The Truth About ZERO Tax In Puerto Rico (what the media doesn't tell you)

Рет қаралды 28,125

3 жыл бұрын

Join FINOVA before it fills up: pro.finova.finance
Puerto Rico tax programs explained. Act 20, Act 22, & Act 60.
💵LIMITED: Get FREE Stocks: act.webull.com/k/X1eTd9ityFvU...
🔗Join my Patreon to help support my work: finova.finance/plans/
Join our discord for faster discussions: / discord
💎Get up to $250 in free crypto and 8% interest when you open an account a BlockFi blockfi.com/MaxMaher
✨Crypto exchange I use: www.kucoin.com/ucenter/signup...
🚚My in-depth moving company course: max-maher.teachable.com/p/mov...
💳My Favorite Credit Cards
Best Personal Card For FREE Travel: yourbestcreditcards.com/card/...
Best Business Card (1.5X points EVERYTHING): yourbestcreditcards.com/card/...
📚 Learn how I earn $50,000+ per month on KZfaq: max-maher.teachable.com/p/com...
📷ALL of my camera and recording equipment: www.amazon.com/shop/maxmaher
Puerto rico gets depicted in the news as a cheap and easy way to save all of your tax dollars with the flip of a switch
That’s not necessarily true. Let’s talk about the truth behind Puerto Rico’s tax savings program, what you actually save, and what you really need to do in order to reduce your tax bill.
When PR tax savings are mentioned it’s really referring to one of the two main tax programs offered. Act 20 and Act 22. Or Act 60 which is just is the combination of both of them.
ACT 20:
Also known as the “export services act” is the program that allows a business owner or self employed individual to live in Puerto Rico and save a ton of their business’s profits.
This is especially beneficial in businesses where there aren’t many write off opportunities. A few examples of businesses that highly benefit are consulting services, selling digital content, or really anything that doesn’t require a ton of assets.
The main benefits under Act 20 are you get a low 4% PR income tax (with no US federal tax on exported services) and a 50% reduction of municipal tax.
ACT 22:
Also known as the Individual Investors Act. This program offers 0% short and long term capital gains tax and 0% tax on dividends.
However with this benefits comes with significant cost. So let's break everything down so you can better understand the pros and cons of this program.
My Second Channel: / @maxmahervlogs6835
My Instagram: / maxwell_maher
Schedule one-on-one business consulting with me here: max-maher.teachable.com/p/hal...
I am not a financial advisor. This is not financial advice

Пікірлер: 116

@JasminHLo 3 жыл бұрын

Excellent job in illustrating the tax savings examples with the Act 20 program.

@jennymadrid8047 3 жыл бұрын

Good morning Max! Thanks for your video! Have a blessed and wonderful day! Blessings to you and your business! 😍🤗💖🤩💯

@BraveSquaw67 3 жыл бұрын

I’m glad you’re letting us know about life in PR.

@ChaceBonanno 21 күн бұрын

Act 22 (Act 60 Part 2) makes sense for retirees and/or HNIs. Once you make around $80-100k annually in dividends and capital gains, then the charitable donations and filing fees would be cheaper than the expected income tax liability.

@felixperez7068 9 ай бұрын

Very well done and explained. Thank you

@fairy7101 3 жыл бұрын

thanks for the informative video 💙

@hikingwithhollywood Жыл бұрын

Thank you for this video. My business partner and I are thinking about making this move and this is the best video I've seen of people in our situation.

@MaxMaher Жыл бұрын

Glad to help, good luck!

@oldschooloriginalsthe1true974 3 жыл бұрын

Gonna have to rewatch and take notes and research , thanks for sharing.

@nirupaumapathy1682 2 жыл бұрын

Max- funny and informative video. Any recommendations for good accountants you can consult on-shore and a good Act 60 lawyer as well.

@JDHart 3 жыл бұрын

Excellent info. Thanks Max!

@richsmithedu 3 жыл бұрын

Love this breakdown with the table 🙌

@cfrtravel7734 2 жыл бұрын

Thank You for this video!! I suspected all the hype about moving to PR to save on capital gain taxes came with "hidden caveats", and this is exactly the information that I needed to hear. Still might consider doing it under Act 20, but also weighing the CRT option (for a portion of my portfolio) you discussed in another video :-) Great content!!

@weslouis5643 2 жыл бұрын

So the part that gets taxed at 4%, I can keep or it has to stay in the business?

