Stateless

Puerto Rico

PR
Pros
Significant tax exemptions on capital gains and dividends through Act 60 for qualifying residents.
Access to United States markets and legal protections without federal income tax on local income.
Strategic Caribbean location offering a high quality of life and proximity to American trade hubs.
Cons
Fragile electrical infrastructure and high utility costs leading to frequent power outages and operational disruptions.
Systemic government bureaucracy and corruption issues slowing down permit processes and private sector growth.
High local sales taxes and complex labor regulations increasing the overall cost of doing business.

Long story short: Here, you pay 4% corporate tax and 0% on dividends and capital gains, all while staying under US law and the dollar. It's the tax hack entrepreneurs whisper about over rum in Condado.

The catch: the power grid fails constantly, local administration drags its feet, and corruption has rotted local politics for decades. You also need to actually live here more than half the year to keep the tax break.

Other than that: a solid US-grade banking system, safe upscale neighborhoods, great food, and stunning scenery between beaches and rainforest.

VERYLOW TAX 4/10 HOLDING 1.3/10 DIVIDENDPIPELINE 0.5/10 CRYPTOHAVEN 2/10 PRIVACYGRADE 2/10
─ On this page
01 Will Puerto Rico tax what you earn? 02 Will Puerto Rico tax what you own? 03 Is it easy to run a company in Puerto Rico? 04 Is Puerto Rico good for your holding company? 05 What does it cost to come and go from Puerto Rico? 06 Is your money watched in Puerto Rico? 07 Is Puerto Rico itself a liability? 08 Will you feel free in Puerto Rico? 09 Is Puerto Rico connected to the rest of the world?

Will your income be taxed?

Long story short: YES, A LOT.
Income gets fleeced in Puerto Rico (top marginal rate 33%), but the residency test is surprisingly hands-off.

The bill is brutal for residents; the whole game is simply not to become one by accident.

01.1 Income tax
Personal income tax
0 → 33%
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De quoi s’agit-il ?What residents pay on what they earn: salary, freelance income, sometimes dividends too. We show the system (flat or progressive) and the top rate.
Source et informations complémentairesprogressive · 5 brackets
Bracket (USD)Rate
0 – 9,000exempt
9,000 – 25,0007%
25,000 – 41,50014%
41,500 – 61,50025%
61,500 +33%
01.2 Tax residence test
A single active rule is enough to make you tax-resident.
183-day rule
Economic interest
does not exist here
Family centre
does not exist here
Habitual abode
Extended-stay test
does not exist here
Income tax simulatori

If you earn a year, you will pay .

Roughly effective, with a marginal rate of .

+5%
Applied on the excess of total net taxable income over USD 500,000 (Gradual adjustment tax)

Will your wealth be taxed?

Long story short: YES, BUT LIGHTLY.
Puerto Rico takes a light trim on capital gains (15% at the top), with no annual wealth levy and no inheritance regime.

Your portfolio compounds with barely any friction; the state only shows its face when you sell. And even then, politely.

02.1 Investment income
Capital gains
15%
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De quoi s’agit-il ?The tax on your profit when you sell something that gained value: stocks, property, crypto, a business. Some countries skip it entirely.
Source et informations complémentairesflat · +5% net taxable income exceeds USD 500,000 (gradual adjustment tax)
Dividend tax
15%
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De quoi s’agit-il ?What you pay when your company sends you dividends. It stacks on top of corporate tax, so the combined bill is what really counts.
Source et informations complémentairesflat
Interest income
33%
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De quoi s’agit-il ?The tax on income from savings, bonds and loans. Matters when choosing where to park your cash.
Source et informations complémentairesprogressive
Bracket (USD)Rate
0 – 9,000exempt
9,000 – 25,0007%
25,000 – 41,50014%
41,500 – 61,50025%
61,500 +33%
02.2 Wealth & estate
Wealth tax
NONE
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De quoi s’agit-il ?A yearly tax on what you own above a threshold, whether you sell or not. Most countries scrapped it; a few still run one.
Source et informations complémentairesno annual wealth tax · no real-estate wealth tax · no net-worth assessment
Inheritance system
NONE
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De quoi s’agit-il ?What heirs pay on what they inherit, by category (spouse, children, others), with allowances and top rates. Plenty of countries charge nothing at all.
Source et informations complémentairesno estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply.
02.3 Crypto
Crypto · tax regime
PROGRESSIVE
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De quoi s’agit-il ?How crypto gains are taxed here: zero, flat, progressive or grey zone. Includes whether crypto-to-crypto swaps count as taxable events.
Source et informations complémentairesRate: 33% · Puerto Rico classifies crypto as property. Standard residents pay 15% on long-term capital gains (held >12 months) and up to 33% on short-term gains. However, under the Act 60 (Individual Resident Investor) incentive, qualified residents pay 0% on capital gains accrued after becoming a resident. Crypto-to-crypto trades are considered taxable events. Sources: PR Internal Revenue Code Section 1023.02, Act 60-2019 (Incentives Code).
Crypto-to-crypto
TAXABLE
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De quoi s’agit-il ?How crypto gains are taxed here: zero, flat, progressive or grey zone. Includes whether crypto-to-crypto swaps count as taxable events.
Source et informations complémentaireseach swap counts as a disposal — gains realised at every trade
FATF travel rule
NOT SIGNED
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De quoi s’agit-il ?Does this country enforce the crypto Travel Rule? If yes, exchanges must identify senders and recipients, like banks do for wire transfers.
Source et informations complémentairesno information-sharing obligation on VASP transfers

Easy to run a company there?

