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Puerto Rico Tax Incentives & Relocation

Do I need a visa or passport to move to Puerto Rico from the U.S. mainland?

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No, as a U.S. citizen you do not need a passport or visa to relocate to Puerto Rico since it's a U.S. territory. You can enter with just your state-issued ID or driver's license.

How difficult is it to become a resident of Puerto Rico for tax purposes?

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Becoming a Puerto Rico tax resident is relatively straightforward, with the main requirements being making Puerto Rico your closer permanent home and residing there for at least 183 days per year. Working with a firm like Move ensures qualifying properly.

How's the infrastructure and internet connectivity in Puerto Rico?

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Despite its island locale, Puerto Rico has very modern infrastructure with high-speed internet, reliable utilities, incredible beaches and amenities that make remote work and running a business extremely viable.

How does the cost of living in Puerto Rico compare to the mainland?

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In general, the overall cost of living in Puerto Rico is significantly lower than most major cities on the U.S. mainland. Housing, groceries, transportation, entertainment and many goods/services are more affordable, allowing your income to go much further in funding your ideal island lifestyle.

What are the downsides of relocating to Puerto Rico compared to the mainland U.S.?

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Some potential downsides are being farther away from family/friends, adjusting to a new culture, hurricane risks during storm seasons, and being in a tropical climate year-round which isn't for everyone. However, most who make the move find the benefits drastically outweigh the drawbacks.

Why choose Puerto Rico over staying somewhere like Texas, Florida or Nevada which also have no state income tax?

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While those no-income-tax states provide some benefits, the tax savings in Puerto Rico from avoiding all federal income taxes are exponentially higher, especially for wealthy individuals and entrepreneurs. You also get exclusive territorial tax incentives, better quality of island living, and a lower overall cost of living.

What are the main tax advantages of living in Puerto Rico?

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As a U.S. territory, Puerto Rico allows eligible residents to legally avoid federal personal income taxes on most income sources thanks to tax incentives like Act 60. You also pay zero capital gains tax and can benefit from generous corporate tax exemptions.

Is Puerto Rico a safe place to live?

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Puerto Rico has a similar range of safe neighborhoods and gated communities as you'd find in any U.S. state or city. With proper precautions and choosing the right area to live, it can be an extremely safe environment, especially contrasted with high crime rates in some mainland cities.

What are the biggest advantages of Puerto Rico over other Caribbean islands?

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As a U.S. territory, Puerto Rico offers unmatched convenience with no passports required, easy travel back to the mainland, familiarity with U.S. laws/systems, and large established expat communities. Its tax incentives are also far more advantageous.

What kinds of businesses qualify for the tax exemptions under Act 60?

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Act 60 provides generous tax incentives for service businesses deriving income from exporting services outside of Puerto Rico. Eligible businesses include consulting, marketing, computer/IT services, financial/investment services, professional services like legal and accounting, R&D, and more. Essentially most service-based export businesses qualify for potential benefits like a 4% corporate tax rate and tax-exempt distributions. Manufacturing businesses may also be eligible for incentives under separate Puerto Rico laws.

What is the expat/mainland American community like in Puerto Rico?

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Puerto Rico has a very large and well-established community of expats and mainland Americans who have relocated for the tax advantages and island lifestyle. It's easy to connect through social groups, clubs, events and neighborhoods catering specifically to this crowd. You'll find a welcoming, tight-knit expat culture.

Frequently asked questions

Your Top Questions Answered

Puerto Rico Tax Incentives & Relocation

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Insider Tips for moving to Puerto Rico

Frequently asked questions

Your Top Questions Answered

Puerto Rico Tax Incentives & Relocation

Do I need a visa or passport to move to Puerto Rico from the U.S. mainland?

How difficult is it to become a resident of Puerto Rico for tax purposes?

How's the infrastructure and internet connectivity in Puerto Rico?

How does the cost of living in Puerto Rico compare to the mainland?

What are the downsides of relocating to Puerto Rico compared to the mainland U.S.?

Why choose Puerto Rico over staying somewhere like Texas, Florida or Nevada which also have no state income tax?

What are the main tax advantages of living in Puerto Rico?

Is Puerto Rico a safe place to live?

What are the biggest advantages of Puerto Rico over other Caribbean islands?

What kinds of businesses qualify for the tax exemptions under Act 60?

What is the expat/mainland American community like in Puerto Rico?

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