Taxable Assets for Puerto Rico Domiciliaries

Offshore Tax with HTJ.tax · May 1, 2026 · 1m

For individuals domiciled in Puerto Rico, U.S. estate tax follows a hybrid system under the Internal Revenue Code—similar in many ways to the treatment of nonresident aliens.⚖️ 1️⃣ What Is Taxable?Puerto Rico domiciliaries are generally subject to U.S. estate tax only on U.S.-situs assets.📊 Key Taxable Assets• U.S. real estate (e.g., property located in mainland U.S.) • Tangible personal property located in the United States • Stock of U.S. corporations👉 These assets fall within the U.S. estate tax net.🌴 2️⃣ What Is NOT Taxable?A major advantage:• Assets located in Puerto Rico are generally…