The city of Puerto Rico has always made headlines for its sandy beaches and vacation spots, not to mention the amazing and wonderful weather. But now it is in the news for a new step that the native government has taken. Puerto Rico Tax breaks, that have recently been announced, will now make this island a tax haven.
This is not a new event with countries like Ireland and Singapore having already done this. The island is now marketing the various benefits that individuals can receive by relocating their funds here. Although it is a part of the commonwealth of the United States, for tax purposes it receives a different treatment.
The good thing about this arrangement is that you do not have to give up your American citizenship. You only need to prove that you were a resident of this island for more than 183 days and during one financial year. Once this fact is established, you can reap the benefits.
Taxes have been reduced on capital gains, which is a major source of income for hedge fund managers, and also on interests and dividend. This might be enough to make companies consider shifting their headquarters here or at least opening up offices in the center. Authorities and business men are already targeting huge profits and investments in Puerto Rico after this announcement was made official. The estimate is that real estate, banking and new ventures, among others, would receive the maximum amount of funds following the slash in tax rates.
The news is already working as it has been reported that several officials who work with smaller firms but come in the category of millionaires have already moved to the island and the government is still receiving applications from several others. But the government really has its sight on roping in a few billionaires for the move.
There is no doubt that this initiative has been prompted by the dire state of the economy, which has consistently been getting poor ranks from all financial agencies. Through this initiative the authorities hope to provide an inflow of investments and cash to the economy, and give it a much needed lift.
But perhaps the real success of this news can be judged by the increase in number of clients and prospective clients with real estate agents. The agents say that recently the requests for views of commercial and residential properties have increased, with a lot of clients flying in from the US. They are wined and dined by the agents and every effort is done to impress them and see a property.
Although new comers still have some reservations about the various facilities that are available in the city, interest is still rampant. People inquire about all kinds of things like grocery stores, medical facilities, vaccinations required against local diseases, allergies most common in the area etc. But with the state popularizing its private schools, beautiful beaches and bargain costs, Puerto Rico tax breaks have been successful in roping in wealthy people.
This is not a new event with countries like Ireland and Singapore having already done this. The island is now marketing the various benefits that individuals can receive by relocating their funds here. Although it is a part of the commonwealth of the United States, for tax purposes it receives a different treatment.
The good thing about this arrangement is that you do not have to give up your American citizenship. You only need to prove that you were a resident of this island for more than 183 days and during one financial year. Once this fact is established, you can reap the benefits.
Taxes have been reduced on capital gains, which is a major source of income for hedge fund managers, and also on interests and dividend. This might be enough to make companies consider shifting their headquarters here or at least opening up offices in the center. Authorities and business men are already targeting huge profits and investments in Puerto Rico after this announcement was made official. The estimate is that real estate, banking and new ventures, among others, would receive the maximum amount of funds following the slash in tax rates.
The news is already working as it has been reported that several officials who work with smaller firms but come in the category of millionaires have already moved to the island and the government is still receiving applications from several others. But the government really has its sight on roping in a few billionaires for the move.
There is no doubt that this initiative has been prompted by the dire state of the economy, which has consistently been getting poor ranks from all financial agencies. Through this initiative the authorities hope to provide an inflow of investments and cash to the economy, and give it a much needed lift.
But perhaps the real success of this news can be judged by the increase in number of clients and prospective clients with real estate agents. The agents say that recently the requests for views of commercial and residential properties have increased, with a lot of clients flying in from the US. They are wined and dined by the agents and every effort is done to impress them and see a property.
Although new comers still have some reservations about the various facilities that are available in the city, interest is still rampant. People inquire about all kinds of things like grocery stores, medical facilities, vaccinations required against local diseases, allergies most common in the area etc. But with the state popularizing its private schools, beautiful beaches and bargain costs, Puerto Rico tax breaks have been successful in roping in wealthy people.
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