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Puerto Rico Wants To Become Tax Haven For Wealthy Foreigners

Tax Haven For Wealthy Foreigners?
Roque Planas
By 

National Reporter, HuffPost

People walk in a street of the historic colonial section of San Juan named Old San Juan in Puerto Rico, Jan. 24, 2013. In recent years, Old San Juan has been on an upswing; its cobblestone streets are cleaner and livelier. New stores, restaurants and coffee shops have opened and many of the old homes have been restored. It's a working city, home to the governor's office and mansion _ said to be the oldest in the western hemisphere _ as well as other government offices and an increasing number of professional firms. It's also become an increasingly busy cruise ship port and outlet and luxury goods shops have proliferated in response. (AP Photo/Ricardo Arduengo)
People walk in a street of the historic colonial section of San Juan named Old San Juan in Puerto Rico, Jan. 24, 2013. In recent years, Old San Juan has been on an upswing; its cobblestone streets are cleaner and livelier. New stores, restaurants and coffee shops have opened and many of the old homes have been restored. It's a working city, home to the governor's office and mansion _ said to be the oldest in the western hemisphere _ as well as other government offices and an increasing number of professional firms. It's also become an increasingly busy cruise ship port and outlet and luxury goods shops have proliferated in response. (AP Photo/Ricardo Arduengo)

Hedge fund manager and subprime bubble popper John Paulson is considering a move to Puerto Rico after a new law exempted immigrants from capital gains taxes in a bid to attract new residents with Paulson-esque levels of wealth.

There’s really only one question to ask: What took Puerto Rico so long?

The island nation is well positioned to join other offshore locations, like UK territories Jersey and the Cayman Islands, in helping wealthy individuals pay less tax. Puerto Rico is a US territory, which means it is technically part of the United States but largely administered by an insular local government. It is a four-hour flight from New York City, offers a nice climate, and doesn’t have another obvious strategy for economic growth. But most important is the law passed last year, which exempts new residents from the island’s already small 10% capital gains tax.

Read more on Quartz

Before You Go

A Majority Didn't Support Statehood

5 Reasons Why Puerto Rico Probably Won't Become The 51st State

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