Puerto Rico's Act 20 and 22

Relocating to Puerto Rico for Act 20 Act 22 Concierge

Puerto Rico’s Acts 20 and 22 provide a unique opportunity for businesses and investors to enjoy significant tax savings—the average participant’s effective total tax rate is reduced to just 7-10% of their annual income if they meet certain criteria (most importantly that they spend 183 days per year in Puerto Rico, have a “closer connection” to PR than to the States, and that their income is passive profit from services exported out of PR).
For those that meet the criteria, the program is life-changing—a dramatic move toward economic freedom while enjoying all of the protections of US law and living in a tropical paradise. The process of qualifying, transitioning, and settling, however, is daunting. That’s why we are here to help. 

Relocating to Puerto Rico for Act 20 Act 22 Concierge

Act 20/22 Relocation Services by REX: Relocation Experts

 Is this too good to be true? 

No, the structure established in Acts 20 and 22 is not a gimmick or a loophole, but was very intentionally established to bring entrepreneurs into Puerto Rico. It works for hundreds of individuals and is the best tax incentive available to Americans. As with any complex financial planning measure that spans two independent national taxing authorities, though, you need a good plan and good counsel to make sure that your move is structured properly.

 Will it work for me? 

The program has a wide range of applications, but is best suited to those that provide a virtual service to customers in the US: consulting, financial management, sales, technology services, app development, etc. You will eventually need to move most of your business to Puerto Rico and hire local staff. 

 The cost of living is very similar to the US average, so there is little financial risk to relocating and enrolling in the program. You must be willing to truly relocate your life to Puerto Rico. You cannot be halfhearted about this. Puerto Rico is a beautiful place with wonderful people, but it is also a frustrating and overall more dangerous place to live than in most of the continental US. It’s important to have a very strategic plan on how, when, and where to settle. 

Act 20/22 Relocation Services by REX: Relocation Experts

REX can offer customized services to make sure your transition is ideal. 

Relocating to Puerto Rico for Act 20 Act 22 Concierge

Where do I start? 

Chances are your local attorney and accountant will never have heard of this program. It’s wise to begin with an initial consultation with our experts to discuss your situation and goals so that you can determine whether relocating is in your best interest. This begins the due diligence process—an initial guided visit to the island and consultation with our networks of subject matter expert attorneys and accountants.

Act 20/22 Relocation Services by REX: Relocation Experts

 If you make the decision to move, REX will assist you every step of the way: 
Initial Structuring 
 Transplant Consulting 
 Legal Analysis 
 Government Applications 
 Accounting Services 
 Selecting a Home Base 

Transitioning Services
Commercial Leasing 
 Realty Services 
Moving/Import services 
Local Hiring 
Asset Management 
Government Registrations (DMV, etc) 

 Family and Lifestyle 
 School Placement 
 Language Training 
 Domestic Staffing 
 Social Integration

Contact us today:

Relocating to Puerto Rico for Act 20 Act 22 Concierge

The TOP 5 Reasons to Move to Puerto Rico

1. Act 20/22 - If you are on this site, you are most likely already considering Act 20/22.  REX can help you determine whether your particular job, salary and investments will fit the requirements and whether your current income would make the move worth it. In many cases, the tax jump from 50-60-65% down to around 4% make Puerto Rico a move you cannot pass up.

2. You can move to Puerto Rico for the tax benefits and still maintain your US citizenship. This is huge! There are plenty of countries you can move to to save your hard-earned money, but there are very few places where you can jump off the tax circus ride and still keep your US passport.

3. Many mainland conveniences exist in Puerto Rico. Things are absolutely different here, but you should be able to find most of the products you are used to, most of the food and beverages you prefer and hit up first run movies when they first come out. You will find Walmart, Costco, Sam's Club, Marshalls, McDonald's, etc along with several big malls with hundreds of familiar stores.  Amazon Prime also ships free to Puerto Rico!

The top 5 Reasons to move to Puerto Rico Act 20/22 Relocation Experts

4. English is widely spoken in Puerto Rico. Though Spanish is spoken widely, many people also know English which makes the transition to a new culture much easier.

