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Planning14 min2025-01-20

Should You Move to Puerto Rico? Complete 2025 Guide

Complete analysis on moving to Puerto Rico in 2025. Act 60 benefits, cost of living, quality of life, and everything you need to know before making the decision.

By Alfonso Rodriguez, CPA - Virtus Advisory

Should You Move to Puerto Rico? The Definitive 2025 Guide

CRITICAL 2025 UPDATE: Act 60 has been extended through 2055, guaranteeing stability for an additional 30 years. However, new applicants starting January 2026 will pay 4% on passive income (versus current 0%) and must certify they have not been Puerto Rico residents for the previous 6 years. Current beneficiaries maintain their grandfathered benefits.

The million-dollar question thousands of Americans ask every year: Should you really move to Puerto Rico? With Act 60 incentives, the rise of remote work, and a growing expat community, Puerto Rico has become more attractive than ever, though with important new considerations.

In this comprehensive guide, we'll analyze all aspects you must consider before making one of the most important decisions of your life.

Who Should Move (And Who Shouldn't)

You Should Move If You're...

High-Volume Active Investor or Trader:
You generate over $500,000 annually in capital gains, maintain a significant diversified portfolio, and plan major transactions in the coming years. Your potential savings range from $100,000 to over $1 million annually in taxes, depending on transaction volume.

Entrepreneur with Exportable and Scalable Business:
Your company can operate remotely without geographic limitations, you sell services primarily to clients outside Puerto Rico, and generate corporate income exceeding $1 million annually. The potential savings represent a dramatic reduction from the 21-29% you'd pay in continental US to 4% under Act 60.

High-Income Professional with Operational Flexibility:
Doctors, lawyers, consultants, and executives with incomes exceeding $300,000 annually who have flexibility to work from Puerto Rico without compromising service quality. The main benefit lies in the strategic combination of personal and corporate incentives that maximize tax optimization.

You Should NOT Move If...

Your Income Is Primarily W-2 Salary:
Most of your income comes from traditional W-2 salary, you don't generate significant capital gains, and you work for a company requiring constant physical presence in continental United States. The economic reality is that tax benefits will be minimal and won't justify relocation costs and efforts.

Family with School-Age Children and High Educational Expectations:
Families with valid concerns about the local educational system face limited options for international-quality private schools, while premium private education costs can be significantly high, eliminating much of the tax savings obtained.

Detailed Financial Analysis

Real Tax Savings

Scenario 1: High-Net-Worth Individual Investor:
Investor with $1,000,000 annual capital gains income. In New York would pay $238,000 in taxes (23.8% combined), while in Puerto Rico under Act 22 would pay $0 (0% on capital gains). Net annual savings reach $238,000, representing an immediate 23.8% return on capital income.

Scenario 2: SaaS Entrepreneur with Scalable Operations:
SaaS company founder with $2,000,000 annual corporate income. In California would face $580,000 tax burden (29% combined federal and state), compared to $80,000 under Act 60 in Puerto Rico (4% corporate). Annual savings of $500,000 enable accelerated reinvestment in growth and development.

Scenario 3: High-End Consultant with International Practice:
Independent professional with $800,000 annual service income. In continental jurisdictions would pay approximately $280,000 (35% combined), versus $32,000 under Act 60's service export structure (4% corporate). Annual savings of $248,000 represent a 31% increase in available net income.

Relocation and Setup Costs

Comprehensive Initial Expenses (Year 1):
International moving and logistics require $15,000-30,000 investment, including belongings transport and coordination. Initial deposits and setup demand $10,000-25,000 for residential establishment and basic services. Legal fees and decree procurement represent $25,000-50,000, depending on case complexity. Temporary housing during transition requires $15,000-40,000 for adequate accommodation. Initial total ranges $65,000-145,000, representing fundamental strategic investment.

Recurring Additional Annual Costs:
Regular US travel to maintain business connections requires $8,000-15,000 annually. Specialized additional insurance for Puerto Rico residents demands $3,000-8,000. Continuous professional services for compliance and optimization represent $15,000-30,000 annually. Additional annual total ranges $26,000-53,000, costs that must be factored against tax savings obtained.

Calculated ROI

Typical break-even: 6-18 months for people with significant tax savings.

Quality of Life: The Complete Reality

Real and Tangible Advantages

Exceptional Climate and Geography:
Puerto Rico maintains an average of 80°F year-round, providing ideal climatic consistency for people seeking to escape severe winters. Spectacular beaches are within 30 minutes maximum from any point on the island, offering immediate access to Atlantic and Caribbean coasts. Geographic diversity includes mountains, tropical forests, and unique ecosystems enabling outdoor activities 365 days per year without seasonal restrictions.

