Puerto Rico is working to become one of the most serious threats to the U.S.’s taxation empire in the entire world, all because U.S. citizens per an old taxation agreement become exempt from U.S. income taxes if they become residents of the territory. Under Puerto Rico’s remarkable new tax regime, U.S. citizens who become residents of Puerto Rico can potentially find themselves paying zero capital gains taxes, zero dividend taxes, zero property taxes on their new corporate residence, and a minimal 4% flat business tax on income from their business, the only catch being you have to open your business in the commonwealth and not service Puerto Ricans.
The setup is perfect for hedge fund managers, as well as software businesses and internet entrepreneurs.
The Puerto Rican government, which has slowly been abandoning its socialists ways which led it to bankruptcy, is actively perusing free-market reforms and is reportedly seeking to become “an alternative to Singapore.”
Singapore is one of the most free-market tax havens in the world, but citizens of the country are not allowed to have dual citizenship, if they’re U.S. citizens living there they must pay U.S. income taxes in full, and if they choose to renounce their U.S. citizenship to live there full-time they get looted like Facebook’s Eduardo Saverin by the U.S.’s draconian exit tax. Puerto Rico on the other hand is completely open to U.S. citizens, and actually can exempt them from U.S. income taxes if they become residents. That means there is no need for U.S. citizens looking to lower their tax bill to give up their U.S. citizenship in order to escape the U.S.’s previously inescapable global income tax, nor to avoid the U.S.’s exit tax.
Read More at informationliberation.com . By Chris.