Are you looking to diversify your business or your investment portfolio by expanding outside the continental U.S.? Well, it’s happening in Puerto Rico. Home to a thriving business community, this island is also a great place to live and play. A commonwealth of the United States, Puerto Rico offers many economic incentives that make it an ideal destination for entrepreneurs, executives and investors looking to start a business, expand a business or invest in local businesses.
What are some of the benefits of doing business in Puerto Rico? With a stable legal system, a highly skilled and bilingual workforce and a robust infrastructure, it’s easy to launch or expand a business here. However, one of the biggest benefits to entrepreneurs is an efficient government that works hand-in-hand with business owners.
Puerto Rico’s new Plan for Economic Development is building on the commonwealth’s existing strengths to create an even more diversified, knowledge-driven economy that addresses the challenges of globalization and seizes emerging opportunities. The plan includes tax incentives for businesses in a wide range of industries, including manufacturing, tourism, science and technology. In addition:
- The Export Services Act (Act 20) provides tax incentives for companies that establish and expand export services businesses on the island. These incentives include a 4% corporate tax rate, 100% tax exemption on dividends or profit distributions, and 100% exemption on property taxes.
- For individuals who relocate to Puerto Rico, the Individual Investors Act (Act 22) provides a total exemption from local income taxes on all passive income realized or accrued after such individuals become bona fide residents. That includes dividends and interest income as well as capital gains.
Every tax incentive granted is a contract with the Puerto Rican government, legally guaranteed and protected by United States law. That means you can feel confident in the lasting benefits of relocating or establishing your business in Puerto Rico.
Boasting summer weather all year long, Puerto Rico is a great place to raise a family or to retire. The island offers excellent quality of life, with top-quality English and bilingual schools, U.S. certified health care institutions, luxury living alternatives, five-star beaches and gourmet restaurants.
Start out with a visit to Puerto Rico (I loved my visit to San Juan), and you’ll undoubtedly wish you could stay. With the current tax incentives and welcoming environment for businesses and investors, you have every reason to do so!
Are you interested in doing Business in Puerto Rico? Check out Business in Puerto Rico (@businessinpr) on all social channels and visit the official Business in Puerto Rico YouTube channel to learn more.