Louis James: Junior Mining Investors Should Move to Puerto Rico! – 6/15/14
Collin Kettell met up with Louis James in Dallas last weekend at the Stansberry Resource Conference to learn about his recent move to Puerto Rico. Tax incentives implemented by the Puerto Rican government is making the country a fantastic destination for U.S. Citizens. Louis moved to the island a few months back and he is not regretting it one bit…
Louis explains the primary tax incentives that have been made available to individuals — Act 20 & Act 22. Act 22 grants individuals moving to Puerto Rico a zero capital gains tax for a 20 year period. Louis stresses that this is for Puerto Rican gains which applies to any real estate holdings and any stock investments held by a Puerto Rican resident. By moving to the country, any gains made on a forward basis will have zero tax.
Louis points out that there is no lower tax in the world and there is no jurisdiction other than a U.S. Territory like Puerto Rico that could offer this to U.S. Citizens. With enormous gains ahead for the resource sector, Louis believes that now is an incredible time for resource investors to take advantage of Act 22.
Act 20 allows individuals to set up a Puerto Rican company with corporate taxes between 3-4%. Louis points out that you must still pay yourself a reasonable salary, but profits that remain in a Puerto Rican company benefit from a very low tax. Louis has set up a company in Puerto Rico and he exports his writing services to Casey Research in Vermont.
We ask Louis about the quality of life in Puerto Rico and he describes it as a mixed basket — paradise on the one hand and a bit of third world on the other. He suggests prospective buyers come down for a week and get a feel for the country prior to relocating.
Moving away from Puerto Rico,we ask Louis to tell our listeners abut an obscure country that has exciting mining potential — Burkina Faso. Neighboring Ghana is now the second largest gold producer in Africa and shares similar geology to Burkina Faso.
Burkina Faso has witnessed Ghana’s success over the past few years and is working hard to create a strong mining industry. Louis has seen companies in Burkina Faso get permitted and into production in just six months — unheard of in most places in the world.
Finally, Louis shares his favorite commodity play at this time in the market — platinum group metals. He sees a lot of supply side troubles in South Africa, as well as a strong worldwide demand. Louis is most keen on the precious metals and the base metals, and the platinum group metals combine the best of both worlds.
Listeners can visit www.internationalman.com to order a detailed report on Puerto Rico.