Caribbean Paradise - US Territory with Unique Tax Benefits
| State Income Tax | Individual rates 7%-33% (higher earners) |
|---|---|
| Sales Tax | 10.5% state + municipal (11.5% total average) |
| Driver's License Grace Period | No grace period - immediate requirement |
| Residency Requirement for Tax | 183+ days for bona fide residence |
| Vehicle Registration Deadline | 10 days after establishing residency |
| REAL ID Deadline | May 7, 2025 for domestic flights |
| Enhanced Driver's License | Not available |
Puerto Rico residency for tax purposes requires:
Puerto Rico offers unique tax advantages including no federal income tax on Puerto Rico-sourced income for bona fide residents, and special tax incentive programs for investors, businesses, and individuals under various acts.
Puerto Rico offers unique tax advantages including no federal income tax on Puerto Rico-sourced income for bona fide residents, and special tax incentive programs for investors, businesses, and individuals under various acts.
Puerto Rico tax law is complex and different from both U.S. mainland and foreign tax systems. Professional tax advice is essential, especially regarding the interaction between Puerto Rico, U.S. federal, and Canadian tax obligations.
Important: Under the Substantial Presence Test, you may be considered a U.S. resident for tax purposes.
New Requirement: Canadians staying 30+ days must register with USCIS by April 11, 2025.
Recommendation: Consult a cross-border tax professional familiar with Puerto Rico tax law.
Important: Under the Substantial Presence Test, you may be considered a U.S. resident for tax purposes.
New Requirement: Canadians staying 30+ days must register with USCIS by April 11, 2025.
Recommendation: Consult a cross-border tax professional familiar with Puerto Rico tax law.
Puerto Rico offers a unique blend of American conveniences with Caribbean culture and lifestyle. Year-round tropical weather, beautiful beaches, and a rich cultural heritage make it an attractive destination for those seeking a different pace of life.
Puerto Rico offers a unique blend of American conveniences with Caribbean culture and lifestyle. Year-round tropical weather, beautiful beaches, and a rich cultural heritage make it an attractive destination for those seeking a different pace of life.
Hurricane risk, higher cost of living due to importation of goods, potential language barriers (Spanish is predominant), and infrastructure challenges including occasional power outages. Limited healthcare in rural areas.
Website: dtop.gov.pr
Driver licensing, vehicle registration, and identification services.
Website: hacienda.pr.gov
Tax information, forms, and residency guidance.
Website: uscis.gov/alienregistration
Required registration for Canadians staying 30+ days.
Serves Puerto Rico residents - provides consular services and emergency assistance.
Questions about maintaining Canadian benefits while abroad.
Resources and advocacy for seasonal Canadian residents, including new US registration requirements.
Website: i94.cbp.dhs.gov
Access and print your I-94 arrival/departure records.
Website: ceepur.org
Voter registration and election information.
Hurricane tracking and weather information critical for island residents.
Property purchase guidance and regulations for non-residents.
Official tourism website with information about attractions, events, and activities.
Insurance regulations and consumer protection information.
Public health information and healthcare resources.
Economic development and planning information for the territory.
Information about tourism, attractions, and cultural events.
Important Disclaimer: This guide provides general information only. Tax and legal requirements can be complex and change frequently. Always consult with qualified professionals for advice specific to your situation.