In times of crisis, addressing people’s immediate needs and struggles must take precedence over business opportunities. The ongoing challenges in Los Angeles underscore broader trends that may prompt high-net-worth individuals (HNWIs) to reconsider their domicile.

Over the past decade, many HNWIs have chosen to leave high-tax jurisdictions like California in favor of more tax-friendly states such as Texas and Florida. These states offer zero personal income tax, making them attractive for wealth preservation.

Puerto Rico has also garnered increasing attention from HNWIs seeking favorable tax environments. With its unique incentives under Acts 20/22 (now unified under Act 60), Puerto Rico provides a 4% corporate tax rate, 0% federal income tax, and 0% capital gains tax for qualified residents. These benefits, combined with the island’s proximity to the mainland U.S. and its vibrant lifestyle, position Puerto Rico as a compelling option for relocation.

Could Puerto Rico emerge as a viable alternative for displaced HNWIs, particularly given the complexities in California and other high-tax regions? Beyond tax advantages, considerations such as quality of life, infrastructure, and long-term stability will undoubtedly influence these decisions.

However, it’s important to acknowledge the devastating impact of crises on families who may lack such options. Our deepest sympathies go out to those who have lost everything. Puerto Ricans faced similar adversity after Hurricane Maria, which united us as a nation. For those who choose to stay and rebuild, may their efforts lead to a safer, stronger community for future generations.