Caribbean & Atlantic · Greater Antilles
Puerto Rico
The only lawful way for a US citizen to stop paying US federal income tax on investment income without expatriating — and the single highest-risk item in this file.
Tax position
- Income tax (top)
- Puerto Rico ordinary rates up to 33% plus surtax; under an Act 60 decree, 0% or 4% on covered passive income only. US-source and non-covered income remains taxable at full US federal rates up to 37%.
- Capital gains
- 0% on post-residency gains for pre-2027 applicants (to 2035); 4% for applicants from 2027. Pre-residency long-term gains: 5% Puerto Rico — but US-source and fully federally taxable if sold within 10 years of the move.
- Wealth tax
- none
- Inheritance tax
- none in Puerto Rico — BUT US federal estate and gift tax applies in full to a US citizen resident in Puerto Rico. Act 60 does nothing for estate tax.
- Special regime
- Act 60 (Chapter 2 Individual Resident Investor and Chapter 3 Export Services), reformed by Act 38-2026
- Territorial
- No — worldwide income taxed
- CFC rules
- Yes
- Exit tax
- No
- CRS
- Not participating
Closed — listed so you do not chase them
Is Puerto Rico actually right for your family?
We will tell you if it is not. That is the whole service.