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Exploring the best banking jurisdictions: How Puerto Rico became a US territory

6/12/2024 8:00:00 AM
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In the Caribbean culture, history, and idiosyncrasy, Puerto Rico has many interesting things to tell. The background of Puerto Rico is based on a rich mixture that contributed to creating the island country that we know and love today. At Mundo, we love Puerto Rico and so do our readers. Considering the response to our previous entries about the subject, we decided to draft this piece presenting a brief history of Puerto Rico and how it became such an interesting destination for nomad capitalists and perpetual travelers.

A brief history of Puerto Rico, US

Although Spanish is its official language, and even though its people dance to salsa rhythms and reggaeton, the island belongs to the United States. After being a Spanish colony, it became a US territory in the 19th century.

As a result, the country presents now an outstanding combination with a Latin American feel and the advantages of a dollarized economy and financial stability. So, how Puerto Rico became a US territory? 

When it comes to the history of the Caribbean, the 19th century was a peculiar time. Before this, for four centuries, Spain had been the most advanced power having the largest number of colonies across the New World. Nonetheless, in the 19th century, only Puerto Rico and Cuba remained under Spain’s control. 

In both islands, there were independentist movements that generated confrontation, political turmoil, and social tension. Moreover, in 1898, a US warship was attacked and sunk. Although until this day nobody knows who was responsible, this event led the US to declare war on Spain, a decision that would determine the background of Puerto Rico and shift the Caribbean culture, history, and scenario. 

Finally, the northern nation, which was starting to become a world power, supported the independentist movements in Cuba and invaded Puerto Rico with the support of the Boricua people.

Since then, the relationships between both territories evolved. In 1940, all Puerto Rico-born individuals became US citizens by law. A few years later, in 1952, the US authorized the island to write its own constitution, although with limited powers, and allowed a local government. Now, Puerto Rico is considered a free associated state. 

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The history of Puerto Rico gave birth to a rich country in a peculiar position

Now that we've covered how Puerto Rico became a US territory, Mundo would like to remind all readers of its advantages. 

The title of this article reads “Exploring the best banking jurisdictions” and this is exactly what Puerto Rico is to us. In Puerto Rico, US characteristics and policies are present, and this makes it an attractive destination for everybody: Latin Americans, Americans, and people from any corner of the world.

Unlike other top banking jurisdictions like Saint Lucia, Puerto Rico is not subject to CRS. It is quite an attractive hub even when compared to sought-after banking environments like Panama.

Advantages of banking in Puerto Rico, US

When conducting international business, currency access is key. In this regard, Puerto Rico not only allows you to access the US dollar as the official currency. Here it's possible to open multi-currency accounts allowing for an easy exchange with rates based on Union Pay international. To consult the currency pairs available, check out our article "Why Puerto Rico Banking is one of the best options in the modern world".

Other perks place Puerto Rico banking as one of the ultimate options in our days. Competitive debit cards, SEPA payments, international payroll systems, and eCommerce-friendly approaches make the background of Puerto Rico even richer.

Disclaimer: this article presents only an overview of the history of Puerto Rico and how Puerto Rico became a US territory. However, this article should not be considered a professional, financial or banking consultation. If you want to set up an account in Puerto Rico, US, get in touch with any of our experts at Mundo or consult with a certified advisor.

What can we learn from this brief history of Puerto Rico

All in all, the background of Puerto Rico teaches us an important lesson. Certain events can change the course of a country and influence its political environment for many years. This is why embracing opportunities is important in the same way as taking advantage of the given conditions.

The Boricua people are friendly and supportive, and their country is in a unique position. Among other things, this is what makes the Island of Enchantment such an attractive place for global initiatives, international businesses, and investors who want to expand their reach into new territories.

Our experts at Mundo can help you open an account safely in Puerto Rico, US, in Panama as well as in other jurisdictions. Since we are committed to the philosophy of personal and financial freedom, we have created a network of experts and partners offering services for the modern investor trying to make his or her way in the globalization era.

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