The Commonwealth of Puerto Rico, located in the Caribbean Sea about 1,600 km east-southeast of Miami, has a mountainous, tropical ecosystem. The ‘Island of Enchantment’ is well known for its standard of living, which owns to one of the highest in the Western Hemisphere. The capital San Juan is home of the world’s busiest cruise-ship port. English and Spanish are the official languages, although Spanish is predominant. The vast majority of recent immigrants come from the island of Hispaniola. Its unique mix of culture is influenced by Taíno, Spanish, European, African and North American. Puerto Rico is a main hub of Caribbean’s commerce, communications, tourism, and finance sector.
Puerto Rico is known for its high income economy and as one of the most competitive economies in Latin America. The country has tax exemptions and duty-free access to the United States, both factors have created a positive increase in the economic growth. Manufacturing, pharmaceutical, electronics, agriculture, real estate, insurance, tourism, and finance are the main sources of revenue. Puerto Rico has achieved a high diversified and powerful industrial economy but the significant population growth and associated high unemployment have contributed to social and economic problems and prompted migration.
Contracting in Puerto Rico is acceptable but not common for individuals and has some subtle nuances. There are hidden on-costs for employers. Some local taxes over and above the federal tax and social system apply. To facilitate contractors and foreign nationals working in Puerto Rico, forward planning is of the essence. USA has entered into Double Taxation Treaties with most countries.
For foreign national contract workers, contracting in Puerto Rico, it would be wise to consult with CXC Global on the best way to structure, and how best to balance your taxation.