According to Stefans accountant, if you own a business in Puerto Rico and employ at least 5 Puerto Ricans, you are not required to pay taxes. That’s right, no state taxes and no federal taxes!
Minimum wage in Puerto Rico is $3.61 - $5.15, which means it would cost $2,888 - $4,120 per month to employ 5 Puerto Ricans full time.
Verrrrrry interesting.
Stefan is going to get more details on this from his accountant and I have a meeting on Monday with my accountant/financial planner. We’ll post the lowdown when we get the facts on this one…
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I’ve been trying to figure this out myself (for my move to thailand). I’m not sure if you’ll be considered Expats b/c of the way the US/Peurto Rico are.. but fom what I’ve read so far you can exclude up to $80k/year from US taxes.. but im not sure if the only applies when your paying taxes to the country you live in.
“If you are a full time resident abroad for a full calendar year, or live there for 330 days out of any consecutive 12-month period, you can exclude up to $80,000 of earned income from U.S. Income Taxation for 2003, 2004, and beyond.”
- http://www.globaltaxhelp.com/taxbasics.htm
Please let us know if a) your considered expats and b) what US taxes you’re still obligated to pay as US citizens?
Thanks!
MMMMMMMMMMMM gots me thinking, which isnt always a good thang.
things to place in sunny land. i couldn’t find stefan’s email.
avocadoes. get grafted kind, from university. you’ll have avocadoes in 3 years. there are many species, ones i prefer have a rough outside texture with a strong guac flavor.
bananas. there are soooooo many varieties. best to go to flea market in san sabastian on friday afternoon.
cocoa. from university. i bought some nice sized trees for about 5 $.
papaya. get hawaiian variety. they’re smaller than local ones, but they’re real sweet. if you plant them this week, in 6 - 9 months you’ll have fruit. the local variety is good if you eat them like a food, but their sugar content is low. sometimes the university has it. but there is place in cabo rojo, jardines de nerieda, that at times has good variety. best ones have few seeds. if you plant by seed, let me know.
coffee. why not? i think you can get the plants free. we have a few coffee plants, but beach area is not good for coffee. it’s a pain to toast coffee. my mother in law has a coffee farm in jayuya, and i’ve tried toasting coffee. easier to buy it, but plants are pretty.
spices. many variety of spices just grow wild. oregano, and at this moment can’t think of any other flavors.
ginger. grow closer to humid sources. they like humidity and sun. we have about 6 varieties at villa.
passion fruit. grows like cancer, but you need fencing. flowers are nice in tea.
i’ll collect more coconuts later on this week. oh, and there’s another variety of coconut you should have, it’s a hawaiian variety. the nut is orange, but very sweet. i have one planted, and it hasn’t produced yet.
But are you required to pay health insurance and those kinds of bennies if you employ full time?