What if I move to Puerto Rico but buy stocks before becoming a bonafide resident? Say I’ve been living there for 1 month and buy a stock, then I live there for 6 more months and become a bonafide resident. Is it all about the tax year? So if I move this month everything I buy this year 2025 would be under PR tax or only after living there for 6 months? Thanks!
For the interest income or dividend income, does it matter WHERE the investment is? In other words, if I become a resident of PR, and I invest in private funds outside the USA or provide private loans to entities outside the USA, are those dividends and interest income exempted as well, or do the entities I invest in have to be located in PR for that exemption?
what if I bought tesla stocks in 2020 and 2021 while I was still living in California? Now I want to move to Puerto Rico and sell the tesla stock after living there for 183 days, and plan on living there for at least the next t3 years. I also heard that I need to buy a house or condo there, thats about $150K, that is still very cheap. After doing al that, and then sell my tesla stocks, I will NOT need to pay federal and state long term cap gain tax? Thank you!
Great question! Any capital gains from stocks purchased BEFORE moving to Puerto Rico are still subject to U.S. federal and California state taxes. Only gains accrued AFTER establishing residency in Puerto Rico can qualify for the 0% tax rate. Be careful, as California may try to continue to claim taxes if you don’t properly sever ties.
Great question! The Servicemembers Civil Relief Act (SCRA) allows active-duty military members to maintain their legal residence (state of domicile) even if they are stationed elsewhere. However, Puerto Rico is not a state, and the application of SCRA protections for tax residency in Puerto Rico is unclear. Unlike U.S. states, Puerto Rico’s tax benefits rely heavily on the physical presence test. There is no direct military exemption that allows you to keep Puerto Rico residency while being stationed elsewhere.
What if I move to Puerto Rico but buy stocks before becoming a bonafide resident? Say I’ve been living there for 1 month and buy a stock, then I live there for 6 more months and become a bonafide resident. Is it all about the tax year? So if I move this month everything I buy this year 2025 would be under PR tax or only after living there for 6 months? Thanks!
For the interest income or dividend income, does it matter WHERE the investment is? In other words, if I become a resident of PR, and I invest in private funds outside the USA or provide private loans to entities outside the USA, are those dividends and interest income exempted as well, or do the entities I invest in have to be located in PR for that exemption?
Great question! If you become a bona fide Puerto Rico resident, interest and dividends are exempt under Act 60 ONLY if they are Puerto Rico-sourced.
Did Act 60 replace Act 20 and Act 22? A lot of contradicting information out there. Thanks for the great video.
Yes, great question. Act 60 replaced both Act 20 and Act 22. Thanks for watching!
what if I bought tesla stocks in 2020 and 2021 while I was still living in California? Now I want to move to Puerto Rico and sell the tesla stock after living there for 183 days, and plan on living there for at least the next t3 years. I also heard that I need to buy a house or condo there, thats about $150K, that is still very cheap. After doing al that, and then sell my tesla stocks, I will NOT need to pay federal and state long term cap gain tax? Thank you!
I’d rather not do that if you don’t want the cartel looking out for those who want to steal what is ours. GREEN GO. We don’t want you here
Great question! Any capital gains from stocks purchased BEFORE moving to Puerto Rico are still subject to U.S. federal and California state taxes. Only gains accrued AFTER establishing residency in Puerto Rico can qualify for the 0% tax rate. Be careful, as California may try to continue to claim taxes if you don’t properly sever ties.
If I am in the military and unable to live physically in puerto rico due to my service, can I still claim residency in puerto rico?
Great question! The Servicemembers Civil Relief Act (SCRA) allows active-duty military members to maintain their legal residence (state of domicile) even if they are stationed elsewhere. However, Puerto Rico is not a state, and the application of SCRA protections for tax residency in Puerto Rico is unclear.
Unlike U.S. states, Puerto Rico’s tax benefits rely heavily on the physical presence test. There is no direct military exemption that allows you to keep Puerto Rico residency while being stationed elsewhere.
Get rid of act 60. Free P.R. viva P.R. libre.
Thanks. I am from Puerto Rico. Setting up an export service business and tying it to Real Estate (I am a RE Broker).
Donyou.have a job for me