5. There are plenty of beautiful places to explore, including El Yunque, the only rainforest in the US.  You will find waves slamming into boulders in Old San Juan, cute little towns scattered throughout the Island and modern surprises like the new Children's Museum in Carolina.

Should you move?  It depends on what you are looking for.

Call us today for a free consultation and we will help you
determine whether Puerto Rico is the place for you!


Palmas del Mar Beaches

If you are considering a move to Puerto Rico, you might be concerned about the recent algae infestations, strong undertows and littered beaches.  Those things are all the unfortunate truth. This is what the beach currently looks like at Palmas del Mar.
Palmas del Mar Beaches Sargasso
Palmas del Mar Beach behind Beach Village - note the seaweed :/
Palmas del Mar Beaches Sargasso
The seaweed and rip tides make these beaches unpleasant and sometimes dangerous to swim in -- they are lovely to walk along though!
Beyond the seaweed, one of the biggest issues about the beaches we have visited in Puerto Rico is the trash.  Luquillo was covered in trash, Mar ChiQuita in Manati had broken glass everywhere underfoot (though the cove itself is REALLY cool) and our little Glass Beach here in Palmas is often littered with beer cans, condoms and their wrappers and other trash.
BOO to love nests on beaches...
It is not spoken of often, and you will often hear the beautiful beaches listed as one of the great things about Puerto Rico, but the truth is that they are suffering. The beaches around Palmas, in particular, are rocky and have a strong undertow.  These are not safe swimming beaches and I won't let even my oldest kid any deeper than his knees/waist.  The waves aren't super strong, but the tow back out to the ocean can really catch you off guard and drownings are not rare.  Be careful. 

Another note on the rocks...if you are swimming, you need to get out far enough away rom the rocks so that you are not pushed back into them when a strong wave hits.  Also, the large rocks right around the shore have plenty of snails and greenery growing on them and are VERY slippery.  BE CAREFUL!

The seaweed comes and goes.  Sometimes there isn't too much and the beach is pleasant to walk along, but other times it can cover the entire sandy area.  The native seaweeds just look bad, but the Sargussum (reddish floating along the surface of the water) STINKS.  Sometimes it is gag-inducing and sometimes it just smells a little fishy/salty. 

The views of the ocean are GORGEOUS from Palmas.  The waves crashing into those rocks and cliffs are stunning and the long expanse of flat ocean is truly awesome. You can see the white in the google map image above from the waves crashing onto the rocks.

Most people will not tell you this ugly truth about Puerto Rico. Here at REX, we want to make your move as smooth as possible and part of that is telling the truth about the less pleasant aspects of the current Puerto Rican reality. We hope you move, of course, but we want you to move here with eyes wide open.

Also...looking UP is stunning!
Palmas del Mar Beaches Sargasso

UPDATE: November 2015 Hurricane season seems to have done good instead of ill to the beaches of Palmas del Mar at least!  There are now pretty pieces of bamboo and driftwood on the beach as opposed to hills of seaweed.  The problem?  There is still trash everywhere and broken pieces of glass that beach visitors are neglecting to take home with them...and yes...the condom wrappers still appear :/

Glass Beach as of November 2015
The worst of the seaweed problem was here in the harbor -- it is MUCH much better after a few minor hurricanes.
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Packing for an ACT 20/22 Family Move

REX Relocation Services helps you make the move from mainland to Puerto Rico, advising and easing you through confusing local procedures and customs and helping with everyday adjustments. The following article details a REX packing experience for a family of 6.

Learn what REX is all about HERE.

When we decided that our stay in Puerto Rico would be an extended stay - a move really - packing changed.  Instead of planning for a few weekends on the beach, I was now planning for a season of beach living.  This trip, and the packing for it, became more about defining what makes home "home" versus what we needed to enjoy a little getaway.  If you were to peek into our packed luggage, you might be a little confused though.  While the boxes and boxes of prescription contacts make sense, you might be confused about that bundle of muslin bags and that tote full of LEGOS.