Long story short: NO.
Corporate tax in Puerto Rico is 37.5%, no IP-box mercy, VAT at 11.5 on top.

Operationally, running a company here is fine; fiscally, the state helps itself to a fat slice of every unit of profit. You do the work, they skim the cream.

03.1 Rates
Corporate tax
18.5 → 37.5%
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De quoi s’agit-il ?What companies pay on their profits. The headline rate is a starting point: IP boxes and holding regimes often pull the real rate lower.
Source et informations complémentairesprogressive · +50% Improperly accumulated earnings to prevent the imposition of tax on shareholders or partners · +10% Deemed dividend amount attributable to a foreign owner (50% or more ownership) · +10% Dividend equivalent amount for corporations operating as a branch (Branch Profit Tax)
Bracket (USD)Rate
0 – 25,00018.5%
25,000 – 100,00023.5%
100,000 – 150,00033.5%
150,000 – 200,00034.5%
200,000 – 250,00035.5%
250,000 – 300,00036.5%
300,000 +37.5%
VAT standard rate
11.5%
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De quoi s’agit-il ?The sales tax baked into almost everything you buy here. One standard rate, plus reduced rates on things like food or books.
Source et informations complémentaires2 distinct tiers in force
0%11.5%
Food & drink
0%
food
11.5%
non-alcoholic
11.5%
alcohol
Print media
11.5%
ebooks
Culture
11.5%
cultural events
11.5%
cinema
11.5%
theatre
11.5%
museums
11.5%
sports
Hospitality
11.5%
restaurants
11.5%
takeaway
Health
0%
pharma
Digital & telecom
11.5%
digital
03.2 Regime & registry
IP Box · Patent Box
NONE
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De quoi s’agit-il ?A discounted tax rate on income from patents, software and designs, often 5 to 10%. A magnet for tech and licensing businesses.
Source et informations complémentairesno IP regime · IP income taxed under standard corporate rules
Misuse of corporate assets
NO CRIMINAL
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De quoi s’agit-il ?If you spend company money on yourself, is it a crime (prison possible) or a civil matter? Some countries prosecute even sole shareholders.
Source et informations complémentairesno criminal liability · Puerto Rico follows the United States corporate law tradition (specifically modeled after Delaware). In the case of a sole shareholder and a solvent company, the personal use of corporate funds is not a criminal offense because the owner's consent precludes the 'intent to defraud another' required by statutes like Article 230 of the Puerto Rico Penal Code (Fraudulent Administration). Instead, such conduct is treated as a civil matter under the 'alter ego' or 'piercing the corporate veil' doctrines, or as a tax violation (constructive dividends) under the Puerto Rico Internal Revenue Code.
Shareholders privacy
PRIVATE
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De quoi s’agit-il ?How visible a company's shareholders and directors are: free public registry, paywalled, restricted or fully private. More privacy, but sometimes warier banks.
Source et informations complémentairesPuerto Rico Department of State - Registry of Corporations
Directors privacy
PUBLIC
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De quoi s’agit-il ?How visible a company's shareholders and directors are: free public registry, paywalled, restricted or fully private. More privacy, but sometimes warier banks.
Source et informations complémentairesPuerto Rico Department of State - Registry of Corporations
03.3 Incorporation cost
In this country, the most standard company form is called Compañía de Responsabilidad Limitada (Limited Liability Company (LLC)). The costs below are for incorporating a company in its simplest form, for reference only.
Certificate of Formation (Department of State Filing Fee)
USD 250
Professional Incorporation Service (Operating Agreement, EIN, and SURI registration)
USD 750
Total
USD 1,000

A good fit for a holding?

Long story short: NO.
Puerto Rico has no treaty network at all, which buries the holding question, full stop.

Every dividend in or out eats the statutory withholding at full rate, and no domestic regime can patch a hole that sits on the source side. Don't park a holding here.

