Why are you interested in PR?
Moving to Puerto Rico doesn't exempt you from US income taxes.
Actually, I believe it does which is why it was so controversial when PR put this law in place. The terms of the deal basically say that you would have to spend half the year or more in PR. You would also probably be inviting heavy IRS scrutiny. Better be a fluent Spanish speaker as well.
There is zero federal income taxes in PR. So you will pay zero taxes on any PASSIVE income you earn. That's interest and dividends.
I was in PR for a couple of weeks while in the Navy a few years back. Didn't feel the love of us gringo's there much. In fact some were fairly hostile.
Professional neighbor of mine w#rked there on assignment recently & felt the same way. He loved the climate, but almost feared for his safety. He jumped at the next available assignment to get out.
Puerto Rico has other issues and other taxes besides their territorial income tax. If avoiding these taxes is your goal, why not Florida, Texas, Washington, and other no income tax states. Moving to Puerto Rico doesn't exempt you from US income taxes. You appear to already be living in a no-income tax state. Why are you interested in PR?
There have been numerous threads concerning retirees establishing residency in a non-income tax state. This is very easy and allows one to travel widely without worring about state taxes. Of course, trying to keep a home in California, Illinois or another high tax state may raise issues with them attempting to disallow your change in residency.
A couple years ago when I retired to draw a pension, it entered my mind to move across the river into Illinois to save $3k a year in income taxes. But I would have to live on a city park bench to come out ahead as the property taxes would have swallowed up the savings for me.Illinois does not tax qualified pensions including IRA's or social security. My pension, my IRAs, my social security, my wife's IRAs, and her social security; are all untaxed by Illinois. Certainly that may not last forever, but I've been retired for 8 years with a very comfortable income, and have paid no Illinois income tax.
My business trips to PR indicated that unless you are in San Juan, the rest of the island is pretty much a step into poverty and high unemployment (~30%). Much of industry is leaving or has left (refining, drug manufacture (legal), tuna canning, etc. I had my AMEX card hacked there for $18K overnight.
Plus, while the winter weather is nice, the summers are brutal. Everything turns to rust in a matter of a few years, too. Just not a fun place for retiring.
Different strokes. If my life ever went pear-shaped in a major way, I always figured I would start over in PR, preferably Vieques or Culebra.
My business trips to PR indicated that unless you are in San Juan, the rest of the island is pretty much a step into poverty and high unemployment (~30%). Much of industry is leaving or has left (refining, drug manufacture (legal), tuna canning, etc. I had my AMEX card hacked there for $18K overnight.
Plus, while the winter weather is nice, the summers are brutal. Everything turns to rust in a matter of a few years, too. Just not a fun place for retiring.
My business trips to PR indicated that unless you are in San Juan, the rest of the island is pretty much a step into poverty and high unemployment (~30%). Much of industry is leaving or has left (refining, drug manufacture (legal), tuna canning, etc. I had my AMEX card hacked there for $18K overnight.
Plus, while the winter weather is nice, the summers are brutal. Everything turns to rust in a matter of a few years, too. Just not a fun place for retiring.
So have a lot of businesses moved out in the past few decades?
I was there on business in 1982, and the poor sections that I saw didn't strike me as dangerous or poverty stricken, just poor. I didn't encounter any beggars or scammers - it seemed way different from Jamaica (in the same time period) in that regard.
But back them, there was a fair amount of industry in PR, the big electronics companies and pharmaceuticals seemed to all have some presence. I was told there were tax advantages for businesses to locate there, but never heard the details.
-ERD50
+1 A few years ago, we went there in January and rented a car for two weeks. Did a leisurely beach bum drive around the island. It was just fine for that, and we might repeat the trip some day. But I too would never consider retiring there full time, or trying to earn a living there. IIRC, even the poor houses have burglar bars on all the windows. Those are expensive, and not just for decoration.