testosteronepit.com / By Nick Giambruno, internationalman.com / April 9, 2014 at 2:43PM
It’s been a little over a year since I sat down with Peter Schiff at his house in Connecticut to discuss the importance of international diversification. Since then, the options available to take protective measures have declined in many ways, especially as the destructive FATCA law comes into force.
While some doors have closed, others have opened. And perhaps one of the most significant new opportunities in the world today is the tax incentives in Puerto Rico.
In fact, Alex Daley and Louis James, two of my Casey Research colleagues, have already moved to Puerto Rico to take advantage of the tropical weather and low taxes.
Peter Schiff is also moving there. He has already moved one of his businesses there and plans to move personally sometime in the future.
It’s not an exaggeration to say that these new incentives in Puerto Rico have been life-changing.
Any American looking for relief from the suffocating burden of ever-increasing taxation should seriously look into the Puerto Rico option.
Peter and I discuss it in detail below. You won’t want to miss this fascinating discussion.
But first, I’d encourage you to check out the fully revised and updated version of Peter’s book The Real Crash, which just hit the shelves. It’s a must read if you want to understand the economic abyss that is staring the US in the face.
And now to our discussion on the stunning tax benefits of Puerto Rico.
Nick Giambruno: Peter, tell us about your take on the situation in Puerto Rico and some of the opportunities it offers.
Peter Schiff: The Puerto Rican situation is actually quite appealing for Americans who own businesses because the way they have reformed their tax law is very favorable to businesses that are generating their income out of Puerto Rico—Puerto Rican-sourced income.
So if you are doing something, if you go to Puerto Rico and do it—if you incorporate a business in Puerto Rico and operate your business from Puerto Rico—the tax treatment is very favorable. You basically pay a 4% effective tax rate.