Wondering About Puerto Rico Small Business Incentives?
Have you heard about the wonderful tax incentives Puerto Rico offers but have questions? We’ll tell you everything you need to know about Puerto Rico Act 22 and Act 20.
Have you ever dreamed about living in a tropical paradise? How about living in a tropical paradise and getting to keep more of your hard-earned money? How does that sound?
The beautiful island of Puerto Rico not only boasts glorious year-round weather, fantastic amenities and a rich and diverse history, it also offers its residents some pretty amazing tax incentives. These incentives were set up by the Puerto Rican government to attract more investors and businesses to the island.
Here’s what you need to know:
Act 20 Puerto Rico
Also known as The Export Services Act, Act 20 provides tax incentives to certain companies that move to Puerto Rico to export their services. Under Act 20, eligible businesses are taxed a small flat 4% tax (as opposed to the 39% in the United States). In edition, these companies may also enjoy 100% exemption on property taxes as well as tax exemptions on dividends, interest and capital gains.
To qualify for Act 20, busines owners will need to reside in Puerto Rico for 183 days out of the year.
Puerto Rico Act 22
Also called the Individual Investors Act, Act 22 allows eligible people to claim a personal tax rate of 0%. That’s hard to beat! In addition, under Act 22, individuals enjoy 100% tax exemption on Puerto Rico-sourced dividends, interest, and certain capital gains.
To qualify, you must become a resident of the island and live here at least 183 days out of the year.
Act 73 Puerto Rico
If you are a business owner, you know that much time and money can go toward research and development. Well, imagine being able to almost completely write off your R&D expenses while at the same time getting tax breaks for creating jobs and purchasing materials. In addition, you then get to sell the products you develop at an extremely low tax rate.
These are just some of the highlights of these incredible tax incentives. If you have any other questions about these incentives, don’t hesitate to get in touch with us.
We’re in Your Corner
We don’t just help people buy and sell properties; we help you live your best life. If you have been thinking about making the move to paradise, we’re in your corner and can guide you through every aspect of your journey. From finding your dream home and possible financing, to understanding exactly how Act 20, 22 and 73 can help your life and business thrive, we’ll be here every step of the way.
Take a few moments to look through our listings, then get in touch with us to schedule some viewings.
Have any questions? Maybe you’re wondering about how to incorporate in Puerto Rico or about other Puerto Rico economic development incentives. Just reach out to us and we will be happy to answer any questions you may have. We look forward to helping you move to paradise and keep more of your money in your pocket!