One of those individuals is Peter Schiff, the CEO of Euro Pacific Capital, who moved his asset management firm from Newport Beach, California to San Juan. I spoke with him and asked him why he decided to relocate. Well, I did it for the obvious benefit of being able to keep most of what I own. I mean, that's not the case here in the United States. The government takes most of what I earn. But if I earn money in Puerto Rico, thanks to the fact that they finally reduced taxes there, I get to keep a lot more of what I earn. It's too bad that Puerto Rico didn't do this years ago, decades ago. They wouldn't be in the economic trouble they are today. They would be a shining bright spot in the United States. They would have the highest per capita income instead of the lowest. Well, I can see the appeal on the tax front. Another part of the appeal is that it's apparently the closest thing to renouncing US citizenship without actually doing so, because residents of Puerto Rico are considered US citizens even though they're subject to different tax laws. Was this a major factor in your decision? Sure, I mean, you know, for a lot of Americans, if you have some wealth, if you have some businesses, for the privilege of renouncing your citizenship, the US government imposes a very heavy tax. And if you don't want to pay that exit tax, if you just want to leave the country, no matter where you live, if you're earning money, the US government wants its cut. That is uniquely American. Most countries, if their citizens travel abroad, they let them go freely. You know, they're allowed to earn money, and they're not subject to...
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Us citizen working in puerto rico taxes Form: What You Should Know
As I have stated It's important to keep in mind that Puerto Rican law does not allow for a resident who is employed or self-employed in the U.S. to File for social security on behalf of his Puerto Rican spouse. So if your Puerto Rican spouse is also employed or self-employed in the U.S. Then you must file and pay the social security, Medicare, and workers' compensation insurance taxes on behalf of him. The income tax is due in Puerto Rico. There is no withholding tax in Puerto Rico. The U.S. government is not able to withhold social security and Medicare benefits on Puerto Rican workers' wages. This income tax is due in Puerto Rico. However, because Puerto Rico is a U.S. possession, U.S. withholding tax is due on Puerto Rican workers' wages (at the rate of 7%) if they are employed on the U.S. mainland or on American-owned (at the rate of 26%) ships and aircraft. Therefore, an international trade company or firm with which your employees are contracted has to withhold 26% from their employees' wages in PR. Therefore, Puerto Ricans who are employees of U.S. or foreign corporations that do business outside the United States have to pay PR income tax to the PR government in the amount of 28% of their gross wages. Filing Forms For Social Security and Medicare Income Tax I believe that you are obligated to file a U.S. income tax return if you are on the U.S. mainland income-tax free. Puerto Rico tax is also exempt from U.S. income tax, but Puerto Rico tax is due at the rate of 28% of gross wages. How does the Puerto Rican government tax me? The most common tax is a 3.8% income tax. For 2024 it is 25,000 pesos (equivalent to a 1,360 tax). How is the Puerto Rican government revenue based? The Puerto Rican government revenue is based on income and personal wealth on which tax is assessed. Most income, including property and dividend income is taxable. Property, which the government takes from one person and gives to another can be taxed. A person without property or income can be taxed, but there is no minimum amount for taxation. The income tax can also be due at an increasing rate. There are no exemptions and no personal exemptions offered if you are a Puerto Rican resident.
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