The Truth About ZERO Tax In Puerto Rico (what the media doesn't tell you)
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- Опубліковано 6 лип 2021
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Puerto Rico tax programs explained. Act 20, Act 22, & Act 60.
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Puerto rico gets depicted in the news as a cheap and easy way to save all of your tax dollars with the flip of a switch
That’s not necessarily true. Let’s talk about the truth behind Puerto Rico’s tax savings program, what you actually save, and what you really need to do in order to reduce your tax bill.
When PR tax savings are mentioned it’s really referring to one of the two main tax programs offered. Act 20 and Act 22. Or Act 60 which is just is the combination of both of them.
ACT 20:
Also known as the “export services act” is the program that allows a business owner or self employed individual to live in Puerto Rico and save a ton of their business’s profits.
This is especially beneficial in businesses where there aren’t many write off opportunities. A few examples of businesses that highly benefit are consulting services, selling digital content, or really anything that doesn’t require a ton of assets.
The main benefits under Act 20 are you get a low 4% PR income tax (with no US federal tax on exported services) and a 50% reduction of municipal tax.
ACT 22:
Also known as the Individual Investors Act. This program offers 0% short and long term capital gains tax and 0% tax on dividends.
However with this benefits comes with significant cost. So let's break everything down so you can better understand the pros and cons of this program.
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I am not a financial advisor. This is not financial advice
Excellent job in illustrating the tax savings examples with the Act 20 program.
Good morning Max! Thanks for your video! Have a blessed and wonderful day! Blessings to you and your business! 😍🤗💖🤩💯
Thank you for this video. My business partner and I are thinking about making this move and this is the best video I've seen of people in our situation.
Glad to help, good luck!
I’m glad you’re letting us know about life in PR.
Max- funny and informative video. Any recommendations for good accountants you can consult on-shore and a good Act 60 lawyer as well.
Very well done and explained. Thank you
So the part that gets taxed at 4%, I can keep or it has to stay in the business?
Love this breakdown with the table 🙌
Thank You for this video!! I suspected all the hype about moving to PR to save on capital gain taxes came with "hidden caveats", and this is exactly the information that I needed to hear. Still might consider doing it under Act 20, but also weighing the CRT option (for a portion of my portfolio) you discussed in another video :-) Great content!!
thanks for the informative video 💙
Hey max just subscribed and liked the video. You mentioned that you just cant move to puerto rico and cash out the money because you are still subject to 15 percent . Would you still need to apply for the acts you mentioned to get the 15%
Gonna have to rewatch and take notes and research , thanks for sharing.
Will you change your blue XLR cable to a black one please. Thank you.
I am curious. How does the taxes over there work if you are only into crypto and no business? Defi specifically?
Act 22 (Act 60 Part 2) makes sense for retirees and/or HNIs. Once you make around $80-100k annually in dividends and capital gains, then the charitable donations and filing fees would be cheaper than the expected income tax liability.
15% tax still pretty good compare to 35% tax for short term gains in the main land
Excellent info. Thanks Max!
When you are calculating expenses you have if you move to PR,, to get into these programs,,,you ADD Social Security,, like if you don't have to pay SS when you live in the USA,,,
What if you are trading stocks, especially for short term capital gains? Puerto Rico would be a good place to trade from?
More information here: www.pf-cpa.com/income_tax_incentives_for_individual_investors.html
If I move and in the year sell a large profit long term investment, will i not have to pay long term capital gains tax?
Thanks, this is very informative!!
After my 183 days are up and I fly back to the states to my "vacation" home am I allowed to conduct business while I'm back? I have a remote real estate flipping business so I can operate it from anywhere but I'm concerned my income will be forced to come to a standstill when I'm not in Puerto Rico.
The key here is sourced income. Your real estate income made in the mainland is taxed in the mainland. You didn’t source it locally in PR.
I moved a company to PR and they made money , paid five percent of overall taxes I went thru it amigo is great
Great to know it worked out for you!
Do you have an cpa you can refer that understands crypto and Act 20/22 etc. I’m getting passive income from Nodes and planning on moving to PR shortly.
CPA Torres is good for Act 60 stuff however I'm not sure the familiarity with crypto
What if i buy and sell o decentralized exchanges?
is the capital gains exclusion work only for stock capital gains? what about real estate capital gains?
Act 132 - Real Property Market Stimulus Act: taxsummaries.pwc.com/puerto-rico/individual/other-tax-credits-and-incentives
Definitely moving to PR im a day trader and need these cap gain tax savings 15% is alot in my book
Go for it, Armando! PR is a beautiful place
Bienvenido!🇵🇷
Does the decree expire after 15 years or December 31, 2035?
Similar to US Virgin Islands St Thomas
Good morning 😍
Would network marketers benefit?
The only way the people of Puerto Rico
will approve and accept rich people in the island is that they invest on the local economy and make more job opportunities for the locals improving their quality of life.
Whaaaaat🤥
Can you do this and other places like the US Virgin Islands?
The us virgin islands..only pay federal taxes...they have a different tax code...and this is a local benefit from the Puerto Rico 🇵🇷 tax code ( you don't pay federal taxes in Puerto Rico )... you my have to make some homework..if you're looking for some especial tax benefits
@@yankee7664 cool thanks for the info
Also get a CPA to hook it up if not is a mess thru the goverment
Can you do Act 22 and move there six months prior before cashing out anything?
Great question! It's best to consult a tax expert for specific advice on this, but I believe you'd need to meet the residency requirements first 👍
Good morning
The fact he said a virtual mailbox is 150 a month when I pay 150 a year he can’t be trusted
He said $50 a month for starters and really that is the one thing you are hinging you're decision on?
