Flashing Thursday Night - sent by MarineMom
[6:31:42 PM] flashing: Hi good evening. Just a few words and some information that may be useful for you: Please stay calm and confident since everything is great and moving in the right direction. The real economic variables are falling into place.
[6:32:27 PM] flashing: Beside that, here is some good information that you may consider in your future.
(*) ARTICLE: PUERTO RICO Tax Incentives Defined
Few places on earth offer a return on investment the way Puerto Rico does. With an ever-growing array of services and emerging industries, part of your success will be directly attributable to the incentives available. In order to bolster the manufacturing sector as well as other strategic areas, the local government has created an aggressive economic and tax incentive program with the purpose of helping operations on the island become more profitable to those companies who manufacture here.
Puerto Rico, the smallest isle of the Greater Antilles and with a population of approximately 4 million, boasts one of the most dynamic economies in the Caribbean. With a GNP of approximately $64.84 billion, the island has the highest GNP per capita of Latin America. For the past 50 years, the island has been a manufacturing powerhouse.
Many of the top prescription drugs in the U.S. as well as medical devices are manufactured in Puerto Rico. In the financial sphere, Puerto Rico is home to one of the most sophisticated financial markets in the hemisphere.
The island has a vibrant mutual funds market of $14 billion and financial firms on the island manage client assets that exceed $34 billion. Yet, as a place for doing business, Puerto Rico is still a well-kept secret.
As a Commonwealth of the U.S., Puerto Rico enjoys fiscal autonomy, which means that it can offer very attractive tax incentives not available on the mainland U.S. Yet, all federal laws apply to Puerto Rico.
We share a common currency, common military defense and citizenship with the U.S. No passports are needed to travel to and from the U.S. mainland.
This is a formidable combination in which the investor has access to alluring incentives, while the investments are safeguarded by:
The prevailing rule of law.
The lack of currency risk.
Puerto Rico’s political stability.
Low country risk.
Individual bona-fide residents of Puerto Rico are not subject to federal taxes on income derived from Puerto Rico sources.
How Puerto Rico is Enticing High-Income U.S. Residents to move to the island
For more than 60 years, Puerto Rico has been an alluring destination for American travelers; in fact, in its golden age of tourism, the island was a haven for A-list movie stars, billionaire tycoons with names like Rockefeller, and a wealthy elite.
In the last few years, there's been a strong push to return to that model. With top-class hotels like the St. Regis Bahía Beach, the Ritz-Carlton Reserve, and the rebirth of the legendary Condado Vanderbilt Hotel to complement properties like the W Retreat in Vieques and the Horned Dorset Primavera in Rincón, the island is making a strong push to become a destination for the wealthy.
And it's not just targeting wealthy tourists. A recent NPR report explains that laws enacted in 2012 are making it more than enticing than ever for U.S. millionaires to pick up and move to the island. Why? Here are three simple reasons:
When you move to the island, all of your investment income, (capital gains, dividends, etc. are completely tax-free.
Your service income (a hedge fund's management fees, for example) is taxed at only 4 percent.
There is no federal income tax for Puerto Rican residents.
Of course, merely having a mailing address in Puerto Rico isn't going to get you all these breaks. You have to live here at least 183 days a year with your family (your kids need to be enrolled at local schools, if applicable.
The idea is to bring some needed capital to the island; after all, Puerto Rico has offered similar tax breaks to U.S. corporations; why not try it at the individual level?
An influx of high-income residents who live and spend money on the island should be a good thing for the economy.
But beyond the math, does it make sense for a millionaire in the U.S. to move to Puerto Rico? I'd argue that those who have never visited the island aren't fully aware of all it can offer them.
Puerto Rico can provide a terrific lifestyle. The Caribbean and Atlantic are never more than a short drive (or walk) away
And then there's San Juan, a bustling capital city with high-end condos and lovely homes available. Many Americans also relocate to Vieques Island and Culebra Island; I've had a chance to tour some of the spectacular mansions in Culebra, and I wouldn't mind calling one of them home!
[6:33:58 PM] Marine Mom: Thanks flash
[6:34:05 PM] flashing: This law could be very attractive for you.
[6:34:29 PM] flashing: As per this law INDIVIDUAL INVESTORS:
The Individual Investors Act 22 (Act 22 of 2012) seeks to attract new residents to Puerto Rico by providing a total exemption from Puerto Rico income taxes on all passive income realized or accrued after such individuals become bona fide residents of Puerto Rico. To qualify, the new resident must not have been a resident of Puerto Rico at any time from January 16, 1997 through January 16, 2012.
The Act provides the following benefits to new Puerto Rico bona-fide residents on qualified investments:
•100% tax exemption from Puerto Rico income taxes on all dividends
•100% tax exemption from Puerto Rico income taxes on all interest
•100% tax exemption from Puerto Rico income taxes on all short-term, and long-term capital gains accrued after the individual becomes a bona- fide resident of Puerto Rico (“Puerto Rico Gain”).