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About Puerto Rico

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Government: Self-governing commonwealth under the U.S. Constitution

Geographical area: 9,100 sq. km, or about three times the size of Rhode Island

Population: 3.9 million

Rights & citizenship: Puerto Ricans are born American citizens. However, they cannot vote for the President of the United States while living in Puerto Rico.

History: In 1898, Puerto Rico was ceded to the U.S. as a result of the Spanish-American War. Puerto Ricans were granted U.S. citizenship in 1917. A constitution was enacted providing for internal self-government in 1952.


Currency: U.S. dollar

GDP: $43 billion in 2003. Encouraged by duty-free access to the U.S. and by tax incentives, U.S. firms have invested heavily in Puerto Rico since the 1950s. U.S. minimum wage laws apply.

Median income: $16,543 (median income for the 50 states: $42,409)

Percentage of households earning more than $100,00 per year: 2.4%

Taxes: Puerto Ricans pay no taxes to the federal government of the United States. Puerto Rico has a corporate income tax with a minimum rate of 2% and a maximum rate of 7%.


Number of CFPs: 14

Number of Investment Advisor subscribers (January 2004): 105

Sources: CIA Factbook; Puerto Rico Industrial Development Company of the Commonwealth of Puerto Rico; Certified Financial Planner Board of Standards; Investment Advisor BPA Audit


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