'plus and minuses of retirement in puerto rico' Retirement  

dennis e moffett (69.214.178.57) -

what are the advantages of retiring to puerto rico as opposed to any place in the usa?

whatadvantages are there?

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Reply #1 Rick (69.142.105.125) -

hi,I was thinking the same thing. I have a Puerto Rican friend who moved back and thought it was great. I visited him and it is nice place, the people were extremely friendly. I'm going back maybe in January but it's difficult trying to deceide where to look for property. I think to live as an American would be expensive, livivng with the locals would be fun but it's not the America I'm use to. Not to say it's not good but different. I haven't traveled much but so far Pureto Ricans are the nicest people I've met. Keep in touch and let me know how you make out. Rick

Reply #2 Pedro (199.184.38.5) -

From a personal finance standpoint, there really is no advantage as compared to living in any other state - if you are asking from the tax standpoint, etc. There is a difference though in that in Puerto Rico you'll be fully taxed by the State government (PR Hacienda), as opposed to the Federal government, which does this through agreement with PR. The aforementioned assumes you are a resident of Puerto Rico and is regardless if your income comes from Social Security or whatnot. The agreement portion comes in when you file your Federal Taxes and put in the "Foreign Tax Credit" form for being taxed in Puerto Rico. Yes, it sounds as if it where a foreign country arrangement and in a way it is. Despite being a US territory, for tax purposes in Puerto Rico they have a fiscal automony in taxation.

PR taxes are pretty steep, so all in all, your total % of income taxes may be greater than the combination of state-and-federal in one of the US states.

Aside from that... advantages include great weather, beaches, a beautiful country, and a totally different culture.

Reply #3 Bert Rosenheck (71.187.168.74) -

Hi. My wife and I have owned a condo in Playa Azul (Luquillo) for many years and have been coming down several times a year on vacation. We love it. We are now trying to evaluate the +- of leaving NJ where we now live, to become permanent residents in our soon to happen retirement. I need to get a better handle on tax issues and estate planning issues among others. We will of course check with the appropriate professional advisers but would welcome any anecdotal insights.

Reply #4 A. Hernandez (64.12.117.202) -

Saludos. It is my understanding that when you move to Puerto Rico, you only pay your federal taxes and no local taxes if your pension is coming from the mainland. Could anyone clarify this point of taxation? I am very grateful.

Reply #5 Sandra and Ben (166.214.23.8) - Mon Apr 21 19:40:36 2008

My husband and I have been living in Florida for the last 23 years and even though we loved it, the property taxes and expenses are so great and my husband is retired, that we are seriously considering moving to Puerto Rico since my family is there and they believe that it would be a lot easier for us financially since we would not have to pay for rent or property taxes.

Is anyone aware of who to talk to or a website (calculator) regarding the amount of taxes to pay the government regarding pension and social security. We are confused on how to review this information?

Thank you so much for all the information!!!!!

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