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I am a US trader, researching a move to Puerto Rico, to avoid capital gains taxes. Are there other Puerto Rico based traders in Futures.IO? I see a couple of threads but they are old and very light on content.
My key concerns are finding a nice apartment with reliable power and internet.
Tax-free capital gains are a big draw for investors and traders. However, this part of Puerto Rico Act 60 applies only to Puerto Rico sourced capital gains and passive income. To qualify you must be a bona fide resident of Puerto Rico for an entire tax year.
Furthermore, you must make a mandatory annual donation of $10,000 and buy a home in Puerto Rico.
If you can meet the 'bona fide' resident and 'presence' requirements (a high hurdle... read the IRS guidelines, pub 570) and your capital gains taxes exceed $10k per year, then maybe this would work for you. In my eyes, 'donation' = tax.
I'm thinking about visiting Puerto Rico next month to see if I would enjoy living there as a permanent resident. I will turn 65 next year. Being able to buy a decent condo there for under 100K would be an important consideration for me.
This smart girl moved to Puerto Rico and she talks about her motivation and experiences in her YouTube channel. I am sure she is willing to give more information if you contact her. She also trades (crypto).
I have been to Puerto Rico on vacations. I have also watched a weekly newsletter writer (John Mauldin) as he and his wife did this a couple of years ago.
First and foremost the Government is interested in attracting multi
millionaires. They buy expensive places at a large gated resort community, I think it is a four seasons property. You have to spend over 6 months a year on the island. It us not for people with a couple of million.
You have to appreciate that the island is really close to a third world country. Because you can go to the main land without any visa stuff many many people with ambition and talent left for greener pastures a long time ago.
The humidity is unrelenting, so if you can't handle Florida don't bother. Produce is a big problem, we had a real problem trying to have a salad on a regular basis. What makes it worse is they love that diet we have seen all over Latin America, meat and starch only. Then there is the Johnson Act that requires all freight to go by American Flagged ships. So goods cost more than nearby islands. Add in US minimum wages, which are higher than nearby islands plus two families controlling politics for generations and you have a difficult situation, to say the least.
A half measure would be to have a legal residence in a state with no income tax. The Escapee's RV club makes becoming a Texan easy. South Dakota is on that list also with an extra hurdle or two.
@USLiberty There are many Facebook groups about moving to and living in PR. There are groups specifically about real estate. RE is not "cheap" in PR. Of course that is relative. The big hurricane a few years ago took some RE off the market, and PR population is growing. If you appreciate the beach and rainforest than you may find it worth it. If you are thinking that PR is a "cheap" place to live, that may not be the case. If you make a lot of money from capital gains then PR is uniquely attractive. If that is not a big driver then it may take some consideration. Also, look into how Social Security is handled, if that is important to you.
