Digital Nomads January 15, 2020

Puerto Rico for Indie Hackers - Law 20/22 benefits for US entrepreneurs

Gabriel J. Pérez Irizarry @gabrieljoel

Hi everybody!

Gabriel here, Puerto Rico IH Community Ambassador.

Puerto Rico is great place for nomads. We have fairly good infrastructure, great tropical weather year round, beautiful beaches, high speed Internet and cheap rents.

Since PR is a US colony (long story), we use the US dollar, same banking system and you can relocate here just as if you were to relocate to any state.

We will be live-streaming our next meetup, where we will talk about one more incentive to move here. Law 20/22 benefits for US citizens who relocate to PR.

If you want to watch the livestream or visit us in person, you can sign up here and we will send the livestream link via email!

Act 20 for businesses:

  • Flat 4% corporate income tax rate
  • Tax-free distributions from dividends and profits
  • 60% municipal tax exemption

Act 22 for individuals:

  • 0% income tax on all dividend income
  • 0% income tax on all interest income
  • 0% income tax on all capital gains, including both short- and long-term
  1. 1

    We (my partner and I) were thinking about moving there but somehow we got the impression that it is not that cheap there compare to other big states (we were comparing it to Minneapolis.). It was just talking, we didn't really research. It is great to see your input. We'd love to live there.

    How was your experience with living cost and rent?

    1. 2

      Hello!

      I'm native Puerto Rican. I've also lived in the states.

      Here is my tl;dr on living costs:

      1. Alcohol is cheaper ;)
      2. Groceries (some are cheaper, some are more expensive, overall no big change).
      3. Rent is significantly cheaper than the big US metro areas. You can find an apartment in a prime location like Condado, a walk-able beachfront community where many of the expats live in, for about $1,200 USD per month. On the low end in other areas, you can find stuff for $400 per month.
      4. Gas is about the same as a state like Georgia, cheaper than states like California.
      5. Eating out is about the same as in the states.
      6. Utilities are expensive when compared to the US.
      7. 1 Gibabit Internet is about $70 per month.
      1. 1

        Thanks, Gabriel for the detailed response.

        I also recall utilities being expensive.
        I should do more research.

        1. 2

          One thing I forgot to mention. The prices I spoke off, are for the San Juan Metro area. Outside the San Juan Metro area everything is cheaper.

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