@PCNProperties 3 жыл бұрын

Will you change your blue XLR cable to a black one please. Thank you.

@choco.es.unlimited 6 ай бұрын

He's talking about a business. If you're a regular worker you're good.

@og951 2 жыл бұрын

15% tax still pretty good compare to 35% tax for short term gains in the main land

@fairy7101 3 жыл бұрын

Good morning 😍

@kendrickmorales7744 2 жыл бұрын

The only way the people of Puerto Rico will approve and accept rich people in the island is that they invest on the local economy and make more job opportunities for the locals improving their quality of life.

@CocoPR1 2 жыл бұрын

Whaaaaat🤥

@rippedray Жыл бұрын

I am curious. How does the taxes over there work if you are only into crypto and no business? Defi specifically?

@picudopr 2 жыл бұрын

When you are calculating expenses you have if you move to PR,, to get into these programs,,,you ADD Social Security,, like if you don't have to pay SS when you live in the USA,,,

@dr.edwardwilliam4689 3 жыл бұрын

Similar to US Virgin Islands St Thomas

@rimarlinbreton6803 8 ай бұрын

Hey max just subscribed and liked the video. You mentioned that you just cant move to puerto rico and cash out the money because you are still subject to 15 percent . Would you still need to apply for the acts you mentioned to get the 15%

@user-vg1hj3jm9g Жыл бұрын

I moved a company to PR and they made money , paid five percent of overall taxes I went thru it amigo is great

@MaxMaher Жыл бұрын

Great to know it worked out for you!

@TravelswithDJay 7 ай бұрын

The fact he said a virtual mailbox is 150 a month when I pay 150 a year he can’t be trusted

@brentbernard 3 ай бұрын

He said $50 a month for starters and really that is the one thing you are hinging you're decision on?

@paulsalele3844 2 жыл бұрын

Thanks, this is very informative!!

@lisaaddison7173 3 жыл бұрын

Good morning

@jlop2057 2 ай бұрын

What if i buy and sell o decentralized exchanges?

@MandoTrades Жыл бұрын

Definitely moving to PR im a day trader and need these cap gain tax savings 15% is alot in my book

@MaxMaher Жыл бұрын

Go for it, Armando! PR is a beautiful place

@oscar1748 Жыл бұрын

Bienvenido!🇵🇷

@saints1496 2 жыл бұрын

Would network marketers benefit?

@davidmacgown321 2 жыл бұрын

After my 183 days are up and I fly back to the states to my "vacation" home am I allowed to conduct business while I'm back? I have a remote real estate flipping business so I can operate it from anywhere but I'm concerned my income will be forced to come to a standstill when I'm not in Puerto Rico.

@mrprfct7069 Жыл бұрын

The key here is sourced income. Your real estate income made in the mainland is taxed in the mainland. You didn’t source it locally in PR.

@investornabil8825 7 ай бұрын

If I move and in the year sell a large profit long term investment, will i not have to pay long term capital gains tax?

@youknowwithMartyKauffman 2 жыл бұрын

Can you do this and other places like the US Virgin Islands?

@yankee7664 2 жыл бұрын

The us virgin islands..only pay federal taxes...they have a different tax code...and this is a local benefit from the Puerto Rico 🇵🇷 tax code ( you don't pay federal taxes in Puerto Rico )... you my have to make some homework..if you're looking for some especial tax benefits

@youknowwithMartyKauffman 2 жыл бұрын

@@yankee7664 cool thanks for the info

@practicalopinion1013 2 жыл бұрын

What if you are trading stocks, especially for short term capital gains? Puerto Rico would be a good place to trade from?

@MaxMaher 2 жыл бұрын

More information here: www.pf-cpa.com/income_tax_incentives_for_individual_investors.html

@user-vg1hj3jm9g Жыл бұрын

Also get a CPA to hook it up if not is a mess thru the goverment

@nathangates2806 2 жыл бұрын

Does the decree expire after 15 years or December 31, 2035?

@kevinhobbs3543 2 жыл бұрын

is the capital gains exclusion work only for stock capital gains? what about real estate capital gains?

@MaxMaher 2 жыл бұрын

Act 132 - Real Property Market Stimulus Act: taxsummaries.pwc.com/puerto-rico/individual/other-tax-credits-and-incentives

@robg4696 Жыл бұрын

Can you do Act 22 and move there six months prior before cashing out anything?

