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Is Puerto Rico A Tax Haven?

Explore Puerto Rico's tax breaks for investors and its potential classification as a tax haven. As more wealthy individuals consider the island for lower taxes, the question remains: Is it the right choice for you?


Puerto Rico, a US territory in the Caribbean, gained status in the late 19th century. Facing economic challenges, it turned to foreign investment, offering enticing tax benefits.

Puerto Rico – Economic Background

Puerto Rico taxes island income, featuring a local federal tax. Mainland-generated income requires federal tax payments. The island's independent tax laws enable offering benefits to attract investors for economic growth.

Taxes In Puerto Rico

US citizens get up to 90% tax reduction in Puerto Rico, including zero capital gains and a 4% corporate tax rate. Non-US citizens must establish residency to qualify, unlike US citizens who can reside there freely.

Puerto Rican Tax Incentives

Puerto Rico isn't a tax haven but provides tax benefits for US citizens. However, other Caribbean islands with zero income taxes and fewer restrictions might be more appealing.

Is Puerto Rico Technically A Tax Haven?

Choosing a tax haven without careful consideration can backfire. Whether in Puerto Rico or Vanuatu, understanding factors like travel freedom and renunciation is crucial. As Nomad Capitalist clients, we simplify this process for you.

The Truth About Tax Havens

High-net-worth individuals can reduce taxes with Puerto Rico for US citizens, but commitment is required. Explore other options for zero taxes. Consult our team for a customized plan.

Wondering Whether to Move to Puerto Rico?

At Nomad Capitalist our job is to save you time and money by making sure you make the right choice first time round. If you’re a US citizen looking for up-front, straight-shooting advice on legal tax reduction strategies, talk to our team of experts today.


Our experienced team can help you legally reduce your tax rate offshore, protect your assets, invest overseas, obtain a second citizenship, and improve your peace of mind. We’ve helped 1,500+ HNWI entrepreneurs and investors and we can help you, too.

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