04.1 Substance & exemptions
Territorial · individuals
WORLDWIDE
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De quoi s’agit-il ?Does this country tax only local income (territorial) or everything you earn worldwide? Territorial means your foreign income stays untaxed here. Huge.
Source et informations complémentairesworldwide income taxation regardless of source
Territorial · corporates
WORLDWIDE
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Source et informations complémentairesworldwide corporate taxation
Participation exemption
NONE
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De quoi s’agit-il ?Can a holding company receive dividends from its subsidiaries tax-free? The cornerstone of any serious holding structure.
Source et informations complémentairesno dividend participation exemption regime
CFC rules
NONE
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De quoi s’agit-il ?Anti-offshore rules: they tax you at home on your foreign company's profits, even if nothing was distributed. Where they exist, offshore setups get tricky.
Source et informations complémentairesno controlled foreign corporation regime · foreign-source corporate income out of scope
04.2 Withholding tax · non-resident
WHT · dividends
10%
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De quoi s’agit-il ?The cut this country takes when it sends dividends, interest or royalties abroad. Tax treaties can shrink it; blacklists can inflate it.
Source et informations complémentairesnon-resident outbound
WHT · interest
29%
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Source et informations complémentairesnon-resident outbound
WHT · royalties
29%
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Source et informations complémentairesnon-resident outbound
Tax-haven WHT
NONE
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Source et informations complémentairesno punitive rate on record
04.3 Treaty network
Treaties signed
0
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De quoi s’agit-il ?Deals with other countries to avoid double taxation and cut withholding taxes. The bigger the network, the easier your money moves across borders.
Source et informations complémentairesactive
Treaties pending
—
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Source et informations complémentairesin negotiation
Tax treaty network
origin · PR 0% > 0% no treaty
⌖
Inspect a country
Hover any country on the map to read its withholding-tax treaty with PR.
Country Status Dividends Interest Royalties
∅ // no treaties match
treaties /

Easy to come and go?

Long story short: SOME.
Puerto Rico taxes your worldwide income while you're resident, but at least the exit is free: no exit tax on the way out.

Leaving costs you paperwork, not money; your unrealised gains walk out the door with you, untouched.

05.1 Exit & dual nationality
Exit tax
NONE
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De quoi s’agit-il ?What the country charges you for leaving: tax on your unrealized gains, as if you'd sold everything at the border. Here you'll see if it exists and when it triggers.
Source et informations complémentairesno triggers active · residence change tax-free · no deemed-disposal mechanism
Dual citizenship
ALLOWED
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Source et informations complémentairesnaturalised citizens may keep their existing nationality
05.2 Citizenship paths
Residence
5 years
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Source et informations complémentairesavailable path to naturalisation
Marriage
3 years
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Source et informations complémentairesavailable path to naturalisation
Birth
jus soli
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Source et informations complémentairesavailable path to naturalisation
Descent
1 gen
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Source et informations complémentairesavailable path to naturalisation
Investment
—
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Source et informations complémentairesnot available

Is your money watched?

Long story short: NO.
Nobody's reading over your shoulder in Puerto Rico. It has joined almost none of the big automatic-exchange machines (CRS, FATCA, CARF, MLI, MAAC), and its corporate registries are non-public.

Your account movements stay out of foreign tax offices; your name stays out of search boxes. Here, discretion isn't a perk; it's the factory setting.

Multilateral reporting frameworks 0/9 active
CRS
—
CARF
—
FATCA
—
MLI
—
BEPS
—
MAAC
—
GLOBAL FORUM
—
EOIR
—
CRYPTO TRAVEL RULE
—

Is it blacklisted?

Long story short: SOMEWHAT.
Puerto Rico is flagged by a few national tax administrations (drawn from FR/ES/PT/BR) and sits outside the FATF club.

The friction is selective: anti-abuse rules fire on specific corridors, and counterparties ask more questions than usual. Neither the FATF nor the EU has it on their lists, which keeps the damage contained: a nuisance, not a scarlet letter.

Blacklist exposure Listed by 1 authority
EMBARGO
un / us / eu sanctions
FATF
grey / black list
EU
non-cooperative list
FRANCE
ETNC list
SPAIN
tax-haven list
PORTUGAL
favourable regimes
BRAZIL
low-tax list

Do you feel free there?

Long story short:
Not enough data to tell how free you'd actually feel in Puerto Rico.

08.1 Press freedom
Press freedom · RSF index
—
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De quoi s’agit-il ?The RSF world ranking of press freedom. A good proxy for censorship and civil liberties. The lower the rank, the freer the press.
Central bank digital currencyi
NONE
no announced CBDC program · no pilot · no retail or wholesale prototype on record

Connected to the world?

Long story short: POORLY CONNECTED.
The two rails that matter are both dead in Puerto Rico. Stripe won't onboard you, so card payments mean a foreign structure or a local processor with its own rules. Amazon doesn't deliver either.

Some secondary services run (3/11), but for an online business this is swimming against the current.

Accept payments 2/6 available
Stripe
card payments
PayPal
wallet payments
Adyen
enterprise psp
Mollie
eu payments
GoCardless
direct debit
Paddle
merchant of record
Bank and move money 1/3 available
Wise
multi-currency
Revolut
personal banking
Revolut Business
business banking
Buy and sell on Amazon 0/2 available
Amazon
consumer delivery
Amazon Seller
marketplace selling
SEE ALSO

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