@MaxMaher Жыл бұрын

Great question! It's best to consult a tax expert for specific advice on this, but I believe you'd need to meet the residency requirements first 👍

@briceking669 Жыл бұрын

Moving down in June. See you around.

@MaxMaher Жыл бұрын

That's fantastic, welcome to the island! 🌴😎

@setara1111 2 жыл бұрын

Do you have an cpa you can refer that understands crypto and Act 20/22 etc. I’m getting passive income from Nodes and planning on moving to PR shortly.

@MaxMaher 2 жыл бұрын

CPA Torres is good for Act 60 stuff however I'm not sure the familiarity with crypto

@missgui4400 Жыл бұрын

I would like to retire in Puerto Rico because the people and the food are amazing.

@MaxMaher Жыл бұрын

I agree! Puerto Rico is a paradise 🌴

@debbiecarson6958 3 жыл бұрын

He trusted the Media 😂

@maxmahervlogs6835 3 жыл бұрын

Don’t worry, vlogs are still coming 😎

@fairy7101 3 жыл бұрын

😁

@hinthegroove9740 2 жыл бұрын

Such a shame, about everybody and everything on that island.

@user-fk8tr5ev8q 2 жыл бұрын

does my family actually need to move too??

@MaxMaher 2 жыл бұрын

Your direct family should in order to avoid issues later

@Mancayy 3 жыл бұрын

Are business owners the only ones that qualify for this program? Can a remote worker in a salaried position move to Puerto Rico and utilize these tax advantages?

@yankee7664 2 жыл бұрын

I believe you can..but you better make sure you do your homework.. before you made a decision...( Puerto Rico 🇵🇷 has is own taxes rules and you don't pay federal taxes ) it is a us territory ( colony )...and all Puerto Rican are us citizens ( they don't need a passport to go to the Us )

@hunterscott5456 2 жыл бұрын

Would love to know how this affected owning commercial real estate in the states, and with section 22 how it works!

@mehmetyilmazengin3890 3 жыл бұрын

Need your urgent idea about PLTR stock?

@Atlas2040 3 жыл бұрын

Let's go

@pb-jl8jl Жыл бұрын

bro- what are you talking about- i live here, im act 60- its a 10k donation and NOTHING to pay more. Nothing. zip. like you said. i sit on the beach and trade crypto and pay NOTHING

@MaxMaher Жыл бұрын

You pay nothing? 😳

@pb-jl8jl Жыл бұрын

@@MaxMaher 10k donation a year. thats it

@Chris2jz 7 ай бұрын

@@pb-jl8jlwhat else do you pay annually including the home you had to purchase

@Forbiddenknowhow 3 жыл бұрын

I heard you have to donate 5k each to two different pr non profits a year?

@MaxMaher 3 жыл бұрын

Yes for the investors program but not export services

@Forbiddenknowhow 3 жыл бұрын

@@MaxMaher oh yup. I’m a trader

@Forbiddenknowhow 3 жыл бұрын

@@MaxMaher what’s the total for traders? The 10k nonprofit and the 4% is that it? And whatever mini cost

@MrTannaman 3 жыл бұрын

Good video my man great information!

@vanessag6900 4 ай бұрын

Act 20 and 22 are not applicable to the residents of PR. These were created to attract wealthy individuals from the US to invest in broke PR. It is a discriminatory legislation by desperate legislators seeking to attract $. PR has a 11.5% sales tax and quality of life is not comparable to most of the US. IRS investigating whether millionaires in the program actually live in PR as required.

@theprofessor7147 2 жыл бұрын

Im glad that you like living in PR, i was born and raise over there i woudnt live cuz of the living is too expesive and the gross income is brealy over the minimun wage. I do apologize for the rude comments of some puertorrican, we are not like but like every place always hating. Love channel keep doing what you do 👍

@davidjaramillo8513 Жыл бұрын

6:15

@mindy2215 2 жыл бұрын

Tax free for investors while the island pays billions a year. _Puerto Rico residents pay more in federal income taxes every year than do residents of six U.S. states: "From 1998 up until 2006, when Puerto Rico was hit by its present economic recession, Puerto Rico _*_consistently_*_ paid more than $4 billion annually in federal taxes and impositions into the national fisc." This was more that the IRS collected from taxpayers in six States of the Union: Vermont, Wyoming, South Dakota, North Dakota, Montana, and Alaska, as well as the Northern Mariana Islands.[17][18]_

@uncleremus64 3 жыл бұрын

Thank you for the thorough breakdown. Do you have/you should have a separate channel about life in PR. From your roof, I know what area you live in. We have a home in the same neighborhood. Enjoy it. See you at the beach.

