As a territory of the United States, Puerto Rico businesses and citizens have all the legal rights afforded by the Constitution whilst having several unique advantages including operating within an autonomous tax jurisdiction.

To incentivize economic development within the Island, the Government of Puerto Rico has enacted tax laws and economic funding programs to reduce taxes, subsidize operations, and promote investment.

In 2019, Puerto Rico’s incentives were consolidated under Act No. 60-2019, as amended, ("Act 60") providing attractive incentives for businesses performing the following activities:

• Manufacturing activities include the creation of tangible consumer products, pharmaceuticals, or software, amongst many others.

• Development of hospitality projects or activities to bolster the tourism sector.

• Green energy and infrastructure development.

• Export of services including professional services, data and call centers, and any services exported to markets outside of Puerto Rico.

• International financing activities.

• Agricultural and livestock activities.

• Creative industry activities for film projects and studio operations.

• Individual investor.

• Difficult Recruitment Professional.

• Principal Investigators and Scientists.

Key Incentive Highlights:

• 50% reimbursement on R & D expenses (via monetizable tax credits)

• 30% reimbursement on investments into hospitality or tourism projects (via monetizable tax credits).

• 20% to 50% cash grants on equipment, infrastructure, & job creation.

• 4% flat corporate tax (1.0% for novel industries).

• 0% rate on dividend distributions

• 75% property tax exemption

• 75% construction tax exemption

• 50% municipal license tax exemption

• 50% exemption on other municipal taxes

In Latin America & the Caribbean, Puerto Rico is 1st in rates of higher education and 2nd in rates of digital skills amongst the population. 60% of university graduates hold a STEM degree (6x more than the highest states) creating a talent pool of over 25.6K STEM candidates.

In addition to having a bilingual workforce and large talent pool of graduates, the Island offers additional benefits to employees and employers. The cost to employ talented individuals in technical fields is on average 30.0% to 40.0% lower than that of the mainland U.S.

Post-Hurricane Maria, billions of dollars have been allocated and invested into revitalizing the infrastructure of Puerto Rico solidifying the Island’s position as the leading business hub with easy market access into the mainland U.S., Caribbean, Central & South America, and Europe.

As a territory of the United States, the products manufactured in Puerto Rico can be certified as ‘Made in the US’.

Puerto Rico possesses access to attractive Foreign Trade Zones creating additional benefits as an international waypoint:

• Deferred U.S. duty payment

• Deferred Puerto Rico excise tax payments

• No duties on returned foreign origin products

• On spare parts, no duty payment until used

Puerto Rico’s Land Authority (PRIDCO), as the largest owner of real estate assets on the Island, offers attractive below-market long-term lease opportunities for new operations or existing companies looking to expand their presence. Additionally, investments into PRIDCO assets for leasehold improvements can qualify for additional incentives including cash grants and tax credits.