As you probably know, the US taxes its citizens on worldwide income. That means it taxes them whether they live and earn their money in France, Angola or Japan.
Not many places exist in the world where the US government says, “You don’t have to file federal income taxes anymore! Just pay taxes where you live, buddy.”
But Puerto Rico is different. If you meet certain criteria, then as a US taxpayer with official residency in Puerto Rico – which is a self-governing US territory – you are NOT required to pay US federal tax on income you earn in Puerto Rico.
Until 2012, that meant very little: Taxes on the island equaled or were sometimes even higher than US federal taxes.
But this changed when Puerto Rico introduced Acts 20 and 22.
Act 20 cuts corporate taxes to 4% (paid only to Puerto Rico).
And Act 22 – the Individual Investor Act – cuts capital gains taxes to zero for investors and traders.
Over the years, we’ve written about this legislation often on the pages of Sovereign Man: Confidential. And we’ve showcased productive people who’ve benefited from Acts 20 and 22.
A couple of months ago, the Puerto Rican government made some changes to both acts.
This alert details the changes to Acts 20 and 22… and outlines how you can obtain residency here.
Read on to learn more about the tax paradise within a tropical paradise.
Every time I land here, I’m reminded of the immense opportunity… right in America’s backyard. As you probably know, the US taxes its citizens on worldwide income. That means it taxes them whether they live and earn their money in France, Angola or Japan. Not many places exist in the world where the US government…