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Puerto Rico Tax Incentives Act 20/22


PUERTO RICO TAX INCENTIVES

In an attempt to attract new, wealthy residents and growing businesses, Puerto Rico offers tax incentives like no other. Its growing economy and quality real estate properties make it the perfect haven for investors and retirees.

ACT 20 – THE EXPORT SERVICES ACT

Puerto Rico aims to attract service businesses to the island with the Export Services Act (Act 20). It provides tax exemptions and tax credits to eligible businesses, which include those in advertising and public relations, data processing centers, call centers, research and development, art and graphic services, consulting and others. The Act provides for a 100 percent tax exemption on distributions from earnings and profits and a 3 to 4 percent fixed income rate. These rates are good for 20 years with a possible 10-year extension. Other incentives may apply.

ACT 22 – THE INDIVIDUAL INVESTORS ACT

New residents of Puerto Rico may also qualify for certain tax incentives. Bona-fide new residents of the island (who were not bona-fide for the six-year period before January 12, 2012) may be eligible for incentives under the Individual Investors Act (Act 22). These residents enjoy a 100 percent tax exemption on Puerto Rico income taxes on all dividends and interest as well as short-term and long-term capital gains.

To find out more about these and other tax incentives, give me a call today!