4 ms·

Ask HN: Has anyone moved to Puerto Rico, was it worth it?

54 points by digitcatphd 4y ago

I'm interested if anyone has moved to PR from the United States for financial reasons and if so, what their experience was/is.

bombcar 4y ago
What are the financial benefits? Lack of state tax? There are states with no state tax (check if they have correspondingly high property tax, they usually do): https://www.aarp.org/money/taxes/info-2020/states-without-an-income-tax.html https://www.aarp.org/money/taxes/info-2020/states-without-an... Everyone I know from PR moved to the states when possible, but then again, I wouldn't know people who moved the other way.
- water554 4y ago
  Lack of federal income tax I believe
  - the_only_law 4y ago
    Holy shit really? Catch me in PR next year then. More seriously, is this something that's true of territories in general. I was reading the other day and was kinda disappointed I can't even visit most territories.
    - iancmceachern 4y ago
      Which ones can't be visited? I know we can go to Guam, PR, what territories can't we visit?
      - the_only_law 4y ago
        Most of the ones that are "uninhabited" here: https://en.m.wikipedia.org/wiki/Territories_of_the_United_States https://en.m.wikipedia.org/wiki/Territories_of_the_United_St... Some of them have very good reasons, for example at least one was a nuclear test site. One of them is visitable, but you basically have to sail a private boat (I wonder if a rental is fine) from Hawaii to reach it and iirc need to get permission ahead.
- xhkkffbf 4y ago
  It's not just state tax. It's also capital gains tax. In the right circumstances, there's no capital gains tax on appreciated assets. This is why some cryptocurrency investors are moving there.
  - woleium 4y ago
    not this year ;)
Kaibeezy 4y ago
Surprised there have been so few comments. I’m not there but have contacts and customers, and go occasionally. I’ve followed some of the press about attempts to bring in tech sector resources through tax breaks. One of the big issues is localized pressure on housing costs in prime areas, such as Rincon. Bottom line seems to be that the scene is focused on the elite rather than creating an organic environment. I’d be pleased to read articles contradicting this view, if any. Contrast also with some increasingly successful efforts to diversify and localize the restaurant and food supply sectors. ‘Crypto colonizers’ in Puerto Rico try to sell locals on the dream - https://www.washingtonpost.com/technology/2022/01/13/crypto-puerto-rico/ https://www.washingtonpost.com/technology/2022/01/13/crypto-... The Rush for a Slice of Paradise in Puerto Rico - https://www.nytimes.com/2022/01/31/us/puerto-rico-gentrification.html https://www.nytimes.com/2022/01/31/us/puerto-rico-gentrifica... How Crypto Wealth Is Gentrifying Puerto Rico - https://www.nytimes.com/interactive/2022/02/10/business/puerto-rico-gentrification.html https://www.nytimes.com/interactive/2022/02/10/business/puer... Reclaiming Puerto Rico’s Food Paradise - https://www.nytimes.com/2015/02/18/dining/reclaiming-puerto-ricos-food-paradise.html https://www.nytimes.com/2015/02/18/dining/reclaiming-puerto-... Is America's best restaurant in Puerto Rico? - https://www.bbc.com/travel/article/20220215-is-americas-best-restaurant-in-puerto-rico https://www.bbc.com/travel/article/20220215-is-americas-best...
soared 4y ago
Puerto Rico has massive problems, I’d highly recommend vacationing there before considering moving. It’s a nice vacation spot! But go outside of the tourist zone and the political corruption is dauntingly clear. Infrastructure just never gets repaired after hurricanes because politicians leaders/etc steal the funds. Half a mile from the hotel zone are beautiful homes that were destroyed a decade ago, and never were rebuilt. People still live in them. Puerto Rico is a truly beautiful place. But it’s definitely not just another US state but in the Caribbean.
pvg 4y ago
Previous discussion: https://www.youtube.com/watch?v=fpjPh1mtp-0 https://www.youtube.com/watch?v=fpjPh1mtp-0
schultzie 4y ago
What financial reasons do you mean, exactly? Tax Act 60? https://www.the2022actsociety.org/act-60/ https://www.the2022actsociety.org/act-60/ There are many considerations you need to make if Act 60 is what you're referencing. To name a few considerations: 1. Cost of living in Puerto Rico is quite high. Expect to pay roughly double for the same foods you would anywhere else in the US, in terms of eating out OR the grocery store. 2. Applying for Tax Act 60 is a fairly lengthy process - depending on what service you go with, it can cost upwards of $20,000. This is just for the application, not for the other requirements it has such as becoming a "bona fide" resident. 3. This one is fairly minor, but worth noting. Puerto Rico moves at a difference pace than the rest of the US. Many online services we take for granted just don't really exist here. Schedule a doctor apt online? Buy car/medical insurance? Bank services? All of those either happen on the phone or in person. If you don't know spanish, this can be difficult to navigate. I don't say this to dissuade you, just to recognize there are unexpected considerations to make that might not be immediately obvious/expected.
- paulryanrogers 4y ago
  Would add to this that some of those appointments involve waking up early and waiting for multiple hours. Some family who live part of the year on the island will schedule all medical visits in the USA to avoid the waiting.
- the_only_law 4y ago
  A friend of mine described trying o get info from his community college in PR and it sounded... frustrating.
- TMWNN 4y ago
  >1. Cost of living in Puerto Rico is quite high. Expect to pay roughly double for the same foods you would anywhere else in the US, in terms of eating out OR the grocery store. This includes online shopping. UPS and FedEx's rates for delivery to PR are much higher than on the mainland, so almost all sellers that use those carriers won't ship to the island even if the item is small enough for USPS (which does not charge more). Same with Amazon, although there is a chance a third-party Amazon seller will.
electroly 4y ago
Depending on what financial reasons you mean, consider the US Virgin Islands as an alternative. It's right next door to PR but is English-speaking.

