Deemed as America's tax haven, the small nation's allure is not only its beautiful beaches but also its very welcoming taxation laws. Puerto Rico tax advantages makes the place more inviting than ever especially to people whose income is largely generated from investment returns. To prove that the place is gaining ground when it comes to being a tax shelter, one hedge fund has already decided to set up shop in the archipelago's capital.
The place has its own tax laws even if the unincorporated US territory's citizens still have to pay federal taxes. Experts say, it's the income tax advantages that make living in this Caribbean island a great idea.
A chief tax exclusion in the island is that its residents are not subjected to personal income tax provided that this particular income is generated in the archipelago. Those planning to reside in the island nation to take advantage of the island's low taxes should keep in mind though that residency requirements need to be fulfilled for these laws to be effective. The demands are not absurd at all so these requirements should not hinder the rich to set up shop in the Caribbean destination.
While taxation is not a problem, the economic woes in the nation are a few of the things that investors are worried about. However, investors have faith that the United States will never let the country go under.
Puerto Rican tax bonuses are unquestionably beneficial for investors even if these tax laws can also cause San Juan to go under considering that it is located near other Caribbean islands that offer the same tax incentives. In the year 2006 when the US decided to bring back regular taxes for manufacturing products, many businesses that moved to the Caribbean destination to take advantage of the tax cuts transferred the ownership of their companies to the Cayman Islands. This is a sorry situation of course but this does not mean that San Juan can be crossed out as a major destination for real low taxes.
By 2013, the small nation started getting more attention for providing tax shelter for under-the-radar millionaires. A number of American executives who were interviewed by the New York Times talked about why they have chosen to live in Puerto Rico. Puerto Rican officials also confirmed with the New York Times that a number of US citizens have already filed for Puerto Rican residency.
Those who plan to move to the Puerto Rican capital say that the savings are substantial. The savings, according to them, would amount to six figures yearly.
Having millionaires move to this part of the Caribbean is good for the Commonwealth but Puerto Rican officers said early this year that they are hoping to reel in the big fish. Getting more billionaires to move to Puerto Rico will make the place a famous low-tax destination like Ireland or Singapore.
The warm weather, the beautiful beaches and the rum makes the archipelago a wonderful destination but the main reason for the rich who have decided to move to this part of the Caribbean is the Puerto Rico tax advantages they can benefit from. The nation will of course reap a number of benefits from this situation including a boom in all major markets in the area.
The place has its own tax laws even if the unincorporated US territory's citizens still have to pay federal taxes. Experts say, it's the income tax advantages that make living in this Caribbean island a great idea.
A chief tax exclusion in the island is that its residents are not subjected to personal income tax provided that this particular income is generated in the archipelago. Those planning to reside in the island nation to take advantage of the island's low taxes should keep in mind though that residency requirements need to be fulfilled for these laws to be effective. The demands are not absurd at all so these requirements should not hinder the rich to set up shop in the Caribbean destination.
While taxation is not a problem, the economic woes in the nation are a few of the things that investors are worried about. However, investors have faith that the United States will never let the country go under.
Puerto Rican tax bonuses are unquestionably beneficial for investors even if these tax laws can also cause San Juan to go under considering that it is located near other Caribbean islands that offer the same tax incentives. In the year 2006 when the US decided to bring back regular taxes for manufacturing products, many businesses that moved to the Caribbean destination to take advantage of the tax cuts transferred the ownership of their companies to the Cayman Islands. This is a sorry situation of course but this does not mean that San Juan can be crossed out as a major destination for real low taxes.
By 2013, the small nation started getting more attention for providing tax shelter for under-the-radar millionaires. A number of American executives who were interviewed by the New York Times talked about why they have chosen to live in Puerto Rico. Puerto Rican officials also confirmed with the New York Times that a number of US citizens have already filed for Puerto Rican residency.
Those who plan to move to the Puerto Rican capital say that the savings are substantial. The savings, according to them, would amount to six figures yearly.
Having millionaires move to this part of the Caribbean is good for the Commonwealth but Puerto Rican officers said early this year that they are hoping to reel in the big fish. Getting more billionaires to move to Puerto Rico will make the place a famous low-tax destination like Ireland or Singapore.
The warm weather, the beautiful beaches and the rum makes the archipelago a wonderful destination but the main reason for the rich who have decided to move to this part of the Caribbean is the Puerto Rico tax advantages they can benefit from. The nation will of course reap a number of benefits from this situation including a boom in all major markets in the area.
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