There are countries ( like Mexico, Nicaragua, Panama, Myanmar, Singapore – to name just a few) that welcome immigrants, particularly those, who, like retirees or investors, will bring their money with them, without competing for the jobs with the locals. Those countries try to lure those desirable immigrants by allowing them a host of priviliges, of which most common is a right to bring their possesions like cars, furnishing and other household items duty free.
Not Puerto Rico. Puerto Rico is rarely a retirement destination for Americans, other than Nyoricans (= New York Puertoricans) although it could for most Americans be a “living overseas light” destination, a primer in the pleasures and perils of living in another climate, another culture, yet with many aspects of life similar to those in the USA.
For starters US citizens do not need to jump though legal hoops to gain residency – Puerto Rico is a US territory and – at least in theory – every US citizen – or resident – is entitled to living – and even working - in Puerto Rico.
Yes, there is a high unemployment in Puerto Rico and the income levels are much lower than in the USA:- according to official statistic the unemployement rate is over 12%, while median wage in Puerto Rico is only about 1/3 of the median wage in the lowest median-wage state in the USA – Mississippi. And the cost of living in Puerto Rico is higher than anywhere else in the Caribbean or Latin America, with San Juan supposedly the most expensive city in the Caribbean – but – legally – there are no legal restrictions on a US immigrants’ right to live and work there.
There are, however, economic restrictions: Puerto Rico tries hard to restrict the influx of immigrants – any kind of immigrants – by imposing excise duties on any and all goods brought to the island by practically anybody. Even its turist board, while welcoming vacationers, is doing its best to discourage potential immigrants: on its discussion board, experts on Puerto Rico try hard to actively discourage anybody whose questions suggest a willingness to become a Puerto Rican resident.
They point to island’s overcrowding ( which, statistically, is undoubtedly true: Puerto Rico has a population density much higher than most other places in the world), on its low income levels ( also, judging by statistics – true), lack of public transportation, which is at least one of the causes of the horrific amount of cars on the island, judging both by its size and by a cars per capita ratio.
Somehow you don’t find them discussing positives, like a much better access to affordable health care. – far, far more affordable than in the US proper.
Positives like the islands bilingual status, which, at least in theory, should allow you to conduct at least government business in English – though I have as yet no information on how well does it actually work in practice.
Positives like similarity of laws and jurisprudence, which – although tinged with Spanish traditions – appears to be pretty americanized. No, I am not a – blind – fan of American legal system or its jurisprudence – far from it. I simply think that to an average US citizen similarity of jurisprudence is a plus, a fact that makes assimilation easier.
Positives like an abundance of American stores with goods a US citizen is familiar with. Etc. Etc.
Add to it a rich culture, a – save for transportation – well developed infrastracture, an abundance of natural diversity: beaches galore, mountains galore, and all kinds of forests, from dry forest (Guanica) to rain forest (El Yunque); great food, pleasant climate through most of the year, etc.
Finally, consider proximity to the United States and ease of reaching it thanks to a well developed network of flights.
But…. if you decide to not stay away …. be prepared to pay for everything you bring there. And if you decide to bring a car – which you can hardly live without on a relatively large island with no transportation – you’ll pay through the nose.
The newer and more fancy car, the more you’ll pay in excise taxes: nominally up to 40% of your car’s value ….but with shipping costs added to the value, to make the tax even higher.
It may not be a sufficient deterrent to someone who knows Puerto Rico, knows that he/she likes living there and plans on staying there a long time. But for someone who is moving there on a temporary basis – who, like me, was offered a job, a contract or an assignment there with a possibility to end it after 6 months, a year, two years, but with an option to stay there as long as one likes, it becomes a guessing game, an exercise in figuring out how to balance cost and comfort.
Is it worth while bringing my car over if I decide to stay there only six months? Or will I be better off buying – or renting/leasing a car there, even though cars cost considerably more over there? What if I stay a year, or two, or indefinitively? The calculation will change in each and every case, so you have to factor different scenarios, assign probabilities, etc.
Still, life seldom follows the logical patterns and the probabilities assigned by our mind are vulnerable to the havoc our irrational emotions – or even fleeting moods of estrangement and loneliness – might at any time wreck on them. Why, or why can’t we be more lice Vulcans (= from Star Trek)???
Or Puerto Rico more immigrant friendly?
September 16, 2007 at 7:38 pm
My advice?
Only study the positives.
September 16, 2007 at 8:10 pm
that could lead to too many disappointments, I am afraid… and anyway, mental gymnastics supposedly can stave off dementia
December 11, 2007 at 1:39 am
Hmm, let’s see… we have an ice storm approaching Chicago, the days are short, haven’t seen the sun in a week – BUT! I have my flight booked to PR.
Look up zip code 00738 on weather.com and ignore the showers
December 11, 2007 at 11:05 am
Ouch, sorry to bring bad news, Walter, but PR is just in a tropical depression, the rain is pouring and is supposed to do so for the next two weeks and after that a cold front is coming.
( But a cold front here is around 70 I was told. Have a nice visit despite the rain.
And welcome you to visit my new blog, http://www.retirement-merry-go-round.blogspot.com, where I write a lot more about Puerto Rico
January 10, 2008 at 1:35 am
Well, I liked your comments – and you failed to add that Puerto Rico also taxes retirement income. What galls me is the really, really large subsidy the US pays PR – but you are so correct in pointing out that US retirees would bring large sums of money to support a service economy – what a wealth of jobs and taxes.