Long-term capital gains are subject to a special tax rate of 15%. In the case of long-term capital gains, Puerto Rican non-resident foreign nationals are subject to a flat withholding rate of 25%. Puerto Rican non-resident US citizens are only subject to a flat withholding rate of 15% on long-term capital gains.

Does Puerto Rico pay US sales tax?

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.

Is food taxed in Puerto Rico?

Puerto Rico exempts groceries, prescription medicines, and business-to-business services from the commonwealth sales tax. Municipalities that collect a local sales tax, however, may collect up to a 1.5% tax on groceries and unprocessed foods.

How much money do you need to retire in Puerto Rico?

Cost of Retiring in Puerto Rico Total monthly expenses should typically be a total of four times your monthly rent, so you can expect to retire comfortably in Puerto Rico on about $2,000 per month. Even the more expensive parts of the island are still less expensive than most major U.S. cities.

How to calculate sales tax in Puerto Rico?

Sales tax exemption forms (as well as business sales tax id applications, sales tax returns, and the full Puerto Rico sales tax code) can be downloaded from the Puerto Rico Department of Revenue here . Whenever you make a purchase at a licensed Puerto Rico retailer, your sales tax will be automatically calculated and added to your bill.

Do you have to pay property tax in Puerto Rico?

Property Taxes. Any person engaged in trade or business in Puerto Rico, who on January 1th of any given year owns personal property used in such trade or business is subject to the personal property tax in the municipality where it is located, unless otherwise exempt.

Are there any sales tax exemptions in Puerto Rico?

Puerto Rico Sales Tax Exemptions. Puerto Rico doesn’t collect sales tax on purchases of most prescription drugs. Groceries is subject to special sales tax rates under Puerto Rico law. In most states, necessities such as groceries, clothes, and drugs are exempted from the sales tax or charged at a lower sales tax rate.

What is PR tax rate?

The Puerto Rico state sales tax rate is 6%, and the average PR sales tax after local surtaxes is 7%. Prescription Drugs are exempt from the Puerto Rico sales tax. Counties and cities can charge an additional local sales tax of up to 1%, for a maximum possible combined sales tax of 7%.