The pandemic has fast-tracked our need to move to digital.
As a result, millions of business owners have discovered freedom associated with working remotely.
If so, why live in a place where you spend the third of your income on taxes?
The truth is, you can pay almost no tax.
I am not talking about moving to Florida or Texas to cut state taxes...
What if I told you, you can pay almost no tax. And live on a beach like this….
And by the way, you can do this even if you’re a US Citizen.
Here comes Act #20 & #22 of PUERTO RICO!
For instance, a professional freelancer who wants to create a Puerto Rican pass-through entity (LLC),
and applies for the Act 20 exemption would pay only 4% fixed income tax rate and is exempt from federal taxes on Puerto Rico source income.
Now I know what you’re thinking. "I’m not sure I can listen to Despacito on repeat for the rest of my life”. But don’t worry.
That song isn’t popular anymore. (Note: if you don’t know what the song Despacito is, consider yourself lucky)
Here are the things to consider if you are willing to relocate to Puerto Rico:
0% tax on interest and dividends earned after you become a resident
0% long-term capital gains tax after you become a resident
5% tax on long-term capital gain for appreciation before you move for any sales during your first 10 years as a resident
4% business tax
Curious? Well, actually you can do that!