54 points by digitcatphd 4y ago

I'm interested if anyone has moved to PR from the United States for financial reasons and if so, what their experience was/is.

bombcar 4y ago

What are the financial benefits? Lack of state tax? There are states with no state tax (check if they have correspondingly high property tax, they usually do): https://www.aarp.org/money/taxes/info-2020/states-without-an-income-tax.html https://www.aarp.org/money/taxes/info-2020/states-without-an... Everyone I know from PR moved to the states when possible, but then again, I wouldn't know people who moved the other way.

water554 4y ago
Lack of federal income tax I believe
- the_only_law 4y ago
  Holy shit really? Catch me in PR next year then. More seriously, is this something that's true of territories in general. I was reading the other day and was kinda disappointed I can't even visit most territories.
  - iancmceachern 4y ago
    Which ones can't be visited? I know we can go to Guam, PR, what territories can't we visit?
    - the_only_law 4y ago
      Most of the ones that are "uninhabited" here: https://en.m.wikipedia.org/wiki/Territories_of_the_United_States https://en.m.wikipedia.org/wiki/Territories_of_the_United_St... Some of them have very good reasons, for example at least one was a nuclear test site. One of them is visitable, but you basically have to sail a private boat (I wonder if a rental is fine) from Hawaii to reach it and iirc need to get permission ahead.
xhkkffbf 4y ago
It's not just state tax. It's also capital gains tax. In the right circumstances, there's no capital gains tax on appreciated assets. This is why some cryptocurrency investors are moving there.
- woleium 4y ago
  not this year ;)

