Welcome to another edition of the Sovereign Man podcast.
As we enter 2019, you’ll start to see more podcasts from us. And you also might notice a few changes. We’ve upped the production value of our chats with Simon. And we’ll continue to improve both the production and the content of our podcasts.
And we’d love to hear your feedback on our efforts.
In today’s podcast, Simon gives us an update from on the ground in Puerto Rico… and explains why you should absolutely consider moving to Puerto Rico if you have a business, earn investment income or want to freelance and significantly lower your tax bill.
Plus, Simon shares some specifics on how to get started taking advantage of Puerto Rico’s tax incentives (and who can benefit from Act 20 and Act 22).
It’s an outrageous deal to be able to live in paradise and pay essentially zero tax. So if you have any interest in Puerto Rico… and you could potentially benefit from moving yourself or your business there, please do not miss this discussion.
Here’s what you’ll hear about in today’s episode:
Intro – Simon talks about how amazing life is in Puerto Rico, something which surprised him. (He’s not a beach guy.)
About 3:00 in — Why moving to Puerto Rico is like moving to Florida… with major financial benefits
5:45 — What Simon gave up to move to Puerto Rico, and why it reminds him of South Park
8 minutes — Why Simon sees voting with your wallet as much more powerful than voting at the booth
10:00 — The big difference between living in a high-tax state like California and living in PR, and how the tax incentives work
18:15 — details about Act 22, including whether it works for crypto people, investments in US companies, etc.
27:27 — details about Act 20, what constitutes a “qualifying” business
31 — Can an employee on salary do this?
32:54 — Are you still paying self-employment, FICA, etc.? How do the taxes work?
36 — How does the IRS consider you a resident of PR? What do you need to do?
36:30 — Do you create an LLC or a corporation?
38:30 — How is the rise of socialism going to affect programs like these? Will these incentives last?
47:50 — Do you need to be wealthy to reap these advantages? What is the income threshold or net worth threshold to make moving to PR a good idea? (Plus, Simon’s decision not to use “rule of thumb” ever again.)
50 — The power of compound-compound (double compound) interest, and whether Einstein said that thing about it.
54: Why Simon is no longer skeptical about the PR tax incentives
57: Why the requirements for Act 20 are better than they’ve ever been (and why you should lock them in… now)
1:09: How expensive is it to live in PR? Are there “middle class” options? Plus, what life is like there
1:11: Drawbacks to living in PR
1:12 Opportunities in PR
1:20: Summing it all up — and Simon’s advice on first steps
We hope you enjoy today’s podcast and learn a lot about expanding your freedom and opportunities.