Tax Incentives

Are you considering a strategic move to a place that not only offers a tropical paradise but also significant tax incentives for individuals and businesses alike? Look no further than Puerto Rico. This beautiful island territory has become a haven for those seeking to optimize their financial prospects, and it's all thanks to a comprehensive set of tax incentives outlined in Act 60-2019, known as the "Incentives Code."

For individual investors, Puerto Rico presents an enticing opportunity. The Incentives Code grants an exemption from Puerto Rico income taxes on interest, dividends, and capital gains once you become a bona fide resident of the island. This initiative is designed to encourage local investments in real estate, services, consumer products, and capital injections into the banking sector, bolstering Puerto Rico's economy.

To support healthcare professionals and address shortages in specialized medical services, the Incentives Code offers tax benefits to qualified physicians who practice medicine in underserved areas. These dedicated healthcare providers can enjoy tax advantages while contributing to the well-being of Puerto Rico's residents.

Puerto Rico recognizes the value of specialized knowledge and aims to attract professionals who possess it. Through the Incentives Code, individuals with essential skills can benefit from salary exemptions up to $100,000, promoting the growth of exempt businesses in the region.

The Incentives Code strives to position Puerto Rico as a global hub for exporting services. Local service providers are encouraged to expand their offerings to international markets, fostering the development of new businesses and attracting service providers to the island.

Act 2016-2011 extends various incentives to residents and non-residents of Puerto Rico interested in buying or selling eligible real property. These incentives, applicable until December 31, 2020, create favorable conditions for real estate transactions on the island.

Puerto Rico welcomes businesses engaged in international financial services. To access tax benefits, companies must become international financial entities (IFEs). This process involves obtaining permits and licenses from relevant authorities. IFEs can be entities incorporated in Puerto Rico, the United States, or other countries.

International insurers based in Puerto Rico can offer direct insurance or reinsurance services outside of the island. This opportunity extends to reinsurers as well. Additionally, international insurer holding companies can invest in these entities, attracting foreign insurers to establish branches in Puerto Rico.

Puerto Rico is keen on attracting investment in qualified opportunity zones. The Incentives Code provides tax incentives to eligible businesses that operate exclusively within these zones, furthering economic growth and development.

Finally, for those seeking U.S. citizenship and a green card, Puerto Rico offers the EB-5 Visa Investor Program. This federal initiative allows foreign investors to secure a Green Card while providing capital for projects and generating fees for professionals.

Puerto Rico's tax incentives are not just about financial gain; they are a commitment to fostering growth, innovation, and development on this beautiful island. Whether you're an individual investor, a healthcare professional, or a business owner, Puerto Rico has something to offer. Join us in paradise and seize the opportunities that await you!