Dealing with banking, money and taxes in Puerto Rico is no simple matter. Expats may find that things don't run as smoothly on the island, so it is recommended to approach banking with a bit of patience and persistence.
Money in Puerto Rico
As a territory of the United States, Puerto Rico's currency is the United States Dollar (USD) subdivided into 100 cents.
Notes: 1 USD, 2 USD, 5 USD, 10 USD, 20 USD, 50 USD and 100 USD
Coins: 1, 5, 10, 25 and 50 cents, and 1 USD
Banking in Puerto Rico
Puerto Rico has several international and local banks scattered throughout the island. Bank branches are generally open Monday to Friday, with some opening on Saturdays. There are ATMs all over the island, but they may be harder to find in smaller towns.
Requirements to open a bank account include identification, proof of address and a minimum deposit. Expats do not need a social security number to open a bank account, although a bank may ask for one.
Taxes in Puerto Rico
The taxes paid by expats in Puerto Rico will differ according to their tax residency status. Expats in Puerto Rico for 183 days or more of the tax year are considered residents for tax purposes and must pay income tax on global earnings as well as income generated locally. Those who aren't tax residents only pay income tax on their earnings in Puerto Rico and aren't liable to pay tax on income generated outside the island.
Puerto Rico has a reputation for being a tax haven, but the generous incentives apply to businesses rather than individuals. That said, this does make Puerto Rico an excellent candidate for those looking to start a business.