When Daniel R. looks back on his life two years ago, the word that comes to mind isn’t stress, it’s compression. “Everything felt squeezed.”
Daniel was a 41-year-old digital marketing agency owner based in Boston, Massachusetts, running a seven-figure firm serving SaaS and professional services clients across the U.S. The business was successful by most definitions. Annual income hovered around $1.8 million, with roughly $1.3 million flowing through to him personally after expenses.
On paper, he was winning. In reality, he was exhausted.
Massachusetts winters were long and isolating. His calendar was packed with back-to-back calls. Travel felt obligatory rather than enjoyable. And every April, the same frustration resurfaced: writing seven-figure checks to federal and state tax authorities while feeling stuck.
Between 37% federal income tax, 5% Massachusetts state tax, Medicare surtaxes, and other pass-through obligations, Daniel was paying just over $640,000 per year in taxes. That wasn’t theoretical, it was cash leaving his operating account.
The part that bothered him most wasn’t just the number. It was the opportunity cost.
Daniel had a long-standing idea to launch a second business, a niche analytics software tool built from years of agency data. The concept was solid, but every year the answer was the same – not enough excess capital to fund it responsibly without adding stress.
Taxes weren’t just expensive. They were limiting his future.
Daniel first heard about Puerto Rico’s Act 60 from another founder in his network. His reaction was cautious. He wasn’t interested in uprooting his life for something that felt risky or unfamiliar, we understand that.
When he reached out to my team, he was hesitant, but wanted to know more and understand if this could potentially be a fit for his business.
What changed his perspective was realizing how much would stay the same.
Puerto Rico meant:
- U.S. federal currency
- No visa or immigration hurdles
- U.S.-based banking and lending practices
- Familiar legal and compliance systems
- Direct flights back to the mainland
This wasn’t a foreign relocation. It was a re-alignment. It also came with non-monetary perks that were much more aligned with how Daniel wanted to live and enjoy his life day-to-day.
After months of planning, Daniel made the move in late 2023, restructuring his agency to qualify under Act 60 and committing to bona fide Puerto Rico residency.
Life and Business, One Year Later
The difference was immediate, and not just financially.
Daniel now lives on the west side of the island, where mornings start with ocean air instead of traffic reports. His workdays are more focused. His health improved. The constant background pressure he’d normalized began to fade.
From a tax standpoint, the shift was dramatic.
Under Act 60, Daniel’s qualifying business income is taxed at 4%, with Puerto Rico residency eliminating state income tax entirely. His annual tax liability dropped from roughly $640,000 to just under $120,000.
That’s over $500,000 per year in retained capital.
Instead of disappearing into taxes, that money finally had a job.
Within his first year on the island, Daniel fully funded and launched his second business — without debt, without outside investors, and without pulling resources from his core agency. The new venture is already profitable and positioned to scale independently.
More importantly, Daniel no longer feels boxed in.
Ask Daniel today if the move was “worth it,” and he won’t start with numbers.
He’ll talk about clarity. About building businesses with intention instead of reaction. About designing a life where success isn’t constantly offset by burnout and financial friction. Puerto Rico didn’t just lower his tax rate, it gave him room to think bigger — and the capital to act on it. And for the first time in years, the future feels expansive again.