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

Other tax advantages: Under Act 22 (Individual Investors Act), qualifying Puerto Rico residents are 100% exempted from capital gains tax
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.
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