1. First off, here is how we shipped the things we DID choose to bring. 4 Totes -- Solid plastic totes, filled to bursting with NON LIQUIDS and taped within an inch of their lives.  Shipped directly to our new address via USPS for $60 each.  Weight was between 40-70 pounds each. NOTE: UPS and FEDEX charge outrageous amounts to ship to Puerto Rico. USPS charges standard state-state rates.

2. Secondly, we packed 2 checked bags, checked tennis racket bag and checked golf club bag.  Southwest flies direct from Baltimore to San Juan, so that was our obvious choice and our checked items were included with the price of our tickets.  We could have checked more free, but were worried about the amount of room in the rented mini-van once we got to Puerto Rico.

3.  Carry-ons - The boys each had a small backpack, I had a carryon and diaper bag.  We splurged on kid tablets as well.  The kids have been begging for months and have been doing chores to earn tablets for a while now, so we bought super sturdy ones with great parental controls.  My husband carried a backpack personal item, small rolling carryon & the carseat.

That was IT.  

When it came to deciding if an item should stay or go, there were a few questions I asked for each item.

1. Can we get in Puerto Rico?
2. Is it particularly expensive in Puerto Rico?
3. Will we buy it once or many times?  (i.e. toothpaste vs electronic toothbrushes)
4. How much valuable space does it take up in the luggage?
5. How heavy is it?
6. How fragile is it?
7. How often do we use it?
8. Is it an "essential" piece of home?

Here is some more insight into some of the more interesting choices:

1. Roller Blades - They are heavy, bulky and hard to pack around.  WHY would be bring them??  In our new place, there are tons of sidewalks and places that the kids can safely skate.  They also ask to skate nearly everyday, so this is not a new activity, nor is it undervalued.  In lieu of bikes, at least for a time, skates are the best wheeling option.  Were we to replace them and purchase new, they would be far more expensive than the portion of a tote they took up.

2. LEGOS -  I allowed enough room for two plastic boxes (took up about half of one tote) filled completely with LEGOS.  We will need quiet time activities when the sun scorches in the afternoons, and aside from electronics, LEGOS are by far the favorite quiet time activity for the boys,  I snuck these boxes away about a month before the move so they would be fresh and exciting once we arrived.  I daresay LEGOS might be the best toy in terms of size and entertainment value.

3. Books -  We packed the kids' Bibles and they chose 2-3 small, light books that they wanted.  That is IT.  They are heavy and the kids do not read the same books over and over again anymore, so we will have to learn Spanish quickly and go to the local library.  I brought one book and have bought about 5 via Amazon since then. In hindsight, I wished we had packed more books because the kids really miss them and there is no real used English book market that we have found here. (FUN UPDATE: The postal store at Palmanova Plaza has a free book exchange and most are in English!  UPDATE #2 It is gone :/)

4. Other Toys
- Each boy picked out 5-6 small-medium toys and they were shipped out in totes.  The place we are living in Puerto Rico (Palmas del Mar) has tennis courts, many swimming areas, playgrounds, golf and even horseback riding.  We tire them out daily with activities, so toys are not as essential.

5. Essentials - There were some items that would take a TON of effort or expensive to duplicate in Puerto Rico, so these are the essentials that were non-negotiable: 1. Prescription Contacts and Glasses 2. Electric Toothbrushes and Regular Toothbrushes (small and can be expensive) 3. Fluoride Prescriptions for the kids (just in case).

6. Clothing - There are a lot of people in our family and thus A LOT of clothing, so clothing decisions were thought over quite a bit.  Let's start with youngest to oldest. The baby - We had tons of cute dresses and pretty 2T clothes that would never get worn if she doesn't wear them now.  Her clothes are also still fairly light and small, so I packed half a suitcase with baby clothing, shoes and accessories.  I did not buy anything new.

