#1 Paulson Said to Explore Puerto Rico as Home With Low Tax03-11-2013, 10:24 PM
By Katherine Burton, Stephanie Ruhle & Zachary R. Mider - Mar 11, 2013 8:58 AM CT
John Paulson, a lifelong New Yorker, is exploring a move to Puerto Rico, where a new law would eliminate taxes on gains from the $9.5 billion he has invested in his own hedge funds, according to four people who have spoken to him about a possible relocation.
Ten wealthy Americans have already taken advantage of the year-old Puerto Rican law that lets new residents pay no local or U.S. federal taxes on capital gains, according to Alberto Baco Bague, Secretary of Economic Development and Commerce of Puerto Rico. The marginal tax rate for affluent New Yorkers can exceed 50 percent on ordinary income.
I have a feeling that the governments of the world will finally corner these people and take their money, but of course corrupt officials within these governments will then steal much of it and funnel it into their own accounts which in turn will make them wealthy and turn them into the next targets. Class envy leads nowhere.
03-14-2013, 05:08 PM
I had a coworker once who was from Jamaica and who retired to Jamaica. I asked him if he thought he had enough to live on with only his pension (until he was old enough for Social Security), and he said life there is cheap. He doesn't have to worry about a furnace/bill, just electric, water and phone service. He lives in a more rural area, so the property was cheap to come by. He said he grows his own veggies and fruits, and meat is not that expensive there.
I would imagine it is a similar situation in Puerto Rico, away from the coastal resort areas.
03-15-2013, 12:36 AM
If you are a native, things get cheap real quick in that kind of situation. In an earlier life I was lucky enough to help a friend celebrate his naturalization as a citizen of the US. A few years later he was retiring and I found he was moving back to France and buying an olive orchard, a dream he had had since his childhood. I asked - Why get the US papers and then go back?
His answer "Tis the best of both worlds."
A former secretary of Mexican descent had her retirement planned in Cancun - for a third of what it would cost here or would cost a native of the US there.
It's been a long road and not all of it was paved.
A man is but a product of his thoughts. What he thinks, he becomes. Gandhi
03-16-2013, 12:40 PM
- Join Date
- Mar 2010
I worked in Barbados for a week and found it to be a tax haven for foreign retirees. It also offers a 95% literacy rate.
Peaceful. That's the word to describe Barbados. There is no such thing as a private beach; they are all public property. Cursing is illegal and will cost you 5$ per word; spitting on the sidewalk is illegal; disrespect for the elderly illegal; every child below the age of 18 must be in school during the day.
Most people in Barbados are black. And there is a liberal sprinkling of East Indians, white Europeans, and Americans. The native "Bajuns" will hold off speaking to you until you address them; I think that's because they are not entirely certain what language you will speak. The Bajun accent was easy for me. I also worked in Trinidad and Tobago. The accent there was undecipherable, at times.
I've worked in San Juan, PR, too. It's not for me. Like most of the Caribbean, it has been ruined by drugs.
And Jamaica was just plumb dangerous. Worked in Kingston a while. I won't be back.
BTW: We looked at retiring to The Bahamas once. Seems like their requirement was that you bring 500,000 in cash or securities, like New Zealand. My sister has a New Zealand passport, but has moved back to the states.
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