbled streets that meander through Old San Juan. Puerto Rico is truly paradise on Earth.
But now the island is even MORE enticing thanks to some pretty amazing Puerto Rico tax advantages. In an effort to boost the local economy, the government of Puerto Rico enacted Act 20 and Act 22 to attract wealthy Americans and business owners to the island.
ACT 20 and 22
In January of 2012, Puerto Rico passed legislation that made the island a tax haven for those U.S. citizens who become official residents. Act 20, also known as the Export Services Act, and Act 22, the Individual Investors Act, make new residents, who live for at least half on the island, exempt from paying most federal income taxes. How is this possible?
Well, the U.S. Tax Code generously exempts Puerto Rico sourced income (Puerto Rico is a commonwealth of the United States) from federal tax. Under the law, residents of the island pay minimal, and in some cases no taxes on interests and dividends or Puerto Rico capital gains.
On top of these already amazing savings, property taxes are far less than property taxes on the mainland, so you’ll save all around when you choose to invest in real estate and move here part of full time.
Find out more about Act 20 and Act 22
Work with Local Experts
Interested in taking advantage of a tax shelter in Puerto Rico?
We’ve helped countless clients make the move to Puerto Rico and we’d love to help you, too. Are you looking for a cute little condo on the beach? Or maybe a luxury home near one of our splendid golf courses is more to your liking? Are you a retiree wanting a slower pace of life or a snowbird in search of warmer climate for half the year? Whatever your situation, we can help you find your next dream home.
Take a look through our listings, then get in touch with us. We’ll be happy to answer any questions you may have about these amazing tax advantages and relocating to the island.