[dodobirdlord]

You pay 0 federal income tax on income in Puerto Rico. That is, when the income is in Puerto Rico, not when you are in Puerto Rico. Capitol gains income happens where the capitol gains happen, not where you live. Even though you moved to Puerto Rico you would still have to pay capital gains tax on your capital gains in the non-territorial US. But if you had capital gains on Puerto Rican assets like Puerto Rico government bonds or you sold a stake in a Puerto Rican company in a transaction that took place in Puerto Rico, then you wouldn't have to pay tax on those gains.

If you can arrange for your capital gains elsewhere to look like income in Puerto Rico though, then you're all set.

[tmp192489]

What do you mean "when the capital gains" happens? Say I was an early employee of a company and received stock options. I exercised my options while living within the US and have private stock. The company IPOs, I move to Puerto Rico, and sell my shares while a resident there.

The "tax event" happens when I sell my shares, no?