Personal Income Tax

$60-70k is a very nice salary for Puerto Rico. Not knowing the salary your family enjoys in Florida, it's hard to do a comparison of whether you'll have more after-tax, after-basic-expenses income in PR or Florida. PR certainly has a higher cost of living and your tax liability will probably be higher (please note this is not tax advice) than it was living in FL, but depending on your husband's current salary, the raise may justify the move.

You will be comfortable on $60-70K in Carolina. There is no question about that.

Thanks for the assurance! My husbnd was salary plus commission in FL, after bonus was making about 55-60k a year. And we are expecting to be closer to 70k in PR. I am just comcerned about the taxes and cost of food. We have to eat gluten free and would like to eat mostly organic is possible.

If you really want to know how much taxes you would have to pay I'd recommend to find a tax professional on the island. As you know there are many factors that will determine the amount of taxes you'd have to pay.

Having said that I agree with NomadLawyer that you should be doing just great on 60-70k.

Organic food is not (yet) very common here on the island. Check out this Facebook group - it might help you to find the right sources: https://www.facebook.com/PuertoRIcoOrganicFoodShopping

Thank you!! It is not a deal breaker but I would prefer it! We have 2 children and are married so we do have good deductions.

Hi, I'm not sure if you found your answer regarding Puerto Rico taxes but here is a link from IRS for federal taxes.

http://www.irs.gov/taxtopics/tc901.html

Can anyone tell me if we retire to Puerto Rico from the US and establish residency, will we have to pay federal income tax on our social security and withdrawals from our IRA investments?

Hi, Carol and welcome!  In the link I provided above, I believe you will have to pay the normal federal taxes on your income coming from the mainland.  Some of your social security may not be taxable depending on the amount of income from your IRA or other income.

Hope this helps, good luck!

Thanks for your response.  I did make a contact with HSBC.
We'll see if they can help.
Can you recommend any reliable CPAs or Tax Attorneys who are familiar with US citizens tax situation in the capital?
We arrive there first.
Also, we are interested in a good real estate agent who could show us around to see what is available in the price range we could manage.
Thanks,
Carol

I'm  sorry Carol, I don't have any names for you.  Maybe someone else can come in and help out.