Puerto Rico - Passive Income Shelter (Act 22)

[msbearkeley]

Wondered if anyone on the board is taking advantage of this or has researched it.

From the article below and preliminary research, it looks like capital gains and passive income (including rental property income) earned for PR residents (as defined by Act 22) would be exempt from Federal Taxation.

Puerto Rico Expands Tax Haven Deal For Americans To Its Own Emigrants - Forbes

I saw an old post about Act 22 on this forum when it first came out but nothing recent so thought I'd check and see if anyone knows anything more about this.

We are considering PR as a retirement destination but if this is the case, a no brainer...or on the other hand, is it just too good to be true. Thoughts?

Thanks!

 

[REWahoo]

Here's a discussion of the topic from last September: http://www.early-retirement.org/forums/f28/puerto-rico-act-22-a-73489.html