Vibrant Community and Culture:
The growing professional expat community facilitates integration and networking among people with similar backgrounds. Local culture is characterized as welcoming and genuinely bilingual, eliminating language barriers for Americans. Networking events occur constantly, creating regular professional and social opportunities. Rich cultural heritage and history provide depth and authenticity that enrich daily life experience.

Real Challenges and Important Considerations

Infrastructure with Acknowledged Limitations:
Electricity presents lower reliability compared to continental United States, with occasional interruptions requiring preparation and backup systems. Internet may show inconsistencies in rural areas, though metropolitan zones maintain robust connectivity. Roads are in inferior condition to continental standards, requiring greater driving care and vehicle maintenance. Public services operate with lower efficiency, demanding patience and additional planning.

Logistics with Additional Complexities:
Shipping costs more and takes longer compared to the continent, requiring advance planning for important purchases. Variety of locally available products is smaller, creating dependence on platforms like Amazon and specialized shipping. Certain cost of living aspects are higher due to insular nature and import costs, particularly in specialized products and premium foods.

Where to Live: Guide by Zone

Metropolitan San Juan

Condado/Miramar

  • Most similar to Manhattan

  • Restaurants, nightlife, culture

  • Modern condos $300K-1M+ USD

  • Traffic and urban density
  • Dorado

  • Established expat community

  • Resorts and golf courses

  • Homes $500K-2M+ USD

  • More exclusive and resort-like
  • Guaynabo

  • Safe and family-friendly suburbs

  • Good private schools

  • Homes $400K-1.5M USD

  • Suburban lifestyle
  • Emerging Zones

    Rincón

  • Surfer and bohemian paradise

  • Artistic and relaxed community

  • Homes $200K-800K USD

  • More rural and tranquil
  • The Success Profile: Real Cases

    Story 1: Tech Entrepreneur


    Before: SaaS founder in San Francisco
  • Income: $3M annually

  • Taxes: $1.2M (40%)

  • Lifestyle: 80 hours/week, high stress
  • After: Move to Dorado

  • Same income: $3M annually

  • Taxes: $120K (4%)

  • Lifestyle: Balance, golf, family

  • Savings: $1M+ annual
  • Story 2: Hedge Fund Manager


    Before: Manager in Connecticut
  • Capital gains: $2M annually

  • Taxes: $476K (23.8%)

  • Life: Cold climate, high pressure
  • After: Residence in San Juan

  • Same gains: $2M annually

  • Taxes: $0 USD (0%)

  • Life: Beach, networking, better climate

  • Savings: $476K annual
  • The Final Decision

    You Should Move If...


    ✅ Annual tax savings > $100K
    ✅ You're adaptable and adventurous
    ✅ Your business/career is location-independent
    ✅ You're willing to invest in your initial setup
    ✅ You see Puerto Rico as long-term home

    You Should NOT Move If...


    ❌ Tax savings < $50K annually
    ❌ You need to be physically in US
    ❌ You can't tolerate infrastructure inconveniences
    ❌ Family completely opposed
    ❌ You see it as temporary tax trick

    How We Help at Virtus Advisory

    FREE Personalized Evaluation

    Includes:

  • Specific tax savings analysis

  • Eligibility evaluation

  • Option comparison (individual vs. corporate)

  • Realistic timeline for your situation

  • Total cost estimate
  • Available Packages

    Initial Evaluation - FREE

  • Eligibility consultation

  • Basic savings analysis

  • General guidance
  • Basic Package - $15,000 USD

  • Decree application

  • Basic tax planning

  • Legal documentation
  • Premium Package - $35,000 USD

  • All of the above +

  • Moving assistance

  • Complete PR setup

  • 1 year compliance
  • VIP Package - $75,000 USD

  • Complete concierge service

  • Family office setup

  • Exclusive networking

  • 24/7 support first year
  • Your Next Step

    Are you ready to explore if Puerto Rico is your destination?

    Schedule your FREE consultation where:
    ✅ We'll analyze your specific situation
    ✅ Calculate your real tax savings
    ✅ Discuss pros/cons for your case
    ✅ Give you our honest verdict

    Remember: Not everyone should move to Puerto Rico. But if you're the right profile, it can completely change your life.

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    *Moving to Puerto Rico is an important life decision. Our expert team helps you make the right decision based on data, not emotions.*

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