Puerto Rico

For Americans looking to greatly reduce their tax without giving up their passport and stay within a short flight from the mainland.

Benefits

• Tropical island
• Sparsely populated
• Low cost of life
• Spanish speaking
• 2.5h to Miami, 4h to NYC, 9-11h to SFO

Recommended neighborhoods:

condado/ocean park /Isla verde, dorado (suburbs), Las Palmas and Rincon

Relevant laws:

Act 60: 4% income tax and 0% capital gains tax

Previously: Act 20 & Act 22 which have been merged and updated into Act 60.

Services

https://relocatepuertorico.com/

Degens in the island:

BowTiedDuck https://twitter.com/BowTiedDuck

BowTiedMastadon https://twitter.com/BowTiedMastadon

Long form

Most Americans who have not been to Puerto Rico believe that it’s a small island with warm breezes and beautiful beaches where you can wear shorts and sandals year round, but the reality is far from the tropical paradise envisioned by most people. Puerto Rico, also known as The Island of Enchantment (La Isla del Encanto) has many different climates including tropical rainforest, arid deserts, high mountains and sunny beaches all within its mainland boundaries. The scenery varies widely and can be very extreme depending on where you live and what time of year it is. There are also vast differences between living in San Juan versus living in a remote town off the beaten path where the closest town with modern conveniences is a long car ride away.

Life in Puerto Rico for American expats is very different from living in the United States. The cost of living, especially housing, is much lower than in the US which makes day-to-day life more affordable. Many people who move to Puerto Rico are looking for an alternative lifestyle or retirement haven where they can afford to live without worrying about paying their bills every month because things like gasoline prices and grocery bills are much cheaper on the island compared to back home. While many Americans enjoy this aspect of living in Puerto Rico, it’s not all roses and sunshine if you decide that you don’t want to manage your own utility bill or be responsible for maintaining your own house or apartment. Another big difference for Americans living in Puerto Rico is that the legal system, including the courts and enforcement of contracts, is foreign to them which can lead some people to assume erroneously that they can break their leases without penalty if they don’t like the new place they are renting or if something breaks on their rental property.

Life as an American expat in Puerto Rico can be very different from living back home. It’s a beautiful island with a lot to offer, but it’s important to do your research before you move here and understand how things work on the island as well as what life is like outside of the capital city where most Americans relocate.

Taking the time to learn about your destination before you move is very important if you want things to go smoothly for you. As people who live and work outside of their home countries know, living abroad can be difficult at times because many things are different from what we may be used to such as waiting in line at the grocery store, food menus in restaurants, office etiquette and business culture. It’s important to keep an open mind when you move abroad so that you can adapt to the new environment which may be drastically different from what you are used to.

A lot of people ask me where I recommend they visit when they come to Puerto Rico; well, it depends on your interests and what you like to do most: beaches? adventure? rich history? nightlife? arts and entertainment ? It really doesn’t matter if you’re visiting San Juan or Ponce , my hometown, you will find a lot of options for partying and having fun—and even more attractions. The range of things to do in Puerto Rico is huge, so the following list is not going to be complete because I want you guys to discover new places that others have not talked about or discovered yet.

As it has been said before, Puerto Rico is an island , so there are five options regarding how to get here: airplane, car ferry , catamaran , cruise ship , or yacht . This article focuses on beaches and nightlife activities mostly because ‘things to do’ for non-surfing types can be found all over the web (check Trip Advisor if you’re interested in visiting other cities).

Making friends in a new country is one of the best aspects of moving abroad. Meeting new people and having friends with whom you can share your experiences allows you to expand your horizons by learning about other cultures while also allowing you to practice another language if you aren’t fluent yet in the local tongue. It’s important to be open to making new friends because you never know who might become a lifelong friend or business contact when you least expect it.

A big motivator for many American expats who move to Puerto Rico is the lower cost of living compared to back home in the US. According to Numbeo, the average monthly expenses for one person including rent, utilities, groceries and transportation are around $1,300 in the capital city of San Juan. This is much cheaper than many places in the US where you will typically pay around $1,500 to $2,000 per month for an apartment or single family home. For this reason, Puerto Rico can be a great place to live if you are looking for an affordable lifestyle without having to sacrifice too much.

A big reason why the number of Americans moving to Puerto Rico has increased in recent years is because of tax incentives created by Acts 20 and 22 which are meant to attract people to move here who can help boost the economy through investment. Basically, these acts allow American citizens who either work for themselves or start their own businesses in Puerto Rico to pay a low tax rate on dividends from that business or rental income from properties they own in Puerto Rico.

Act 22 allows American Citizens who move to Puerto Rico to benefit from a tax exemption for 22 years as long as they spend at least 183 days per year living in Puerto Rico and do not have a permanent residence in the US. This can be interpreted as meaning an American expat may visit the mainland USA for up to 120 days every year while continuing to pay no taxes on their Puerto Rican sourced income. It’s important to note this does not mean you pay 0% tax, instead it means you only pay 4% on dividends from your Puerto Rican business or rental properties which is much lower than what someone would typically have to pay back home.

Setting up utilities for your rental property or apartment is usually the last thing on an expat’s list when they move abroad because it can be tedious and time-consuming which means that many people don’t bother learning how to do it until after they have settled into their new home. When you contact your new utility companies, they will usually send a representative to your property to turn on the power and water and set up an account so that you can pay for these services every month online or over the phone.

People who move abroad should learn as much about the place they are relocating to as possible to feel comfortable in their new home. You can read about Puerto Rico’s history, culture, traditions, politics and more before you move so that you have a better understanding of the island where you are living which will help make the transition easier. Each country has its own set of laws and ways of doing things which you should learn about before you move so that you aren’t surprised by anything when you first arrive.

Puerto Rico has been experiencing an economic downturn over the past decade which means that many people who own investment properties or homes here have been struggling to keep them due to the lack of tenants. If you own real estate in Puerto Rico and you are having trouble renting out any of your properties, hiring a property manager could be the best option for you because it takes the burden of finding new tenants off your shoulders so that you can focus on other things while still making money from your rental.