Unlike most broke governments that try (and fail) to tax their way to prosperity, Puerto Rico is taking a different approach…
The territory is doing everything it can to recruit productive people – like business owners and investors.
A few years ago the Puerto Rican government passed a number of tax incentive laws, the most famous of which are known as “Act 20" and “Act 22".
Act 20 allows entrepreneurs to start or move certain types of businesses to Puerto Rico and pay just 4% tax.
It's perfect for business owners and self-employed professionals such as financial advisors, internet entrepreneurs, attorneys or a laundry list of other occupations.
Act 22 allows individuals to generate unlimited investment income, subject to a few simple rules, with absolutely zero tax.
These programs are phenomenal for just about ANYONE, whether you’re from Canada, Europe, or China.
But if you happen to be from the (mainland) United States, Puerto Rico’s tax incentives are EVEN MORE compelling.
US citizens are lifelong tax serfs of the federal government. You’re taxed when you earn. You’re taxed when you save. You’re taxed when you spend. And you’re taxed when you die.
Even if you move away and live in a foreign country, Uncle Sam will STILL tax you on 100% of your investment income, and tax you on wage income above a certain threshold.
Yet there is an exception under US tax law.
US citizens who move to Puerto Rico and meet certain qualifications can free themselves entirely of their traditional US tax obligations...
And dramatically cut your taxes.
And by the way, US tax code doesn’t even require you to live full time in Puerto Rico in order to qualify for this exemption. You could still spend several months a year on the mainland.
So in other words, by spending 6 months on the beach in Puerto Rico you could virtually eliminate your taxes. And it’s all completely legal.
I know, this sounds almost too good to be true. But some of the smartest and richest people in the world are already taking advantage of Act 20 and Act 22.