February is a cold and dreary month in much of the United States. But if you were in Puerto Rico, you’d be enjoying warm weather and sunny skies right now. The business outlook in Puerto Rico is just as sunny. It’s happening in Puerto Rico for entrepreneurs and business executives who want to diversify by expanding their businesses or investments outside the U.S.
If you want to enjoy a high standard of living and a smooth transition to island life, as well as the opportunity to grow your business or investments, you’ll find Puerto Rico’s economic environment as welcoming as its weather. The island is a U.S. commonwealth, so there is a robust U.S. legal system in place, and the U.S. government guarantees the many tax incentives that the country offers businesspeople and investors. For example, companies that establish or expand export services businesses in Puerto Rico enjoy a 4 percent corporate tax rate, a 100 percent exemption on property taxes and a 100 percent exemption on profit distributions or dividends.
In addition to tax advantages, Puerto Rico’s diverse economy offers lots of opportunities for both entrepreneurs and investors. The island boasts the Caribbean’s largest and busiest airport, benefiting business travelers and exporters. Among the industries where Puerto Rico leads the region are manufacturing, including textiles, clothing, processed foods, pharmaceuticals and electronics. In addition, the service sector is undergoing rapid growth, with a focus on educational and health services, professional and business services, and financial and insurance services.
The Puerto Rican government has plans underway to expand additional industries including film and television, alternative energy and computer science. The Export Services Act seeks to turn the island into a hub of international export services, while the Tourism Development Act promotes the construction of world-class tourism attractions.
Powering its thriving industries is Puerto Rico’s highly skilled workforce, many of whom are bilingual. Still, the island’s manufacturing wages are up to 80 percent lower than those on the U.S. mainland. Under the Jobs Now Act, employers can get incentives including tax credits, salary subsidies and loans for hiring eligible workers.
With so many avenues for business expansion and investment growth, Puerto Rico is one island that has more to offer than just sandy beaches and sea breezes.
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.