He's talking about a business. If you're a regular worker you're good.
does my family actually need to move too??
Your direct family should in order to avoid issues later
Moving down in June. See you around.
That's fantastic, welcome to the island! 🌴😎
Don’t worry, vlogs are still coming 😎
😁
I would like to retire in Puerto Rico because the people and the food are amazing.
I agree! Puerto Rico is a paradise 🌴
Are business owners the only ones that qualify for this program? Can a remote worker in a salaried position move to Puerto Rico and utilize these tax advantages?
I believe you can..but you better make sure you do your homework.. before you made a decision...( Puerto Rico 🇵🇷 has is own taxes rules and you don't pay federal taxes ) it is a us territory ( colony )...and all Puerto Rican are us citizens ( they don't need a passport to go to the Us )
He trusted the Media 😂
Such a shame, about everybody and everything on that island.
Need your urgent idea about PLTR stock?
I heard you have to donate 5k each to two different pr non profits a year?
Yes for the investors program but not export services
@@MaxMaher oh yup. I’m a trader
@@MaxMaher what’s the total for traders? The 10k nonprofit and the 4% is that it? And whatever mini cost
Good video my man great information!
6:15
bro- what are you talking about- i live here, im act 60- its a 10k donation and NOTHING to pay more. Nothing. zip. like you said. i sit on the beach and trade crypto and pay NOTHING
You pay nothing? 😳
@@MaxMaher 10k donation a year. thats it
@@pb-jl8jlwhat else do you pay annually including the home you had to purchase
Would love to know how this affected owning commercial real estate in the states, and with section 22 how it works!
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Let's go
Im glad that you like living in PR, i was born and raise over there i woudnt live cuz of the living is too expesive and the gross income is brealy over the minimun wage. I do apologize for the rude comments of some puertorrican, we are not like but like every place always hating. Love channel keep doing what you do 👍
Act 20 and 22 are not applicable to the residents of PR. These were created to attract wealthy individuals from the US to invest in broke PR. It is a discriminatory legislation by desperate legislators seeking to attract $. PR has a 11.5% sales tax and quality of life is not comparable to most of the US. IRS investigating whether millionaires in the program actually live in PR as required.
Thank you for the thorough breakdown. Do you have/you should have a separate channel about life in PR. From your roof, I know what area you live in. We have a home in the same neighborhood. Enjoy it. See you at the beach.
Tax free for investors while the island pays billions a year. _Puerto Rico residents pay more in federal income taxes every year than do residents of six U.S. states: "From 1998 up until 2006, when Puerto Rico was hit by its present economic recession, Puerto Rico _*_consistently_*_ paid more than $4 billion annually in federal taxes and impositions into the national fisc." This was more that the IRS collected from taxpayers in six States of the Union: Vermont, Wyoming, South Dakota, North Dakota, Montana, and Alaska, as well as the Northern Mariana Islands.[17][18]_
The biggest deal with PR is crypto… specifically Bitcoin. So for example I mine Bitcoin using ASIC miners. right now Bitcoin is with 28K… if I invest $500,000 and it goes up to 60K or even 100K. And I don’t have to pay capital gains I’ve just made buku bucks.
Way too complicated!!
Hey MAX love Your stuff! I wanted to let you know in case you didn't. AS Long as you have a SS number and are a citizen of the USA You have to PAY Taxes on any & all income earned Globally. It's a bunch a crap, but yet a USA Passport is the most wanted & Coveted of them all they say.. : /
A good reason to give up citizenship.
lol.
The US has an agreement with Puerto Rico that bonafide residents of Puerto Rico are not taxed on Puerto Rican sourced income. So US citizens who become residents of Puerto Rico do not have to pay US taxes on qualified income. Otherwise there would be no reason to move to Puerto Rico and add additional taxes on top of what one is already paying to the US govt.
Please don’t move to Puerto Rico we pay 11% tax in order to live here
People who move there are not in your same financial situation. Totally different.
Estos comentarios dan asco.
Reportaré tantos como pueda
I will report and block as many as I can :)
Do you not care what this is doing to the puerto rican people? The tax benefits will end up doing more harm than good, our own government is at fault for that and I won't deny it. Do you have any idea how it feels for our home, our beaches, our jungles to be for sale? FOR SALE. Public places. For the benefit of rich americans. Genuine question.
You guys are Americans tho..
@@revertedrf978 With that logic, anyone who has or obtains a U.S. citizenship is an American. Puerto Rico is an unincorporated territory of the U.S. - “Today, while Puerto Ricans are U.S. citizens and subject to federal laws, those in the unincorporated territory are unable to vote in Presidential elections, and the unincorporated territory does not have a representative vote in Congress.” Additional to this we have our own anthem, a self-governing commonwealth in association with the United States, and of course a vast and beautiful culture with our own social norms, music, food etc. But of course, ignorant people will stay ignorant despite being educated. At the end of the day, if it comforts you to call Puerto Rican’s Americans I can’t stop you 😁
@@revertedrf978 nah we are colonized.
@@flexbori but I mean you're an American territory
@@lilac4696 you're right, you guys are "American" by law, but you don't have all the rights of one. I don't think PR will ever be a state though. I plan on visiting there to see how it is, might move there.
Greedy YT ppl
The problem is new comers are damaged the island and culture smh instead of investing smh wrong
gringo go home
Si
Gringo colonizers
Ese es el plan de Ricky Rossello y Pierluisi...Puerto Rico sin puertorriqueños! Hay q estar vigilante q estamos perdiendo nuesos partimonio poco a poco.
People will be disappointed in themselves in few weeks if they miss the opportunity to buy and invest in bitcoin and other crypto currency
GRINGO GO HOME