By David HammondUpdate October 12, 2017 -due to Hurricane Maria, the Puerto Rico Investment Summit is rescheduled for February 12 and 13, 2018.
Puerto Rico is a natural paradise with palm trees and long sand beaches on the Caribbean Sea.
Unfortunately, Puerto Rico’s economy is in dire shape.
In order to recover, the US territory needs an infusion of investment and talent.
In 2012, Puerto Rico started offering a range of economic incentives to attract targeted industries, capital, and expertise.
Targeted industries include manufacturing, tourism, construction, telecoms, filmmaking, banking, financial services, and export services.
Incentives for export services
One of the most popular incentives is the Export Service Act (Act 20 of 2012). It provides tax incentives to qualifying export service businesses including a flat 4% income tax.
Among the list of qualifying services, you'll find software development, consulting, professional services, management, and graphic arts.
To qualify for Act 20 incentives, a business must only provide services to customers outside of Puerto Rico.
Incentives for individual investors
In addition to targeted businesses, Puerto Rico seeks to attract individual investors with the Individual Investor Act (Act 22 of 2012).
This Act provides new residents to Puerto Rico with a 100% tax exemption on passive income (dividends, interest, and capital gains) derived from Puerto Rico income sources.
(Residents of Puerto Rico are US citizens and may enter the US freely, but are not subject to US federal income taxes on Puerto Rico source income.)
The Act is intended to attract retirees dependent on investment income as well as professional investors.
Page with links to PDF fact sheets on Act 20 and Act 22
An efficient way to learn the details of Puerto Rico's tax incentives
If you’re interested in checking out Puerto Rico and learning how a given tax incentive applies to your situation, you may be interested in an upcoming event.
It’s the Puerto Rico Investment Summit scheduled for February 12 and 13, 2018.
|Former Governor Luis G. Fortuño|
- Luis G. Fortuño, the former governor of Puerto Rico and creator of Act's 20 and 22.
- A lineup of attorneys and tax specialists.
- People who’ve relocated to Puerto Rico to take advantage of the country’s tax incentives.
The Monday morning session provides basic information most anyone will want to know about, including the technical and legal details of Acts 20 and 22. Monday afternoon sessions will be more specialized.
The Tuesday morning sessions cover several aspects of doing business in Puerto Rico as well as immigration and visa options. After that will be time for open questions to lawyers, CPAs, and investors.
“It is a complete program—with learning, great networking opportunities, and interactive sessions,” reports Brenda González, the president of Adworks, the event’s organizer.
2017 would have marked the fifth Puerto Rico Investment Summit. And the people at Adworks continually tweak and enhance the conference based on attendee feedback.
For inquiries, write Brenda González at email@example.com