Puerto Rico
Caribbean · PR · 0 treaties
What are the main tax rates in Puerto Rico?
Puerto Rico has a top personal income tax rate of 33%, a corporate tax rate of 18.5%, and a capital gains tax rate of 15%. The standard VAT is 10.5%.
Tax profile
| Corporate income tax | 18.5% |
| Withholding — dividends | 15% |
| Withholding — interest | 0% |
| Withholding — royalties | 0% |
| VAT / GST (standard) | 10.5% |
| Personal income (top rate) | 33% |
| Capital gains | 15% |
| Tax system | Worldwide |
| Residency threshold | 183 days |
| Exit / departure tax | No |
| CFC rules | No |
| Transfer pricing | Basic |
| Digital nomad visa | No |
| Digital services tax | none |
| Global minimum tax (Pillar 2) | None |
Common questions
- What is Puerto Rico's tax system?
- Puerto Rico operates under a worldwide tax system.
- How long does it take to become a tax resident in Puerto Rico?
- It takes 183 days to establish tax residency in Puerto Rico.
- Are cryptocurrency gains taxed in Puerto Rico?
- Cryptocurrency is classified as exempt in Puerto Rico, with long-term gains also being exempt.
Tax residency
ModerateWhat makes you a tax resident — and how hard it is to stop being one.
- Domiciled in Puerto Rico (resident individual means an individual who is domiciled in Puerto Rico)
- Presence in Puerto Rico for at least 183 days during the calendar year creates a presumption of residence
- Bona fide resident tests for U.S. tax purposes (presence test, tax home in Puerto Rico, and no closer connection to the United States or a foreign country than to Puerto Rico)
Under Puerto Rico’s own income tax law, residence is fundamentally based on domicile, with a 183‑day presence rule creating only a rebuttable presumption; breaking residency therefore requires both leaving and establishing domicile elsewhere rather than simply staying under a day count. For U.S. federal purposes, stopping Puerto Rico bona fide residency also requires failing the presence, tax home, or closer‑connection tests, but there is no citizenship‑based worldwide Puerto Rico tax once domicile and these tests are broken.
Source: Puerto Rico Treasury Department (via summarized residence definition)
Tax treaty network (3)
In-force double-tax treaty partners. Treaty-reduced withholding (dividends / interest / royalties) shown where the official source publishes a rate; otherwise the country's statutory rate applies unless the treaty text provides a reduction.
| Partner | Div | Int | Roy |
|---|---|---|---|
| Canada | 15% | 10% | 10% |
| Mexico | 10% | 4% | 10% |
| United States of America | 15% | 10% | 10% |