Moving to Puerto Rico Guide

Recently, we have seen an increasing number of Americans relocating to Puerto Rico, so in this week’s blog, we wanted to discover why so many people are moving here.

Situated in the heart of the Caribbean, Puerto Rico is a U.S. territory, so you get a blend of American familiarity with a tropical allure.

With a vibrant culture, scenic landscapes, financial incentives, and a favorable climate, the island is an attractive destination for those considering a move.

So, let’s look a bit deeper into just why so many Americans are making the move to Puerto Rico.

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1. Favorable Tax Benefits

One of the most significant advantages of moving to Puerto Rico is the island’s unique tax incentives.

As a U.S. territory, Puerto Rico offers tax laws that differ significantly from those on the mainland.

Many people, particularly business owners, entrepreneurs, and investors, are drawn to Puerto Rico due to the island’s tax-friendly policies.

Act 60 (formerly known as Acts 20 and 22): Under this legislation, individuals who establish residency in Puerto Rico can benefit from significant tax reductions.

For example, eligible residents can enjoy a 4% corporate tax rate on export services and a 0% capital gains tax.

This makes Puerto Rico a prime destination for high-net-worth individuals, crypto traders, and those who derive income from passive investments.

No Federal Income Tax: Puerto Rican residents are exempt from paying U.S. federal income taxes on their Puerto Rico-sourced income. This means that while you remain a U.S. citizen, you’ll only need to pay local taxes, which tend to be lower than those on the mainland.

For those seeking to reduce their tax burden, Puerto Rico’s tax incentives are a compelling financial advantage, especially when compared to high-tax states in the U.S. such as New York or California.

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2. U.S. Territory with Familiar Amenities

Moving to Puerto Rico provides the best of both worlds: a tropical paradise that still offers many of the conveniences and services you’re accustomed to in the United States.

Since Puerto Rico is a U.S. territory, you don’t need a passport to move or travel back and forth between the mainland.

The island uses the U.S. dollar, English is widely spoken (alongside Spanish), and there are many familiar chains like Walmart, Costco, and Walgreens.

Healthcare: Puerto Rico offers a wide range of medical facilities, many of which provide care comparable to U.S. standards. With access to Medicare and Medicaid for eligible residents, retirees can feel secure in knowing they have access to quality healthcare while living in a more affordable and relaxed environment.

Infrastructure and Connectivity: Although Puerto Rico has faced infrastructure challenges, particularly following Hurricane Maria in 2017, substantial recovery efforts have been made. The island has reliable internet, mobile phone coverage, and modern transportation systems, making it a practical place for digital nomads and remote workers.

Living in Puerto Rico allows you to experience a tropical lifestyle while maintaining a connection to familiar U.S. institutions and conveniences.

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3. Lower Cost of Living

Another reason many Americans are attracted to Puerto Rico is the lower cost of living, particularly when compared to major cities on the mainland.

Housing, utilities, groceries, and transportation are all generally more affordable on the island. For instance, rent and property prices tend to be significantly lower than in cities like New York, Los Angeles, or San Francisco.

Housing Costs: The housing market in Puerto Rico is diverse, with options ranging from modern condos in San Juan to beachfront villas in quieter towns. Prices vary depending on location, but in general, you can get much more for your money compared to similarly desirable places in the U.S.

Day-to-Day Expenses: Groceries, dining out, and transportation costs are also more affordable in Puerto Rico. Local produce and seafood are not only delicious but also less expensive than what you’d find on the mainland, and public transportation is cheap and accessible in many parts of the island.

While luxury goods and imported items may be more expensive due to shipping costs, the overall cost of living in Puerto Rico remains lower than that of most U.S. metropolitan areas.

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4. Tropical Climate and Natural Beauty

One of the most obvious benefits of relocating to Puerto Rico is its stunning natural beauty.

The island boasts a year-round tropical climate, with average temperatures between 70°F and 85°F, making it an ideal location for those who enjoy warm weather.

Whether you’re lounging on pristine beaches, hiking through lush rainforests, or enjoying water sports, Puerto Rico offers a paradise-like setting for outdoor enthusiasts.

Beaches: Puerto Rico is home to some of the most beautiful beaches in the world, with crystal-clear waters and soft white sand. Whether you prefer popular beaches like Playa Flamenco on Culebra Island or more secluded spots like Playa Negra in Vieques, there’s something for every type of beach lover.

Outdoor Activities: The island’s diverse landscape means you’ll have plenty of opportunities to enjoy nature. From exploring El Yunque National Forest, the only tropical rainforest in the U.S. National Forest System, to snorkeling in the bioluminescent bays of Fajardo, outdoor adventure is never far away.

If you’re someone who loves spending time in nature and craves sunshine, Puerto Rico’s climate and environment are undeniable draws.

You may also like to read: The Pros and Cons of Moving to a Warmer Climate. In this guide, we look at the advantages and disadvantages of moving somewhere that is hotter than where you live now.

5. Vibrant Culture and Lifestyle

Puerto Rico’s rich cultural history is another major draw for those looking to relocate.

The island has a vibrant and diverse heritage that blends indigenous Taíno roots, Spanish colonial influence, African traditions, and modern American culture.

This cultural fusion is evident in the island’s art, music, festivals, and cuisine.

Festivals and Music: Puerto Rico is known for its lively festivals, which occur year-round. From the colorful San Sebastián Street Festival in Old San Juan to traditional holidays like Three Kings Day, Puerto Ricans know how to celebrate. Music is also central to life on the island, with salsa, reggaeton, and bomba filling the air at every turn.

Cuisine: Puerto Rican food is a delicious mix of flavors and influences. Enjoy traditional dishes like mofongo, asopao, and lechón, as well as fresh tropical fruits and seafood. The food culture is a reflection of the island’s diversity, making it a culinary paradise for food lovers.

Life in Puerto Rico is more laid-back than on the U.S. mainland, and the island’s cultural vibrancy makes it a welcoming place for expats seeking community and a slower pace of life.

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6. Remote Work and Digital Nomad Haven

Puerto Rico is becoming a top destination for digital nomads and remote workers.

The island offers good internet connectivity and a lower cost of living, making it ideal for those who want to work in paradise.

Time Zone Convenience: Puerto Rico operates on Atlantic Standard Time (AST), which is only one hour ahead of Eastern Standard Time (EST) during much of the year. This makes it convenient for remote workers who need to stay connected with colleagues or clients based on the mainland.

With stunning scenery as a backdrop and a growing expat community, Puerto Rico is a fantastic option for those looking to embrace a flexible, mobile work lifestyle.

You may also like to read: The Ultimate Guide to Relocating for a Job. If you are thinking about moving to Puerto Rico for a new job then you will find this guide invaluable.

Should I Move to Puerto Rico?

Moving from the U.S. mainland to Puerto Rico offers a unique combination of financial, cultural, and lifestyle benefits.

With favorable tax policies, a lower cost of living, beautiful weather, and a vibrant cultural scene, Puerto Rico is an enticing destination for those seeking a new adventure without entirely leaving the comfort of the United States.

Whether you’re an entrepreneur looking for tax advantages, a retiree in search of a tropical paradise, or a digital nomad eager for a change of scenery, Puerto Rico provides a welcoming and enriching environment to call home.

To find out just how much it will cost you to relocate to Puerto Rico be sure to get your free, no-obligation quotes from professional movers today!

Good luck with your home move and be sure to check out home moving blog which is packed with guides to make your home move cheaper, easier, and safer.