EN ES

Tax Incentives

Puerto Rico The All Star Island from PRIDCO on Vimeo.

Puerto Rico is Open for Business and has just been declared an Opportunity Zone by the Federal Government! Take a look at some of the tax benefits the Island offers:

 

Act 20

Law to Promote Export of Services. Offers attractive tax incentives for up to twenty (20) years to companies that establish themselves and expand their export services in the Island. One of the benefits of this law is a fixed tax rate of 4%.

Act 22

Law to Encourage the Relocation of Individual Investors to Puerto Rico. This legislation seeks to attract new residents to the Island by offering a total tax exemption on passive income generated or accumulated, such as interest, dividends and capital gains, provided the individual is a bona fide resident of Puerto Rico.

Act 73

Puerto Rico Economic Incentives for Development Act. Legislation aimed to provide the environment and opportunities for the development of local industry, to offer an attractive contributory proposal, to attract foreign direct investment and to promote the economic and social development of Puerto Rico

Act 273

Regulates the organization and operation of international financial institutions  and grants tax exemption decrees, among other benefits. The IFE tax incentive is generally used by international banks, investment funds, hedge funds and family offices.

Act 399

International insurers and re-insurers Act which allows entities to organize a captive insurance in Puerto Rico. Tax exemptions for insurers that qualify for an international insurer license are 100% exempt on all income derived by the international insurer or international insurer holding company.

Act 185

Private Equity Funds aimed to promote the creation of jobs for professionals in the financial business in Puerto Rico, as well as the development of the securities industry on our Island. Private equity funds generally pay a 4% tax rate on gains.

Act 135

Law on Incentives and Financing for Young Entrepreneurs - hard working young adults within the ages of 16 to 35 who are bonafide residents of the Island and wish to create their own new business can apply. The act provides total tax exemption for individuals (from ages 16 to 26 making under $40,000) and total tax exemption for 3 years for new businesses owned by young adults over the first $500,000 of income).

Act 74

The Tourism Development Act, provides incentives for the development of world-class tourist industry, including the purchase of existing hotels. The benefits granted under this law will be valid for 10 years from the time that the eligibility of the tourism project is established. Among many benefits, zero (0%) tax is paid on ninety percent (90%) of all net income.

Act 14

Return and Retention of Doctors in Puerto Rico Act aims to keep and have doctors return to the island by offering them a great tax deal. medical specialists. Qualified physicians will pay a four (4%) income tax on their eligible income.

Property Taxes for Residential Real Estate in the Island: Compared to many states in the US, Puerto Rico offers lower property taxes on primary and second homes owned in the Island.