With no local income taxes and additional incentives, you can live your best life in a tropical paradise
April 15, 2024
If you're sitting on substantial gains from cryptocurrency, stocks, funds or other investments, first of all congratulations! However, you're likely aware that you'll owe hefty capital gains tax on it if you reside in the United States. Perhaps you wish there was an easy way to reduce your taxes while still maintaining your citizenship, benefits and mainland income sources?
Well, thanks to Puerto Rico's tax-friendly laws, that's exactly what's possible for eligible residents though Act 22 and Act 60 for businesses. These laws allow individuals to save every last penny from selling appreciated assets like cryptocurrency, stocks, real estate or businesses - with no federal or state capital gains taxes due.
Forget getting gouged around 20% by the IRS on decades of growth. Puerto Rico lets you wipe out that tax liability entirely and legally build wealth faster. For savvy investors and entrepreneurs, it's an obscure yet remarkable opportunity for incredible tax savings.
Here's how it works: While Puerto Rico is a U.S. territory, it has special tax rules regarding investment profits for established tax residents of the island. Two key acts offer game-changing relief:
1. Act 60 for individuals provides a full exemption from ALL capital gains taxes on investments for individual residents - regardless of where those holdings are located.
2. Act 60 for businesses allows qualifying Puerto Rico businesses to pay just 4% corporate tax on operating profits. Any capital gains get wrapped into that low rate.
So let's say you're a crypto investor whose portfolio exploded in value over the past decade. Instead of potentially owing millions to the IRS after selling, those gains could be 100% tax-free just by becoming a bona fide resident of Puerto Rico.
This applies to any appreciated assets like stocks, funds, real estate, collectibles, businesses and more. The upside of building wealth over your lifetime doesn't get wiped away in the end.
But here's the kicker - Puerto Rico's tax incentives don't require you to ditch your U.S. citizenship and everything associated with it. As a bona fide Puerto Rico tax resident, you can still:
πΊπΈ Retain your U.S. citizenship status and passport
π€² Remain eligible for federal benefits like Social Security
βοΈ Freely conduct business and travel in the States
π Keep mainland U.S.-sourced income streams, investments, and property
πΈ Pay regular federal/state taxes on any non-Puerto Rico-sourced income
The island basically lets you access incredible investment tax savings while keeping one foot firmly planted stateside with all the same rights and privileges as any other U.S. citizen.
If you're dreaming of wiping out taxes by moving to an overseas haven, you're likely picturing expensive locales like the Cayman Islands, Bermuda or Monaco. Those fancy spots certainly have an amazing island vibe, but also come with a high cost of living and greater hoops to jump through.
We're talking housing costs in the millions, exorbitant groceries and utilities, inflated prices for transportation, leisure and healthcare that can quickly burn through your savings. So much for that "tax-free" lifestyle when your money gets drained elsewhere!
Puerto Rico stands out by offering not just generous investment tax exemptions on par with those havens, but also surprising affordability for premier island living that lets your net worth go SO much further.
Despite an incredible tropical climate, modern infrastructure and U.S. territorial privileges, Puerto Rico boasts relatively low costs across the board, as compared to other tax havens and are generally less than expensive cities on the mainland:
π‘ Housing: Luxury oceanfront condos and estates start around $500K
π½ Dining: Delicious, gourmet restaurants with fresh tropical fruit and seafood
π₯ Healthcare: High quality medical care at a fraction of U.S. costs
π Entertainment: Beautiful beaches, water sports, historical sites, golf, the only rainforest in the United States and more...
As an example, a $3 million net worth could fund an ultra-lavish lifestyle spending $200K+ annually in Puerto Rico. Yet try living that same way in San Francisco, Manhattan, or Miami and your entire portfolio gets drained rapidly by taxes and inflated costs.
Puerto Rico gives you the unique ability to maximize your wealth AND lifestyle as a tax-exempt resident. Something no other traditional haven can match when factoring in the total cost of living.
Of course, you can't just buy a timeshare in Puerto Rico and suddenly avoid all taxes. There are key requirements to properly establish bona fide residency and qualify for Acts 22 and 60, such as:
1. Demonstrating "closer connections" like purchasing a residence, opening local bank accounts, spending 183+ days per year on the island.
2. Submitting applications and securing approval decrees for Act 22 individual resident investor status and Act 60 corporate tax incentives.
3. Legally structuring operations like investment management to qualify for covered Act 60 categories and entities.
4. Carefully timing relocations, incorporations and asset sales to maximize benefits compliantly under Puerto Rico and U.S. laws.
It's a complex process with many nuances, but get it right and the long-term tax savings can be absolutely spectacular compared to remaining on the mainland.
Whether you're an active trader, crypto investor, growing a fund manager business, or someone with significant appreciated assets, Puerto Rico offers unmatched tax benefits. The problem? Attempting to DIY it and risking one misstep that keeps you on the hook for federal taxes and penalties.
That's why our team at Move specializes in helping individuals properly establish Puerto Rico residency and legally qualify for all available investment tax exemptions through a true white-glove service.
We handle all applications, tax structuring, investment transfers, business incorporations and more - optimizing your exact situation for maximum tax advantages from Day 1 while ensuring full IRS compliance.
From there, Move helps coordinate and streamline your permanent relocation and transition to start living your new tax-free lifestyle in paradise with ease. No complications, just straightforward wealth-building in accordance with the territory's laws.
Ready to calculate your investment tax savings as a U.S. citizen relocating to Puerto Rico's tropical paradise? Book a free, fully-confidential consultation call with our team today! On the call, we'll explore your specific situation and income sources to map out a personalized plan for claiming the biggest possible exemptions under Acts 60 and 22.
More importantly, we'll ensure you have a clear understanding of what's involved upfront to make the move and do it all properly and legally. No pressure, just the opportunity to explore smarter ways to maximize your wealth while enjoying premier island living without constraints.
Don't let complex rules scare you away from this incredible chance to supercharge your net worth and lifestyle as a Puerto Rico tax resident. Get started here!
With no local income taxes and additional incentives, you can live your best life in a tropical paradise
If you're an active trader, investor, or someone with significantly appreciated assets, Puerto Rico offers unmatched tax benefits.