Full service consulting firm that specializes in Regulatory Compliance, Government Affairs and Business CONTACT US NOW FOR

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Puerto Rico currently offers a COMPREHENSIVE INCENTIVES PACKAGE that is

TAX INCENTIVES
the pillar of the islands investment promoting strategy. It is a set of incentives and benefits
granted by the government as tools for the development of Export Services, Individual
Investors, International Financial Entities, International Insurers, and Medical Professionals.

ACT 20 ACT 22 ACT 273 ACT 399 ACT 14 ACT 73

EXPORT INDIVIDUAL INTERNATIONAL INTERNATIONAL MEDICAL MANUFACTURE
SERVICES INVESTORS FINANCIAL INSURERS PROFESSIONALS
ENTITIES

20 ACT 20 EXPORT SERVICES

22
ACT 22 INDIVIDUAL INVESTORS
Offers nonresident individuals 100% tax exemptions
Applies to any entity with a bona fide establishment in Puerto Rico that is engaged in an eligible service
for export. Eligible services include investment banking, financial services, R&D, advertising,
consulting, IT development, call centers, professional services, centralized management services and
on all interest, all dividends, and all hospitals and laboratories.
long-term capital gains to entice nonresidents to 4% fixed income tax rate on income related to the export of services
INCENTIVES:

relocate to Puerto Rico.

100% tax exemption on income tax rate from dividends or profit distributions
0% tax on dividend and interest income for new
INCENTIVES:

90% tax exemption on personal and real property taxes

Puerto Rico residents
60% tax exemption on municipal taxes
0% tax on short-and-long term capital gains for
20 year tax decree renewable for an additional 10-year period
new Puerto Rico residents

273
0% federal taxes on Puerto Rico source income
Tax savings on your investment ACT 273 INTERNATIONAL FINANCIAL ENTITIES
portfolio returns
Provide tax incentives for new banking and financial activity in Puerto Rico that is provided for
clients outside of Puerto Rico.

399 4% Corporate flat tax rate on net income

INCENTIVES:

ACT 399 INTERNATIONAL INSURERS

0%-6% Dividend tax rate to Puerto Rico resident shareholders
Establishes the legal basis for the International Insurance 100% Dividend tax exemption to non-resident shareholders
Center of Puerto Rico, through which insurers and reinsurers, 100% Exemption on municipal taxes
or business entities organized as such, can export and import 100% Exemption on Real and personal property taxes
insurance and services related to the insurance industry.
0%-4% Corporate tax rate
14
INCENTIVES:

ACT 14 MEDICAL PROFESSIONALS

100% Exemption on Puerto Rico dividends
and capital gains taxes Offers tax incentives to qualified medical professionals to attract the setup of new medical practices.
100% Exemption on real and personal
INCENTIVES:

0%-4% Fixed income tax rate

property taxes
100% Exemption from Puerto Rico taxes on dividends and capital gains
100% Exemption on municipal taxes
100% Exemption on real and personal property

73
100% Exemption on municipal taxes
ACT 73 MANUFACTURE
Economic Development Incentives 50% tax credit with multiple uses
INCENTIVES:

Act provides tax incentives for
companies that establish and
expand their island operations as
well as tax credits for creating
jobs and investing in research
and development.
0% - 1% pioneer tax rate Pre-qualified free trade zones throughout Puerto Rico
Income tax exemption on property and inventory
4% income tax rate /12% withholding on royalty payments
100% exemption on distributions for Puerto Rico residents 4% income tax rate on the provision of services to entities outside of Puerto Rico
Excise tax on sales to affiliates 100% exemption for earnings distributions for Puerto Rico residents
4% income tax rate 90% property tax exemption