It’s not zero income tax for all investments. It’s only zero income tax for investments IN Puerto Rico, to compensate for the high risk of investing in Puerto Rico. Interest and dividends for investments outside of Puerto Rico are still taxed at regular US Federal Rates. The 2017 bankruptcy of the Puerto Rican government is evidence of the high risk of investing in Puerto Rico, not to mention hurricane risk, earthquake risk, tsunami risk, mosquito borne disease risk, corruption risk, power/water/communications outage risk, unfavorable age demographics, brain drain, to name a few risk factors. A financially solid, well managed company, country, or territory or individual will merit a lower interest rate due to a lower risk profile. Meanwhile, a financially mismanaged place like Puerto Rico deserves a higher return to compensate for the far higher risk.
Why’s Puerto Rico’s Attractive as a Tax Haven
March 11 (Bloomberg) — Barry Breeman, Caribbean Property Group Cofounder, discusses the tax laws in Puerto Rico and the push to make the commonwealth a tax haven. He speaks on Bloomberg Television’s “Market Makers.” (Source: Bloomberg)
Puerto Rico, Billionaire Haven: Paulson Makes Move
Sept. 23 (Bloomberg) — Billionaire hedge funder John Paulson has just bought the seven star St. Regis Bahia Beach resort. This purchase may mark the first step in Paulson becoming a central figure in the Puerto Rican business world. Bloomberg Television’s Stephanie Ruhle reports.(Source: Bloomberg)
‘All In’ for Puerto Rico: Wealthy Bet on the Island
June 23 (Bloomberg) — Puerto Rico created Acts 20 and 22 in 2012, hoping to attract businesses and individuals to the island by offering significant tax benefits on exportservices and individual investment income. In just 18 months, the program has drawn interest from high-profile investors and has raised Puerto Rico’s profile as a business destination. Bloomberg’s Stephanie Ruhle reports.
Puerto Rico Zero Income Tax Good for All: Governor
June 23 (Bloomberg) — Puerto Rico has long been a destination for tourists. Now the government is offering significant tax incentives for companies and investors to make the island their permanent base. Governor Alejandro Garcia Padilla sits down with Bloomberg’s Stephanie Ruhle to discuss Puerto Rico’s competition for business and investment with low-tax U.S. states. (Source: Bloomberg)
Act 20, Act 22, Act 20 of 2012, Act 22 of 2012, Act 60, Act 2022, Acts 2022, Act 20/22, Acts 20/22, Puerto Rico tax incentives, Individual Investors Act, Export Services Act, capital gains, dividend income, exempt 