The Wall Street Journal (reposted on Realtor.com) says lower taxes are among the reasons why wealthy buyers from high-tax states like California & New York are buying homes in Puerto Rico where luxury developers are reporting that business is brisk. According to the WSJ, sales of Puerto Rican luxury houses and condominiums have been spiking during the Coronavirus pandemic with developers reporting increasing sales volume & prices compared with 2019. Of course it might also help that Puerto Rico doesn’t only has an income tax but doesn’t have any federal or local income taxes (for qualified residents).
“As awful as the [pandemic] is, it breathes new life into the Puerto Rican economy,” said Rodrick Miller, chief executive of Invest Puerto Rico, a not-for-profit organization trying to attract business investment.
“Puerto Rican residents pay Puerto Rico income tax of up to 33% but no other federal or local income taxes on earnings while living in the territory. Also, there are a number of ways a person can meet requirements to be considered a resident of Puerto Rico, one of which includes living there 183 days a year.”