@PharaohKitty69 2 жыл бұрын

The biggest deal with PR is crypto… specifically Bitcoin. So for example I mine Bitcoin using ASIC miners. right now Bitcoin is with 28K… if I invest $500,000 and it goes up to 60K or even 100K. And I don’t have to pay capital gains I’ve just made buku bucks.

@brianjohnson1346 2 жыл бұрын

DO NOT DINE AND DASH ! what would yur mom say?!! Leave a tip! click👍 SHARE👌

@rebeccavelez3261 Жыл бұрын

Please don’t move to Puerto Rico we pay 11% tax in order to live here

@anafranco5733 Жыл бұрын

People who move there are not in your same financial situation. Totally different.

@cr8zystar282 3 жыл бұрын

Way too complicated!!

@orochimoru4409 3 жыл бұрын

Hey MAX love Your stuff! I wanted to let you know in case you didn't. AS Long as you have a SS number and are a citizen of the USA You have to PAY Taxes on any & all income earned Globally. It's a bunch a crap, but yet a USA Passport is the most wanted & Coveted of them all they say.. : /

@BraveSquaw67 3 жыл бұрын

A good reason to give up citizenship.

@SubtleSubstance 3 жыл бұрын

lol.

@goldenarm2007 2 жыл бұрын

The US has an agreement with Puerto Rico that bonafide residents of Puerto Rico are not taxed on Puerto Rican sourced income. So US citizens who become residents of Puerto Rico do not have to pay US taxes on qualified income. Otherwise there would be no reason to move to Puerto Rico and add additional taxes on top of what one is already paying to the US govt.

@lilac4696 2 жыл бұрын

Estos comentarios dan asco.

@MaxMaher 2 жыл бұрын

Reportaré tantos como pueda I will report and block as many as I can :)

@lilac4696 2 жыл бұрын

Do you not care what this is doing to the puerto rican people? The tax benefits will end up doing more harm than good, our own government is at fault for that and I won't deny it. Do you have any idea how it feels for our home, our beaches, our jungles to be for sale? FOR SALE. Public places. For the benefit of rich americans. Genuine question.

@revertedrf978 2 жыл бұрын

You guys are Americans tho..

@lilac4696 2 жыл бұрын

@@revertedrf978 With that logic, anyone who has or obtains a U.S. citizenship is an American. Puerto Rico is an unincorporated territory of the U.S. - “Today, while Puerto Ricans are U.S. citizens and subject to federal laws, those in the unincorporated territory are unable to vote in Presidential elections, and the unincorporated territory does not have a representative vote in Congress.” Additional to this we have our own anthem, a self-governing commonwealth in association with the United States, and of course a vast and beautiful culture with our own social norms, music, food etc. But of course, ignorant people will stay ignorant despite being educated. At the end of the day, if it comforts you to call Puerto Rican’s Americans I can’t stop you 😁

@flexbori 2 жыл бұрын

@@revertedrf978 nah we are colonized.

@revertedrf978 2 жыл бұрын

@@flexbori but I mean you're an American territory

@revertedrf978 2 жыл бұрын

@@lilac4696 you're right, you guys are "American" by law, but you don't have all the rights of one. I don't think PR will ever be a state though. I plan on visiting there to see how it is, might move there.

@atmflee282 Жыл бұрын

Greedy YT ppl

@hazelady5068 2 жыл бұрын

The problem is new comers are damaged the island and culture smh instead of investing smh wrong

@abrahamidris2188 3 жыл бұрын

People will be disappointed in themselves in few weeks if they miss the opportunity to buy and invest in bitcoin and other crypto currency

@LANADELFAG 2 жыл бұрын

gringo go home

@flexbori 2 жыл бұрын

@eduardosuarezalvarado1467 2 жыл бұрын

Gringo colonizers

@TheMichellepr 2 жыл бұрын

Ese es el plan de Ricky Rossello y Pierluisi...Puerto Rico sin puertorriqueños! Hay q estar vigilante q estamos perdiendo nuesos partimonio poco a poco.