🇯🇵 Japan vs 🇵🇷 Puerto Rico
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇯🇵 Japan | 🇵🇷 Puerto Rico |
|---|---|---|
| Tax System | Non-Permanent Resident | Act 60 Incentives |
| Income Tax (Foreign) | 5-45% | 0% (export services) |
| Capital Gains Tax | 0% (foreign, NPR) | 0% (post-move gains) |
| Corporate Tax | 23-30% | 4% (export services) |
| Residency Requirement | Various visas | US citizens only |
| Minimum Stay | NPR status first 5 years | 183 days |
| Cost of Living | High ($2,500-4,500/mo) | Moderate ($2,500-4,000/mo) |
🇯🇵 Japan
Highlights
- ✅NPR regime excludes foreign gains
- ✅Amazing culture
- ✅Safe country
- ✅Great infrastructure
- ✅Digital nomad visa coming
Considerations
- ⚠️High taxes after NPR ends
- ⚠️Language barrier
- ⚠️Complex bureaucracy
Best For
- 👤Culture enthusiasts
- 👤First 5 years tax planning
🇵🇷 Puerto Rico
Highlights
- ✅US territory - no FEIE needed
- ✅Act 60 tax incentives
- ✅Zero capital gains post-move
- ✅4% corporate tax
- ✅Beach lifestyle
Considerations
- ⚠️Only for US citizens
- ⚠️Must meet presence tests
- ⚠️Hurricane risk
Best For
- 👤US citizens
- 👤Crypto investors
- 👤Export service businesses
Which Should You Choose?
Choose Japan if: You prioritize npr regime excludes foreign gains and amazing culture. Ideal for culture enthusiasts, first 5 years tax planning.
Choose Puerto Rico if: You prioritize us territory - no feie needed and act 60 tax incentives. Ideal for us citizens, crypto investors, export service businesses.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.