From a Caribbean Business interview with Puerto Rico’s Secretary of Economic Development and Commerce Alberto Bacó:
“We are attracting high-income, well-educated residents,” he said during a forum with University of Puerto Rico business school alumni. The official said the government fielded roughly two dozen petitions in both April and May from rich people seeking to tap incentives for relocating to Puerto Rico. “I have met with billionaires. These aren’t people who go to a bank seeking a loan. These people have their own capital to invest,” Bacó said according to media reports. Bacó cited Nicholas Prouty, president of Putnam Bridge Investments, who is relocating to Puerto Rico …
Law 22 is designed to primarily attract to Puerto Rico high-net-worth individuals, empty nesters, retirees who currently relocate to other states and individual investors from the U.S. and other countries, by eliminating all taxes on passive income that accrues after they relocate to the island. While dividends and interest income earned by Puerto Rico residents on U.S. securities are generally taxed by the federal government, capital gains taxes on their sales are based on residence.
So if you lived your whole life in the Homeland and have millions of dollars in unrealised capital gains from U.S. investments, the U.S. Congress and the Puerto Rican government will cooperate to make sure you don’t have to pay a penny of tax. But if you’re an Australian with an American mother and a Superannuation plan, the U.S. will make you waste 55 hours per year filling out a form even accountants have trouble understanding to tax you on retirement savings which the Australian Parliament voted should be tax-free.
The reason for this, of course, is that All Americans (besides the ones who move to Puerto Rico) Must Pay Their Fair Share for the Benefits of Citizenship in the Greatest Country on Earth, and if you decide that you don’t want those Great Benefits, then you’ll be exiled permanently. I guess because there’s no U.S. embassy in Puerto Rico, those poor deprived Homelanders living there don’t get any of those Great Embassy Services like us U.S. Persons abroad.
Good one Eric
Puerto Rico dont need an US embassy PUERTO RICO Is USA.
Follow this link learn something and start writing again with knowledge.
This is like asking Washington DC to have a US embassy.
@salimpr the sarcasm seems to have gone over your head. Try rereading.
And coincidentally, International Man is running a new article today about Puerto Rico tax tricks:
Funny that those of us who actually live abroad have to pay US taxes and get nothing in return, while Puerto Ricans who are allegedly so proud to be part of the US run these kinds of schemes to make sure people living in the US all their lives don’t pay US taxes.
This is how this work,people that works cor a company don’t pay federal tax but we do pay Social Security if you are self employe you have to pay federal taxes if you own a company yo have to pay ferderal taxes.
But about the millionaires moving to PR .
This is a fact at the end this millionaires will make some investment in Puerto Rico and they will need to bring something from mainland.
The info-graphic confirms that we depend heavily on the U.S. but the benefits are for those up north not the other way around.
United States → Net Gain – 44.6 Billion
Puerto Rico → Net Loss – 44.6 Billion
From the United States to Puerto Rico (13.53 Billion)
Federal disbursements to Local Government Agencies (2.7 Billion)
Disbursements given to individuals such as: (1.9 Billion)
PAN (SNAP in the U.S.)
Disbursements made earned by individuals (8.9 Billion)
From the Puerto Rico to United States (58.1 Billion)
Imports on Registered Merchandise (22.6 Billion)
Capital Gains (34 Billion)
From Large Companies and Manufacturing
Cabotage Law (1.5 Billion)
Fees for transporting imported merchandise on U.S. ships
Only a Homelander could say “without having to leave the U.S.” as if it were a “win-win situation” …
Casey Research continues its big push to promote Puerto Rico residency to Homelander clientele:
And other Homeland tax lawyers are getting increasingly blatant & obnoxious in their efforts to portray renunciation as a step taken only by criminals & hasty fools:
Out of idle curiosity, I wonder if there’s any special interaction between IRC 877A and Treas. Reg. 1.937-2(f) of which a dual citizen abroad could take advantage by a well-timed move to San Juan about a year before giving up citizenship … though I’d imagine it might make State slower to process your application because they think you’re trying to pull another Juan Mari Brás.
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