Puerto Rico Has No Federal Income Tax; You Simply Pay Them 4%!
Want to pay no federal income tax? Move to Puerto Rico. Really. If you move to the island, you can legally pay none. There's also no capital gains tax. You just have to give 4% of your income to Puerto Rico.
The tax break was started by a Puerto Rican politician who'd watched years of high taxes fail to improve life on the island. He decided to try something different. Obviously, it's a popular idea, when people learn about it.
Tens of thousands have applied for the exemption, and applications tripled last year.
YouTube star Logan Paul moved his show from California to Puerto Rico to take advantage of the tax deal.
Investor Peter Schiff says, "I did it for the obvious benefit of being able to keep most of what I own ... It's too bad that Puerto Rico didn't do this decades ago. They wouldn't be in the economic trouble they are today."
"A lot of people are moving down here," says social worker Melissa DaSilva in my newest video. Two years ago, she ran a therapy business in Rhode Island. Now she runs it remotely from Puerto Rico. "I'm saving 25% of my income."
She loves her new life.
"I wake up, and I have the ocean in front of me. I go out my back door, the rainforest is off in the distance. It's just a magical place to live."
Given that this tax break is so big, it's surprising that most Americans haven't heard about it.
"People just don't really talk about it much," says DaSilva. "There's this fear that people from the state side are going to come down and take over everything."