Governor Ricardo Rosselló of Puerto Rico, with the Puerto Rico Department of Economic Development and Commerce (DDEC), announced that Puerto Rico is “Open for Business”. The announcement coincides with the Puerto Rican administration implementing aggressive tax benefits and innovative initiatives as the island rebuilds.
Further promoting startup growth and investment into Puerto Rico are four Acts to bolster Puerto Rico’s business and entrepreneurship ecosystem, including:
- Act 20, providing 90% exemption on personal property taxes to certain kinds of businesses, 100% tax exemption on distributions for profits and earnings, and provides for activities and key services a 4% income tax rate.
- Act 22, offering full exemption on income taxes for all capital gains, dividends, and interest for residents on income from Puerto Rico.
- Act 273, giving tax exemptions to “International Financial Entities”, businesses that apply and obtain a decree.
- Act 399, providing reinsurers with a competitive environment for covering risks in and out of Puerto Rico, as well as exemptions from dividends, municipal property taxes, premium taxes, and others.
Coinciding with the announcement is the launch of not-for-profit Invest Puerto Rico, offering grants, marketing, tax incentives, and other tools to grow the state economy and encourage business investment. By working with both the private sector and the DDEC, Invest Puerto Rico further strengthens the value proposition Puerto Rico offers.
“Puerto Rico’s strongest economic assets – our people, our resiliency, our location and our incentives are all intact – and we now have the opportunity to add to these assets with new, state-of-the-art systems to power the next phase of our story,” said Manuel Laboy, Puerto Rican Secretary of the Department of Economic Development and Commerce. “Combined with the protection of the U.S. jurisdiction, we recently updated our incentive laws to make it even easier for potential investors to take advantage of our aggressive local tax benefits.”
