Save Your Money from Inflation by Moving to Puerto Rico
- Posted: July 1, 2023
- Posted by: Travis Lynk
- Last Reviewed: July 7, 2023
Worried about inflation? Then keep reading for our overview of ways to solve your inflation-related woes and save money.
- Act 60 Tax Incentives
- Additional Tax Incentives
- Opportunities for All
- Buy Real Estate in Puerto Rico
- Puerto Rico Offers a Low Cost of Living
- Fast Internet Speeds Make It a Haven for Remote Workers
- You Can Live Affordably Even in San Juan
- Access Quality Health Care
- Enjoy World-Class Cultural Opportunities
- Dine on Rich Food Without Breaking the Bank
- Travel to and from the Mainland with Ease
Inflation Is Everywhere
If you’ve filled your gas tank, shopped for groceries, or paid the rent lately, you’ve probably wondered why every bill seems to be going up so fast.
Inflation means average prices for most goods and services are rising. When inflation increases, purchasing power decreases. Over time, each dollar becomes worth less. Many everyday goods and services can be affected.
How Is Inflation Measured?
The U.S. government calculates and tracks inflation over time through the Consumer Price Index (CPI).
To determine the CPI, the government first comes up with a “basket” of important goods and services (such as food, housing, and transport) that the typical person will likely purchase.
Adding the cost of all these goods and services yields the CPI.
The change in the CPI between periods of time—usually, from one year to another—is the inflation rate.
Save Money In Puerto Rico
The island is a popular tourist destination, but many of those who visit Puerto Rico don’t realize that relocating here is also an amazing value that will make your money go further. In fact, it’s one of America’s best-kept financial secrets.
Puerto Rico offers considerable financial incentives to attract businesses and individuals with desirable attributes. Saving money in Puerto Rico as a bona fide resident is easy thanks to various relocation incentives.
Spending some money to relocate to Puerto Rico is a modest investment that can yield staggering returns in tax savings and improve your quality of life.
Act 60 Tax Incentives
Some of Puerto Rico’s top tax incentives are available through Act 60. Although this particular act was signed in 2019, it’s not really a new program. The program actually dates back to 2012, when Puerto Rico passed two pieces of legislation—Act 20 and Act 22—that were later updated and merged to create Act 60. Act 60 provides special benefits for eligible individual investors as well as businesses on the island that receive income from customers off the island.
Thanks to these generous incentives for those who meet eligibility requirements, Puerto Rico has welcomed thousands of new residents who have saved a fortune by moving from the mainland to the island.
The Individual Resident Investor Tax Incentive
How exactly have they benefited under Act 60? The federal government does not tax residents of this U.S. territory (Puerto Rico’s government does, though). Furthermore, qualified individual investors who relocate to the island can enjoy a 100% exemption from Puerto Rico income taxes on all cryptocurrency assets, dividends, interest, and short-term and long-term capital gains.
The Export Services Tax Incentive
For qualified businesses, there’s an exceptionally low 4% corporate tax. Contrast that with the regular 21% corporate tax rate (plus state tax, in most cases) on the mainland!
Eligible businesses aren’t taxed on distributions from earnings and profits either and enjoy reduced state and municipal taxes.
Additional Tax Incentives
Depending on your profession, you might benefit from even more tax incentives upon relocating.
For example, there’s the Young Entrepreneur Act (formerly known as Act 135). Young people (between the ages of 16 and 35) who are pursuing entrepreneurial programs on the island can benefit from generous tax incentives, including a 0% income tax rate and complete tax exemptions on property and municipal taxes.
Puerto Rico is also offering financial incentives to professional physicians, professional researchers or scientists, and other difficult-to-recruit professions.
Opportunities for All
These benefits just scratch the surface; Puerto Rico offers opportunities to save money for everyone. Thanks to Act 60 and other tax incentives on the island, it won’t matter as much that inflation is eroding the value of each dollar.
You’ll keep more of those dollars to save or spend as you wish.
Buy Real Estate in Puerto Rico
To be eligible for such low taxes, you must meet a series of requirements to become a bona fide resident of Puerto Rico. One of these involves purchasing real estate there within two years of obtaining this special tax decree. The property must remain your primary residence for as long as the decree remains in force. Fortunately, you can choose from a vast selection of high-quality housing on the island.
Considerations such as location, funding, how to search for a property, and closing the transaction are important, so keep these tips for buying a home in Puerto Rico in mind. Be sure to educate yourself on potential pitfalls associated with buying real estate so everything goes as smoothly as possible. Real estate has been booming. It’s easy to see why when the island has so much to offer in terms of luxury, security, and comfort.
The Benefits of Moving to Puerto Rico
Puerto Rico Offers a Low Cost of Living
Reasonable local taxes and the overall low cost of living have also made this sunny Caribbean paradise an attractive option for many businesses and individuals. Moving here will probably save you from 5% to 70% off the cost of living on the mainland, with the greatest cost of living savings to be found in smaller Puerto Rican cities.