Kaibeezy 4y ago

Surprised there have been so few comments. I’m not there but have contacts and customers, and go occasionally. I’ve followed some of the press about attempts to bring in tech sector resources through tax breaks. One of the big issues is localized pressure on housing costs in prime areas, such as Rincon. Bottom line seems to be that the scene is focused on the elite rather than creating an organic environment. I’d be pleased to read articles contradicting this view, if any. Contrast also with some increasingly successful efforts to diversify and localize the restaurant and food supply sectors. ‘Crypto colonizers’ in Puerto Rico try to sell locals on the dream - https://www.washingtonpost.com/technology/2022/01/13/crypto-puerto-rico/ https://www.washingtonpost.com/technology/2022/01/13/crypto-... The Rush for a Slice of Paradise in Puerto Rico - https://www.nytimes.com/2022/01/31/us/puerto-rico-gentrification.html https://www.nytimes.com/2022/01/31/us/puerto-rico-gentrifica... How Crypto Wealth Is Gentrifying Puerto Rico - https://www.nytimes.com/interactive/2022/02/10/business/puerto-rico-gentrification.html https://www.nytimes.com/interactive/2022/02/10/business/puer... Reclaiming Puerto Rico’s Food Paradise - https://www.nytimes.com/2015/02/18/dining/reclaiming-puerto-ricos-food-paradise.html https://www.nytimes.com/2015/02/18/dining/reclaiming-puerto-... Is America's best restaurant in Puerto Rico? - https://www.bbc.com/travel/article/20220215-is-americas-best-restaurant-in-puerto-rico https://www.bbc.com/travel/article/20220215-is-americas-best...

soared 4y ago

Puerto Rico has massive problems, I’d highly recommend vacationing there before considering moving. It’s a nice vacation spot! But go outside of the tourist zone and the political corruption is dauntingly clear. Infrastructure just never gets repaired after hurricanes because politicians leaders/etc steal the funds. Half a mile from the hotel zone are beautiful homes that were destroyed a decade ago, and never were rebuilt. People still live in them. Puerto Rico is a truly beautiful place. But it’s definitely not just another US state but in the Caribbean.

pvg 4y ago

Previous discussion: https://www.youtube.com/watch?v=fpjPh1mtp-0 https://www.youtube.com/watch?v=fpjPh1mtp-0

schultzie 4y ago

What financial reasons do you mean, exactly? Tax Act 60? https://www.the2022actsociety.org/act-60/ https://www.the2022actsociety.org/act-60/ There are many considerations you need to make if Act 60 is what you're referencing. To name a few considerations: 1. Cost of living in Puerto Rico is quite high. Expect to pay roughly double for the same foods you would anywhere else in the US, in terms of eating out OR the grocery store. 2. Applying for Tax Act 60 is a fairly lengthy process - depending on what service you go with, it can cost upwards of $20,000. This is just for the application, not for the other requirements it has such as becoming a "bona fide" resident. 3. This one is fairly minor, but worth noting. Puerto Rico moves at a difference pace than the rest of the US. Many online services we take for granted just don't really exist here. Schedule a doctor apt online? Buy car/medical insurance? Bank services? All of those either happen on the phone or in person. If you don't know spanish, this can be difficult to navigate. I don't say this to dissuade you, just to recognize there are unexpected considerations to make that might not be immediately obvious/expected.

paulryanrogers 4y ago
Would add to this that some of those appointments involve waking up early and waiting for multiple hours. Some family who live part of the year on the island will schedule all medical visits in the USA to avoid the waiting.
the_only_law 4y ago
A friend of mine described trying o get info from his community college in PR and it sounded... frustrating.
TMWNN 4y ago
>1. Cost of living in Puerto Rico is quite high. Expect to pay roughly double for the same foods you would anywhere else in the US, in terms of eating out OR the grocery store. This includes online shopping. UPS and FedEx's rates for delivery to PR are much higher than on the mainland, so almost all sellers that use those carriers won't ship to the island even if the item is small enough for USPS (which does not charge more). Same with Amazon, although there is a chance a third-party Amazon seller will.

electroly 4y ago

Depending on what financial reasons you mean, consider the US Virgin Islands as an alternative. It's right next door to PR but is English-speaking.