If you haven’t heard, Puerto Rico has hit a bit of a rough economic patch recently (to say the least). But, in order to help it turn the corner, the government has now implemented a number of incentives for businesses and individual investors to live, work, and profit more freely than almost anywhere in the Western Hemisphere!
Why Puerto Rico?
- Puerto Rico, although a protected territory of the U.S., has several advantages that no other part of the country can offer.
- Many industries offer income tax rates well below 5% to induce economic activity within those sectors.
- 4% fixed income tax rate on certain classifications of business income.
- 3% fixed income tax rate on business income considered “strategic.”
- Distributions from profits and earnings can be 100% tax exempt.
- 90-100% personal property tax exemption opportunities.
- 60-90% municipal tax exemption rates in certain areas for many specific types of operations.
- Puerto Rico offers the benefits of operating within a U.S. jurisdiction with the tax benefits of a foreign tax structure.
- Several incentives acts have been approved to stimulate economic development and attract Foreign Direct Investment (FDI) in the following sectors: manufacturing, tourism, exports, insurance, financial services, agriculture, hospitality and hotel development, and renewable energy.
- Puerto Rico has the largest, contiguous free trade zone and customs system in the U.S. and is also part of the same banking system that is regulated under U.S. law (e.g. FDIC).
- The official languages are English and Spanish, and no passport is required for U.S. Citizens. The U.S. Dollar is the official currency.
- Puerto Rico has a highly educated workforce due to its low-cost higher education structure, along with lower average labor rates than the mainland U.S.
- Puerto Rico is one of the most beautiful and friendly environments on the planet. (ok, we are a little biased!)
Convinced? Although you might be, we realize that expanding your business to and understanding the economic environment of an unfamiliar place might be a daunting task. We’re here to help.
"Whether you need a Ph.D. for specific research, a CPA for tax compliance, an attorney for legal advice, someone well-connected to help you navigate the bureaucratic waters of wherever you want to operate, or just a pair of boots on the ground to do the dirty work, there is no better place to find the professional you need," — Justin Vélez-Hagan, Founder and Executive Director
Starting businesses in Puerto Rico is quickly becoming a niche for our organization, which has now helped hundreds of businesses expand and grow, both on the mainland U.S. and within Puerto Rico.
How we can help:
Become a member and we will be happy to assist in any way we can with contacts, information, etc. However, if you are looking for a full-service approach, we will be glad to offer our Corporate Membership to assist with any of the following, and much more:
Tax Incentive Compliance and Planning
Government Affairs Assistance
Obtaining Permits & Understanding Regulations
So give us a ring, try us out, ask a question… hey, it won’t hurt! And rest assured that you have the assistance from a non-profit organization with the singular mission of helping to grow the economy (and your bottom line!).