Fast Internet Speeds Make It a Haven for Remote Workers
Are you a full-time remote employee? It’s easy and inexpensive to stay connected and work remotely on the island.
Puerto Rico is heaven for remote workers and tech workers thanks to its advanced IT infrastructure, lightning-fast internet connections, and 5G networks that are rapidly expanding all over the island. Fixed wireless internet is available to 100% of San Juan’s residents.
You Can Live Affordably Even in San Juan
The capital area of San Juan is the most popular choice among American ex-pats. It offers affordable housing, good schools, and high-quality living if you look in the right places. You can easily find an apartment in San Juan that charges less than half of the monthly rent for a comparable apartment in New York City.
The San Juan Metropolitan Area is vast; check out our real estate listings for prospective homes that may be a good match for your needs and desires.
Access Quality Health Care
Puerto Rico’s healthcare system is similar to that of the mainland and is one of the best in the Caribbean. You’ll find the highest-quality medical facilities with the most modern equipment and greatest number of English-speaking healthcare professionals in big cities like San Juan.
Prices for health services and health insurance also tend to be lower than elsewhere in the United States, but be aware that wait times on the island tend to be longer.
Enjoy World-Class Cultural Opportunities
Puerto Rico offers far more than excellent coverage of your basic necessities. You can fill your free days and nights with exotic sightseeing opportunities and the familiar comforts and conveniences of home if you wish.
Historical and Natural Attractions in and around Old San Juan
Savor Puerto Rican culture and history in Old San Juan, which offers historic Spanish forts, wondrous museums, and great local cuisine.
Enjoy a fresh, steaming cup of Puerto Rican coffee while you watch crystal-blue waves lap at the white and golden sands of beautiful beaches.
Incredible Day Trips
Here you can take a day trip to El Yunque, the only tropical rainforest in the US national forest system. Or journey to the famous salt flats, wildlife refuge, and pristine beaches of Cabo Rojo on the island’s southwestern coast.
Familiar U.S. retailers, from Burger King and Costco to CVS and Walmart, can be found all over the island. San Juan is also home to Plaza las Americas, one of the largest shopping malls in Latin America. There are many grocery stores to choose from.
Dine on Rich Food Without Breaking the Bank
You can enjoy a delicious meal in a Puerto Rican restaurant for less than half the cost of a similar meal on the mainland.
For a cheap lunch in a centrally located restaurant, go to Tropical Taste for genuine Puerto Rican food. Located in Old San Juan, Tropical Taste offers a variety of dishes the locals eat. Take your pick from among 10 different types of plantain-based mofongo. You can also order one from various other reasonably priced dishes centered on chicken, pork, crab, fish, shrimp, or skirt steak.
Alternatively, consider dining at other excellent value restaurants in San Juan such as Café Manolin, La Cueva del Mar, Puerto Criollo, Sofia’s Old San Juan, and Vagón. Plentiful food kiosks and trucks also offer tasty cheap eats.
Travel to and from the Mainland with Ease
You can find cheaper flights between Puerto Rico and the mainland than you might think, with regular nonstop flights available to and from cities on the East Coast and in the Midwest.
Your Accounts Can Inflate with PRelocate
As many tourists know, visiting Puerto Rico on vacation is a great way to spend a few days or weeks. But why stop there? Let PRelocate do even more to save you money, lower your taxes, and compound your gains by helping you to establish residency in Puerto Rico. The overall low cost of living relative to the mainland and the unparalleled tax benefits here will go a long way in helping you counter the effects of high inflation.
Big tax breaks and an affordable cost of living. Free access to hundreds of spectacular beaches. A vibrant culture and culinary scene. You can have it all and so much more if you establish residency on the Island of Enchantment.
Only a few companies are government-licensed Qualified Promoters under Act 60, and PRelocate is one of them. We’ve spent years helping many others to navigate the complexities of moving to Puerto Rico.
PRelocate also has in-depth expertise on housing across the island. We can provide critical guidance to new homebuyers and real estate experts alike. Our delighted clients have taken full advantage of the benefits that come with living here.
Let us help you too.
Our team provides top-notch support and is accepting applications for relocation. We’re happy to discuss anything related to your move. And once you’re on your way, we’ll help you get settled into your new dream home easily with our welcome package for new residents of the island. This orientation and services setup (a package valued at $849) is free for all of our clients; you can read the details here.
Contact PRelocate today to save time, money, and effort as you prepare for your incredible new life in the Caribbean.
Disclaimer: Neither PRelocate, LLC, nor any of its affiliates (together “PRelocate”) are law firms, and this is not legal advice. You should use common sense and rely on your own legal counsel for a formal legal opinion on Puerto Rico’s tax incentives, maintaining bona fide residence in Puerto Rico, and any other issues related to taxes or residency in Puerto Rico. PRelocate does not assume any responsibility for the contents of, or the consequences of using, any version of any real estate or other document templates or any spreadsheets found on our website (together, the “Materials”). Before using any Materials, you should consult with legal counsel licensed to practice in the relevant jurisdiction.