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If youre a bona fide resident of Puerto Rico, you generally arent required to file a U.S. federal income tax return if your only income is from sources within Puerto Rico.
Bona Fide Residents of Puerto Rico: Generally, you are a bona fide resident of Puerto Rico if during the tax year, you: Meet the presence test Do not have a tax home outside Puerto Rico, and Do not have a closer connection to the United States or to a foreign country than to Puerto Rico.
In summary, owning property in Puerto Rico comes with the responsibility of paying property taxes twice a year to CRIM and notifying them of any changes that may increase the propertys value.
While the Commonwealth government has its own tax laws, Puerto Rico residents are also required to pay US federal taxes, but most residents do not have to pay the federal personal income tax.
Residents of Puerto Rico who arent required to file a U.S. income tax return must file Form 1040-SS or Form 1040-SS (sp)PDF with the United States to report self-employment income and if necessary, pay self-employment tax.
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People also ask

So, just where is this haven? Puerto Rico holds a unique position as an unincorporated U.S. territory. Under Internal Revenue Code (IRC) 933, Puerto Rico source income is excluded from U.S. federal tax.
The term foreign country does not include U.S. territories such as Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, the U.S. Virgin Islands, or American Samoa.
There are no tax treaties between foreign countries and Puerto Rico. The Puerto Rico Supreme Court has recognised that Puerto Rico is not a signatory party to a treaty entered into by the United States; if an international treaty does not explicitly include Puerto Rico, the treaty will not be applicable to Puerto Rico.

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