Puerto Rico Incentives

• 4% corporate tax rate on eligible services exported outside Puerto Rico.
• 100% exemption on dividends from these services.
• Ideal for service-based businesses (consulting, finance, marketing, IT, design, etc.).
• Access to U.S. market & legal system.

• 100% tax exemption on dividends.
• 100% tax exemption on interest.
• 100% tax exemption on long-term capital gains accrued after becoming a resident.
• Encourages relocation of high-net-worth individuals to Puerto Rico.

Purpose:

• Consolidates Acts 20, 22, and other tax incentive programs.
• Creates a streamlined framework to attract investment, innovation, and residents.

Benefits:

• Transparent system of tax incentives.
• Expands eligible industries.
• Ensures long-term sustainability of Puerto Rico’s tax incentive program

• Become a bona fide resident of Puerto Rico (physical presence, tax home, closer connection test).
• Apply through the Puerto Rico Department of Economic Development and Commerce (DDEC).
• Annual government compliance fees and charitable contributions required.

• Significant tax savings compared to U.S. mainland.
• Strategic location with U.S. legal protections.
• Vibrant culture, lifestyle, and real estate opportunities.
• Growing communities of entrepreneurs and investors