Puerto Rico Tax Haven

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Highlights

Puerto Rico’s Act #20 and Act #22 provides incentives for high net worth U.S. citizens to move to Puerto Rico and potentially reduce their 39.6% federal income tax (plus any applicable state tax) to a 0% – 4% Puerto Rico income tax rate

Highlights

Act 20 CAN apply to both software development services performed in Puerto Rico for non-Puerto Rican clients, and Saas services provided to non-Puerto Rican clients if the server is located in Puerto Rico.

Highlights

Puerto Rico's Act 20 and Act 22 has attracted a lot of buzz in the offshore community as it effectively slashed corporate tax rates to 4% gives incentives to people who decide to get a Puerto Rican residency
US tax exemptions: Under Puerto Rico’s Controlled Foreign Corporation (CFC) system, income generated from selling products to the United States are exempt from US taxes.
Other tax advantages: Under Act 22 (Individual Investors Act), qualifying Puerto Rico residents are 100% exempted from capital gains tax