The Boys - The boys RUIN clothing and it is rare now to have many good hands me downs from our 9 year old to the 6 or 6 to the 5.  There were a few nice, new shorts I had purchased last year that were packed and about 10-12 swimsuits we already had.  Otherwise, we did not really have too much for the upcoming summer.  Instead of packing ratty old T-shirts, we saved the luggage space and weight and made a stop at Old Navy on the way home from the San Juan airport. Then we left because it was a MADHOUSE.  Plaza Las Americas is a massive mall and does an insane amount of business. You will be shocked at how busy all the stores are in Puerto Rico. There might be a huge debt the country owes, but it does not look like it from the outside.

I ended up going online, letting everyone pick their colors and used coupon codes to keep the price down.  We budgeted $500-$1,000 for the entire family and I ended up spending just under $300 for 50 cheap items from Old Navy and then around $100 on new socks and underwear at WalMart and Amazon.  The boys needed a bunch of T-shirts, some shorts and many, many sandals.  I did utilize tote space to pack all the new sneakers I had already purchased for the boys at Payless when they were 6 bucks or something. Me - I am probably the most difficult to pack and shop for clothing-wise, so one checked suitcase was almost entirely my things.  There is no Target in Puerto Rico, so my very favorite Target clothing and my very favorite summer dresses were packed.  I also spent a week shopping for proper summer undergarments.  I also invested in 6 pairs of sunglasses, because again, bright light makes me a grump and a half.  We shipped a nice suit and dress shoes in a tote. There are many Marshalls throughout Puerto Rico and is the only place I really shop now that we are settled in.

7. Toiletries - I packed some that I thought might be hard to find, but you need not.  There is literally everything you might need here.

8. Computers and Camera
- We both use our computers a lot for work, so we needed to pack several laptops, my camera, one extra lens and plenty of cords.  I also packed an old laptop for the kids.  The old laptop when in a tote mainly full of clothing and packed very tightly in the middle.  The more expensive items went in the one rolling carryon piece of luggage with NO toiletries or liquids.

9. Home - Determining which "things" really make home feel like home and which things are utterly disposable is quite an interesting exercise.  The house we are renting was stocked with towels, sheets, plates, etc, so those types of items were not a consideration.  The ridiculousness of my packing is mainly in the craft supply and gardening arena. Rainbow makers - It is such a silly thing, but these are small and make me smile whenever the sun passes by the windows where they hang each day and they were a non-negotiable for me.  I have THIS ONE and THIS DOUBLE ONE. Small Crafting Tools - If they were small and I didn't know if I could replace them in PR, I packed them.  Carving tools, clay tools, hot glue gun, etc. were all on the list.  While they might seem frivolous, both my job and my joy come from crafting, so I packed THIS:
Packing for an ACT 20/22 Family Move
Fabrics, Box of Jewelry Beads and Findings, Some Paper Craft Supplies
Packing for an ACT 20/22 Family Move
Four Baskets with Ribbons, String, Garlands, Stamping Tools, etc.
I also packed seeds -- tons of them -- none of them prohibited in Puerto Rico.  I knew I wanted to have a potted garden, and I was sad not getting to plant back in PA, so my seeds came with me. The tennis rackets and golf clubs - These were a last minute decision to bring along, but a good one.  As I mentioned, the complex has tennis courts and golf, so we knew we would be playing a lot.  The boys have all been playing tennis and have nice rackets, so it would be quite expensive to replace and they checked free on the flight.  They are also small enough to sit on if need be in the rented minivan.  Same goes with the golf clubs.  They are kid-sized which are hard to find and can be expensive, so checking them made sense.  We will rent or buy grown-up clubs since we do not currently own a nice set at home in PA.

What I did NOT pack:

Yoga mat - I knew there was a WalMart in Humacao and my mat would take up too much bulky space in the tote. Dirty Crafting Supplies - Paint, construction paper, glue, etc can all be found cheaply and could be a disaster if I tried to ship it. Large Liquids - Toothpaste, mouthwash, shampoo, conditioner -- all that stuff can be purchased at the local WalMart. Tons of Adult Shoes - We go through shoes fairly quickly and I only packed one nice, black pair along with a couple pairs of new sandals.  They take up way too much room to be shipping them.

If you are interested in learning more and making the leap, please read and contact REX:Relocation Experts.

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