Through Act 60, Puerto Rico tax law allows residents to legally avoid taxes on capital gains. Ready to learn more about how you can save big moving to Puerto Rico? Then keep reading!
The island of Puerto Rico offers visitors a plethora of delights: Long stretches of pristine beach, crystal-clear water with schools of vibrant fish, and lush mountain ranges home to a brilliant cacophony of tropical bird song. Puerto Rico also boasts a rich culture and history that can still be experienced by meandering old cobblestone streets and exploring buffeted fortresses.
As if that weren’t already enough to tempt someone to move to the island, in 2012, Puerto Rico enacted two laws, called Act 60, to entice wealthy individuals and businesses to move here.
There’s no denying that many wealthy individuals are attracted to the idea of holding onto more of their money. Act 20 and Act 22 provide a total exemption from Puerto Rico income taxes on all passive income realized or accrued after such individuals become bona fide residents of Puerto Rico. But how exactly do each of the laws benefit businesses and individuals?
This law was enacted specifically to promote the exportation of services by providing attractive incentives for businesses that build and expand their export services on the island. In addition, Act 20 promotes investments on research and development as well as initiatives from the private and academic sectors by offering credits and exemptions for these activities.
Who is Eligible?
Act 20 offers benefits for services provided from Puerto Rico to outside markets. The following areas are eligible:
If you’re tired of Uncle Sam taking most of your earnings, you’ll be very interested in how Act 22 can help you put more into your retirement account. Act 22 was enacted to attract new residents to Puerto Rico by providing a TOTAL EXEMPTION from Puerto Rico income taxes and capital gains taxes on all passive income and realized or accrued once an individual becomes an official resident of the island. By attracting wealthy residents, the local economy will realize a boost. Local investments will be made in real estate as well as other services and consumption of products.
Find out more about eligibility.
If you love the idea of living in paradise AND saving money, you will definitely want to consider moving to Puerto Rico.
Have any questions about Act 20 and Act 22? I’d be more than happy to answer them. Just give me a call or email me. Interested in buying some property in Puerto Rico? Please take a look at my listings. I’d love to help you reach your financial goals.
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