Contractor · San Diego, CA · Member since 2018 · 432 posts · 221 votes
I heard a podcast where Peter Schiff explained he doesn’t pay federal income tax because he “moved” to Puerto Rico. I got curious and looked up whether Puerto Ricans have to pay capital gains tax, and it sounds like basically.. they don’t (??). Can someone clarify what the deal is with Puerto Rico? Thanks.
Developer · Aguada, PR · Member since 2014 · 927 posts · 278 votes
6y
you are thinking of the new ACT 60. its not as easy as it sounds, but it can be done. check out all the rules and up front costs associated with it.
after a bit of research we determined rental income does not qualify under the ACTs, so we decided not to participate and just pay the income tax. capital gains is different, after the 15k up front cost, you need to determine how much you need to make to offset the initial 15k to the government.