Despite what the mainstream media outlets will tell you since the pandemic started, it isn’t all doom and gloom ahead of us. I’m actually really optimistic about opportunities in the market over the coming years, although it appears that we are only beginning to descend into the chaos and tough times ahead in the economy. Nonetheless, now is as good a time as ever to begin building your fortunes and diversifying some wealth across different asset classes and locations. Whether that means starting a new business, or maybe relocating to a different country to lower your tax liability, designing and implementing an effective Plan B strategy is incredibly easy and comes with zero downside risk. The only requirement is that you begin taking action now. Since Covid-19 started, we’ve seen an unprecedented expansion in the money supply and an invasive crackdown from big governments on many of our basic freedoms. We’re no longer supposed to even sit down at dinner with our family members due to the hysterical fear of the pandemic. And if that isn’t enough, politicians plan to raise your tax rates to pay for all of it. The bureaucrats will print and blow through a trillion dollars like its toilet paper! The amount of sovereign debt accumulating each day is so large that people cannot even fathom it. The numbers are completely arbitrary and no longer even have any meaning. Trillions of dollars being printed and thrown around like its nothing.
Central banks around the world are printing cash like its going out of style. Trillion dollar stimulus packages are being passed to incentivize everyone to stay in their houses and not work. Asset prices are at all-time-highs across the board with very few exceptions, gold and silver being one of them. That brings me to the point that the next 5-10 years are likely to be the most inflationary period we’ve seen in modern history. It’s entirely reasonable to expect 10-15% inflation, despite what the official government rate may say in the years to come. The official rate is always inaccurate and not a true indicator of the real inflation rate and the erosion of our savings and purchasing power. Is this really the system we want to live in? Where our money is entirely manipulated by a fumbling bureaucracy, and where the media censors anything that doesn’t fit the current narrative. Where the woke mobs on Twitter rule supreme and will cancel anyone who doesn’t believe in the redistribution of wealth by the state and an extreme leftist political agenda.
We’ve experienced over the past year a shocking loss of freedom where we’re told we can’t interact with each other in any of the same ways we used to. Places like the United States have accelerated their descent into surveillance police states, and freedom of speech isn’t respected or highly regarded how it was in the past. This is why I can’t stress enough the importance in having a backup plan. I moved to Puerto Rico over a year ago to implement my own Plan B, and the results have been spectacular. Since re-domiciling my business in Puerto Rico, the corporate income tax rate is fixed at 4% on all the profits from my business, while my state and federal tax burdens in the US have dropped to ZERO.
I applied for a tax incentive that we often discuss, Puerto Rico’s Act 20, as it was called back before 2020. Most, if not all, of my income should qualify under the Export Services Act (now called Chapter 3 of Act 60) to be subject to just a fixed 4% corporate tax rate. The tax savings alone have made the move an incredible opportunity, not to mention all the exciting business and investment potential taking place in Puerto Rico.
According to the rules, you still have to pay yourself a reasonable salary. But that amount of salary will only be subject to Puerto Rico’s top income tax rate of 33%.
The remainder of the profits will be taxed at a fixed 4% by Puerto Rico. Again, with a US federal tax rate of ZERO, you can see how this is a sure way of increasing your net worth and your earning potential every year. This all works because bona fide residents of Puerto Rico don’t owe federal taxes on income that’s sourced in Puerto Rico. Puerto Rico is a US territory, therefore it maintains an independent tax system and doesn’t follow the same rules as US states. And this is what makes Puerto Rico an extraordinary tax option for US citizens. It is the most tax-efficient structure for any American that doesn’t wish to renounce their citizenship, plus it’s one of the simplest and surest ways that entrepreneurs and investors can legally slash their taxes below 10%.
Puerto Rico does have its drawbacks just like any other place. The infrastructure is pitiful, and government corruption is so widespread that it’s almost laughable. But the advantages significantly outweigh the disadvantages. Anybody can benefit from looking for a more cost-effective, pro-business lifestyle option for setting up a residence and running your business or investments. Puerto Rico is an incredibly attractive opportunity and deserves a second look as you craft your own plans for moving offshore and building wealth in today’s economy.