Puerto Rico Law 22: Individual Investors Act
•The government of Puerto Rico recently enacted the Act to Promote the Relocation of Individual Investors (Act 22 of 2012), the purpose is to attract new high net worth residents to Puerto Rico.
• 0% tax rate on interest and dividend income for New Residents
• 0% tax rate on all short- and long-term capital gains accrued after becoming a New Resident
• 0% federal taxes on Puerto Rico source income
• Rates are guaranteed till 2036 through tax incentives decree.
Puerto Rico Law 20: Export Services Act
• 4% Corporate Tax Rate - Puerto Rican businesses providing services for exportation will enjoy a 4% flat income tax rate on income related to such services
• 100% Tax-Exempt Dividends - Distributions from earnings and profits derived from the export services income of eligible businesses are 100%tax exempt from Puerto Rico taxes.
• 6% Dividend Tax Rate for Puerto Rico shareholders
• 0% Dividend Tax Rate for Non-Puerto Rico shareholders
• 100% Municipal Tax Exemption
• 100% Property Tax Exemption
• Tax Exemption Decrees for up to 45 years - First term of 20 years, renewable for 10 additional years, up to 45 years.
• Elegible Export Services Include: public relations and advertising, professional services, such as legal, tax and accounting, research and development, development of computer programs, investment banking and other financial services.
ALWAYS CONSULT YOUR FINACIAL ADVISOR AND / OR CERTIFIED PUBLIC ACCOUNTANT
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