Puerto Rico (USA)
Country Profile
Country Profile
Passport Ranking
Passport Score
Visa-free Countries
Cost of Living
English Proficiency
Moderate (4/7)
Average (3/5)
Very Dangerous (6/7)
Average (3/5)
Very High (1/5)

Taxation Type: Residence-based

The Act 60 incentives (former Act 20 and Act 22) can lower your business income to just 4%, and eliminate entirely capital gains tax on stocks, crypto.

Sovereign Man's take:

The US territory of Puerto Rico should be on the radar of every American.

In Puerto Rico, you will never be cold again, and this tropical paradise has ample additional benefits to offer. 

As an American, you don’t need a passport to move to Puerto Rico. And hey, Amazon delivers there, too.

Then, there are the territory’s fantastic tax breaks. (We have written a comprehensive report on them here.) 

Our own founder, Simon Black, as well as dozens of our subscribers, have moved to the island to take advantage of these.

The drawcard here is Act 60 – consisting of what was formerly known as Act 20 (Export Services Act) and Act 22 (The Individual Investor Act), among other incentives. 

Act 20 offers incredible tax savings for eligible businesses that relocate to Puerto Rico from the mainland – it is entirely possible to lower your total tax obligation to a low single digit.

Additionally, Act 22 also allows you to live in Puerto Rico and enjoy 100% tax-free capital gains on stocks and crypto trading.

This attracted a lot of blockchain movers and shakers to the island, and Puerto Rico now boasts a very active and high-quality expat community. Socializing with like-minded, dynamic people is consequently very easy there.

And as we have written in this report, Puerto Rico could serve as a backdoor to fast-track naturalization in Spain – as a Puerto Rican citizen, you could become Spanish in two years instead of ten. (Spain specifically mentions that Puerto Ricans qualify for faster naturalization. And yes, it's possible for Americans to “naturalize” in PR after just one year of living there.)

There's no language issue, either. The main language of the island is Spanish, but just about everyone speaks English also.

In terms of downsides, Puerto Rico’s government is corrupt and dysfunctional.

Thus, don't expect government services to work as they do in the US. An ambulance may come late, and the police may not come at all.

Puerto Rico is also located squarely within the hurricane danger zone. Deadly storms lash the territory quite regularly.

And power outages are very common on the island, even outside of the hurricane season.

Service Providers available in Puerto Rico (USA) in Sovereign Man's Rolodex:

  • Immigration (residency, citizenship)
  • Full relocation services (real estate search, bank account opening, driver's licence, etc.)
  • Tax advice (attorneys and/or accountants)
  • Corporate services (company formation, etc.)
  • Real Estate (agents, lawyers)
Obtain access by signing up for Sovereign Man: Confidential

Puerto Rico (USA) inside Sovereign Man resources
(opens in a new window)

22-Aug-2208/22/22Legally Counter the Inflation Reduction Act of 2022 Sovereign ConfidentialSMCAlert
28-Jul-2207/28/22July 2022 SMC Q&A Sovereign ConfidentialSMCQ&A
31-Mar-2203/31/22March 2022 SMC Q&A (Live Call Recording) Sovereign ConfidentialSMCQ&A
28-Jan-2201/28/22January 2022 SMC Q&A Sovereign ConfidentialSMCQ&A
29-Nov-2111/29/21November 2021 SMC Q&A Sovereign ConfidentialSMCQ&A
10-Jun-2106/10/21Sovereign Man’s Ultimate Guide to Puerto Rico’s Tax Incentives: 2021 Update Sovereign ConfidentialSMCBlack Paper
29-May-2105/29/21May 2021 SMC Q&A Sovereign ConfidentialSMCQ&A
29-Apr-2104/29/21April 2021 SMC Q&A Sovereign ConfidentialSMCQ&A
31-Mar-2103/31/21March 2021 SMC Q&A Sovereign ConfidentialSMCQ&A
26-Feb-2102/26/21February 2021 SMC Q&A Sovereign ConfidentialSMCQ&A
09-Feb-2102/09/21The Sovereign Man Starter Guide Sovereign ConfidentialSMCBlack Paper
29-Jan-2101/29/21January 2021 SMC Q&A Sovereign ConfidentialSMCQ&A
30-Nov-2011/30/20November 2020 SMC Q&A Sovereign ConfidentialSMCQ&A
30-Oct-2010/30/20October 2020 SMC Q&A Sovereign ConfidentialSMCQ&A
30-Sep-2009/30/20September 2020 SMC Q&A Sovereign ConfidentialSMCQ&A
29-May-2005/29/20May 2020 SMC Q&A Sovereign ConfidentialSMCQ&A
29-Feb-2002/29/20February 2020 SMC Q&A Sovereign ConfidentialSMCQ&A
14-Feb-2002/14/20Puerto Rico: A backdoor way into a Spanish passport Sovereign ConfidentialSMCMonthly Letter
05-Aug-1908/05/19She lives on a boat and reduced her taxes by nearly half Sovereign ConfidentialSMCCase Study
03-Jul-1907/03/19Important update on Puerto Rico’s Incentives Code Sovereign ConfidentialSMCAlert
26-Jun-1906/26/19Important changes to Puerto Rico Tax Incentives Programs: Approved by the Senate Sovereign ConfidentialSMCAlert
30-Nov-1811/30/18November 2018 Q&A Sovereign ConfidentialSMCQ&A
01-Nov-1811/01/18SMC Update: Puerto Rico proposes increased taxation under Act 20 and Act 22… bill already shot down Sovereign ConfidentialSMCAlert
31-Oct-1810/31/18October 2018 SMC Q&A Sovereign ConfidentialSMCQ&A
15-Oct-1810/15/18What I've learned after a month in Puerto Rico Sovereign ConfidentialSMCMonthly Letter
05-Oct-1810/05/18Best startup programs around the world Sovereign ConfidentialSMCBlack Paper
05-Sep-1709/05/17How to slash your taxes AND live in paradise – no passport required Sovereign ConfidentialSMCAlert
16-May-1705/16/17How YOU can save on taxes, Plus: Puerto Rico update Sovereign ConfidentialSMCMonthly Letter
05-May-1705/05/17A dynamic entrepreneurial couple moves to Puerto Rico, slash their taxes to 4% Sovereign ConfidentialSMCCase Study
06-Apr-1704/06/17Sovereign Man Country Rankings: The Right Country for YOU, with Simon's insights Sovereign ConfidentialSMCBlack Paper
24-Mar-1703/24/17Proposed changes to Puerto Rico's tax incentive laws Sovereign ConfidentialSMCAlert
24-Mar-1703/24/17Puerto Rico Update Sovereign ConfidentialSMCAlert
15-Mar-1703/15/17The unsettling lesson I just learned firsthand… and how you can protect yourself Sovereign ConfidentialSMCMonthly Letter
15-Sep-1609/15/16What finally convinced me that Puerto Rico is a no-brainer for residency Sovereign ConfidentialSMCMonthly Letter
23-Dec-1512/23/15Moving to Puerto Rico is an excellent tax strategy for both companies and individuals Sovereign ConfidentialSMCAlert
19-Mar-1503/19/15Simon's big picture thoughts and boots on the ground from the past month of travel Sovereign ConfidentialSMCMonthly Letter
02-Jul-1407/02/14Puerto Rico Sovereign ConfidentialSMCBlack Paper
06-Apr-1404/06/14How Peter Schiff minimized his corporate tax liability to 4% Sovereign ConfidentialSMCAlert

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