U.S. Virgin Islands

Just like Puerto Rico, the territory gets to keep it for itself.

So do those territories make a big push to get wealth retired folks to move there? USVI sounds like it might be a good retirement location, and no local income tax.

There are certainly plenty of retired mainlanders on St John.

The weather is lovely but there's precious little to do other than diving and drinking, the economy is chronically fragile and it's one of the poorest parts of the US while having a high cost of living due to most stuff being barged over from Puerto Rico, and every year there is the risk of being wiped out by a hurricane.

Personally, I'll take my chances with the taxes and the weather here in New York.

R's, John

Neither does Texas, Florida, Nevada, and several other states.

If you relocate to US Virgin Islands or Puerto Rico, does the expatriation tax 877A apply?

good input, except for that last part. I'll stay as far away from NY taxes as possible.

yes, but if USVI gets to keep the federal income tax, I would think they would be making a huge push.

No one has expatriated. Therefore, Subchapter N, Part II of Title 26 is not applicable.

They suffer from chronic underemployment so they've offered huge tax incentives to businesses, like 90% rebate of taxes. As you might expect, that has led to a variety of tax scams in which companies are not as resident in the USVI as they would like the authorities to belive. It's easy to find out about them via Google. I agree it could make financial sense for them to encourage resident snowbirds, but as far as I know they haven't.

It's a nice place for a sun and sand vacation. Go check it out someday. Don't miss the Hess oil refinery and the rum producers that now import all their molasses from elsewhere.

R's, John