US Expat Taxes in Puerto Rico
Puerto Rico is a US territory with special tax rules. US citizens living here may qualify for significant tax benefits under local incentive programs. Understanding the mirror tax system and local credits is essential for maximizing tax efficiency.
Tax Treaty Information
- No tax treaty exists between the US and Puerto Rico
- No reduced withholding provisions available
- FEIE and FTC are primary double taxation relief mechanisms
FBAR & FATCA Requirements
As a US territory, Puerto Rico financial accounts are not foreign accounts for FBAR purposes. Standard US tax filing obligations apply with territorial modifications.
Foreign Earned Income Exclusion (FEIE)
Puerto Rico is a US territory, so the FEIE does not apply. Bona fide residents may exclude territorial-source income from US federal taxation under applicable IRC provisions.
Need Expert Help Filing from Puerto Rico?
Our Enrolled Agents specialize in US expat tax filing and can ensure you're fully compliant with both US and Puerto Rico tax obligations.
Common Tax Issues in Puerto Rico
- 1Mirror tax system requires understanding of both US and local tax codes
- 2Bona fide residency requirements for territorial tax benefits
- 3Source-of-income rules determine which jurisdiction taxes specific income
- 4Local tax credits and incentives unique to Puerto Rico
Filing Deadlines
Local Tax Rates
0%-33% (Act 60: 4% corporate)
0%-15%
11.5% SUT
Local Resources
US Embassy in Puerto Rico
Consular services for US citizens in Puerto Rico
IRS International Taxpayers
IRS resources for US citizens abroad
Frequently Asked Questions: US Taxes in Puerto Rico
Do I need to file US taxes while living in Puerto Rico?
What accounts do I need to report on FBAR from Puerto Rico?
Should I use the FEIE or Foreign Tax Credit in Puerto Rico?
Related Country Guides
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