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Puerto Rico

PR

Puerto Rico offers a unique jurisdictional arbitrage for the liberty-minded entrepreneur. As a US territory with fiscal autonomy, Act 60 provides unparalleled tax incentives, including 0% capital gains and 4% corporate rates. While local bureaucracy and infrastructure present hurdles, the US legal framework ensures property rights and stability. Despite historical corruption challenges, the island remains a premier Caribbean hub for those seeking a tropical lifestyle paired with aggressive tax optimization and the protection of American constitutional standards.

Upsides
  • Significant tax exemptions on capital gains and dividends through Act 60 for individual investors.
  • Access to United States legal protections and currency without federal income tax obligations.
  • Strategic Caribbean location offering a high quality of life and proximity to American markets.
Downsides
  • Fragile and expensive electrical infrastructure prone to frequent outages and high operational costs.
  • Pervasive government bureaucracy and systemic corruption hindering efficient business operations and development.
  • High local sales taxes and complex regulatory requirements despite federal tax advantages.

Taxation

Corporate Tax 23.5–37.5%
Income Tax 0–33%
VAT 11.5%
Tax Treaties 0
IP Box ? Intellectual Property Box. A tax incentive offering reduced rates on income derived from patents, copyrights, and other intellectual property. No
Exit Tax ? A tax on unrealized capital gains triggered when a taxpayer moves their tax residence to another country. No

Compliance

BEPS ? Base Erosion and Profit Shifting. An OECD framework to combat tax avoidance strategies used by multinationals to shift profits to low-tax jurisdictions. Non-member
FATF ? Financial Action Task Force. An intergovernmental body that sets standards to prevent money laundering and terrorist financing worldwide. Non-member
FATCA ? Foreign Account Tax Compliance Act. A US law requiring foreign banks to report accounts held by US citizens to the IRS. Non-signatory
CRS ? Common Reporting Standard. An OECD standard for automatic exchange of financial account information between tax authorities globally. Non-signatory

Blacklists

FATF Blacklist ? Countries identified by FATF as having serious deficiencies in anti-money laundering and counter-terrorist financing measures. Clear
EU Blacklist ? The EU list of non-cooperative tax jurisdictions. Countries that fail to meet transparency and fair taxation standards. Clear

Payment Platforms

Stripe Unavailable
PayPal Unavailable

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