Americas · USD
Puerto Rico
Reviewed 2026-06-21
Top income tax
33%
Self-employed SS
Yes
VAT
11.5%
Capital gains
15%
Exit tax
No
Nomad visa
No
54
/ 100
Tax efficiency32
Ease to enter49
Ease to exit93
Cost of living65
Internet50
English100
Puerto Rico is a US territory with its own tax code, so residents pay Puerto Rico income tax (progressive up to 33 percent) on worldwide income rather than mainland US federal income tax on locally sourced earnings. Its headline draw for solopreneurs is the Act 60 resident investor regime, which can grant a full exemption on capital gains, dividends, and interest for qualifying new bona fide residents who relocate and spend at least 183 days a year on the island. There is no local wealth, inheritance, or gift tax, but self-employed residents still owe US federal Social Security and Medicare contributions, and there is no separate immigration visa since US citizens move freely.
Personal income tax
Income tax structureProgressive
Top income tax rate33%
Entry income tax rate0%
Top rate threshold$61,500
Taxation basisWorldwide
Local/state income taxNo
Social security
Self-employed social securityYes
Employee SS rate7.65%
Employer SS rate7.65%
Indirect & other taxes
VAT standard rate11.5%
Capital gains rate15%
Long-hold CGT exemptionNo
Wealth taxNo
Inheritance/gift taxNo
Property taxNo
Exit & residency
Exit taxNo
EU/EEA deferralNo
Days to trigger residency183 days
Corporate
Corporate income tax rate37.5%
WHT on dividends15%
CFC rulesNo
Incentives & special regimes
Special expat regimeYes
Expat regime nameAct 60 Resident Individual Investor (formerly Act 22)
Immigration & setup
Digital nomad visaNo
Entrepreneur visaNo
Lifestyle
Cost of living index65
English proficiencyHigh
Civil liberties83
Sources
- PwC Worldwide Tax Summaries — Puerto Rico Individual: Taxes on personal income
- PwC Worldwide Tax Summaries — Puerto Rico Individual: Other taxes (SUT, wealth tax)
- PwC Worldwide Tax Summaries — Puerto Rico Corporate: Taxes on corporate income
- IRS — Self-employment tax for bona fide residents of US territories (Publication 570 / Form 1040-SS)
- PwC Worldwide Tax Summaries — Puerto Rico Individual: Other tax credits and incentives (Act 60)
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.