Author Topic: Puerto Rico tax advantages  (Read 3129 times)

RandyP

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Puerto Rico tax advantages
« on: January 05, 2019, 06:57:20 AM »
Has anyone here moved to Puerto Rico, or considered doing so, to take advantage of the tax rate. Basically it's 4% total taxes on income, yet you are still in the US, etc. Anyone made the plunge?

Nigel

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Re: Puerto Rico tax advantages
« Reply #1 on: January 05, 2019, 10:58:29 AM »
Has anyone here moved to Puerto Rico, or considered doing so, to take advantage of the tax rate. Basically it's 4% total taxes on income, yet you are still in the US, etc. Anyone made the plunge?

A co-worker has. Still works for us so drawing DC salary while living in PR.  Nice gig.  Haven’t spoken to him in a bit.  While English is prevalent I’d guess you’d want to have decent Spanish skills.

dpmf01

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Re: Puerto Rico tax advantages
« Reply #2 on: January 24, 2019, 10:42:27 PM »
I thought the 4% rate only applied to capital gains income, not regular wages?

Lynx

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Re: Puerto Rico tax advantages
« Reply #3 on: January 27, 2019, 03:01:00 AM »
The 4% as far as I understand is based on company taxes. Puerto Rico still has its own income tax even though you don't pay Federal Income tax. You would also need a decent working knowledge of Spanish to get things done as even though it is advertised as dual language the English is limited in a lot of areas.

RandyP

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Re: Puerto Rico tax advantages
« Reply #4 on: January 29, 2019, 09:07:33 AM »
I thought the 4% rate only applied to capital gains income, not regular wages?
There are rules, but if you are self-employed you can make it work. While I'm sure spanish would be very helpful, you actually have to provide services back to the mainland to get the favorable tax treatment.