Why Relocating To Puerto Rico Is A Great Move

Taxation is an important need for any country. Revenues fuel the government and allow them to function and provide services and projects to the people. Taxation is quite different from place to place. Some would have higher rates of taxation more than the others. The United States has one of the highest taxation rates in the world. The US also charges based on citizenship. Even if one is living abroad, the same rates would be taxed from you. This can be quite burdensome financially. That is why many are trying to find ways on how to reduce taxes without renouncing american citizenship. One of the ways to do this is by relocating to Puerto Rico. Learn then more about this and its benefits.

Renunciation can be a very risky move. You may enjoy lower tax obligations because of this, but it would have a lot of consequences. The US is very strict on renunciation, especially when the purpose behind is to avoid taxation. This is not supported by the government and some laws are actually amended to prevent this practice.

The Reed Amendment for example, stipulates that renounced Americans should be named and shamed. The Department of Treasury publishes a list of renounced citizens quarterly. Moreover, those who have renounced will no longer be allowed entry to the country and its territories. Moreover, before renunciation, a certain amount of expatriation tax would be actually charged from you. This amount covers the amount you can be taxed with if you have stayed as a citizen.

With these legal ramifications, many people are growing weary with renunciation. A good alternative to this would be relocation. You can relocate to places that offer more benefits and relief for taxation compared to others.

Puerto Rico is a good choice for this. The country is already a territory of the US, so you can remain a US citizen while living there. You can still enjoy the benefits of US jurisdiction, while getting lesser taxation obligations.

The taxation system in the country is more friendly, especially for investors or companies. You can become a resident investor in the country. This is great as the dividends, interests, and capital gains would not be taxed at all.

You can also enjoy the plush living and business environment of the country. A lot of great schools and companies are present there. The country is also a beautiful one with many great things to offer. You can then reduce taxes without renouncing american citizenship.

It is really great to relocate to Puerto Rico. You should take advantage of this current opportunity. This tax shelter is great for those investors who are taxed heavily in current US laws.