©2019 by Essèntium Group | Privacy Policy

CONTACT US

Caparra Office Center

22 González Giusti Avenue, Suite 222
Guaynabo, Puerto Rico 00968

  • Black LinkedIn Icon
  • Black Twitter Icon

Carrer Verdaguer 36-38, Local C

08397 Pineda de Mar (Barcelona)

Spain

PUERTO RICO

BARCELONA

PUERTO RICO TAX INCENTIVES

Puerto Rico currently offers a comprehensive incentives package that is the pillar of the island's investment promoting strategy. The set of incentives and benefits granted by the government is a monetary relief and a tool for the development of Export Services, Individual Investors, International Financial Entities, International Insurers, and Medical Professionals.

Essèntium Group, as a Certified Incentives Promoter, will assist you to choose the incentive that best fits your needs and guide you throughout the application process.

ACT 20

This Act applies to any entity with a bona fide establishment in Puerto Rico that is engaged in an eligible service for export. Eligible services include but are not limited to investment banking and other financial services, research and development, advertising and public relations, consulting, electronic programming development, call centers, professional services, and centralized management services.

 

An eligible service must also qualify as an export service. An eligible service done by a foreign entity or non-resident individual that does not relate to business activities within Puerto Rico qualifies as an export service.

Incentives for Export Services:

​​

  • 4% fixed income tax rate on income related to the export of services

  • 100% tax exemption on income tax rate from dividends or profit distributions

  • 90% tax exemption on personal and real property taxes

  • 60% tax exemption on municipal license taxes

  • 20-year tax decree, renewable for an additional 10-year period

Qualifying Services:

​​

  • Research & Development (R&D)

  • Knowledge services

  • Shared services centers

  • Legal, tax, accounting, and other professional services

  • Consulting, advertising and public relations

  • Data processing and software development

  • Storage and distribution centers

  • Educational and training services

  • Hospitals and laboratories

  • Financial services

  • Call centers

ACT 22

Act 22 is designed to primarily attract to Puerto Rico high net worth individuals, empty nesters, retirees who currently relocate to other States and investors from U.S. and other countries. It offers nonresident individuals 100% tax exemptions on all interest, all dividends, and all long-term capital gains to entice nonresidents to relocate in Puerto Rico.

This tax incentive is available to new residents who have not lived in Puerto Rico over the 15 years preceding the effective date of Act 22 (January 16th, 1997 to January 16th, 2012).

Incentives for Individual Investors:

​​

  • 0% tax on dividend and interest income for new Puerto Rico residents

  • 0% tax on short-and-long term capital gains for new Puerto Rico residents

  • 0% federal taxes on Puerto Rico source income

  • Incredible tax savings on your investment portfolio returns

  • Summer all year long and miles of paradise beaches

Tax Exemption Decree:

​​

  • To enjoy the benefits granted under the Individual Investors Act, the new resident must apply for and obtain a tax exemption decree which guarantees the incentives until 2036.

ACT 273

The main purpose of Act 273 is to make Puerto Rico an international banking and financial center by providing tax incentives for new banking and financial activity in Puerto Rico that are provided for clients outside of Puerto Rico.

Incentives for IFE's:

​​

  • 4%  Corporate flat income tax rate on net income

  • 0%-6% Dividend tax rate to shareholders that are Puerto Rico residents

  • 100% Dividend tax exemption to non-resident shareholders

  • 100% Exemption on municipal taxes

  • 100% Exemption on property taxes on all real and personal property

ACT 399

Act 399, known as the International Insurers and Reinsurers Act of Puerto Rico, establishes the legal basis for the International Insurance Center of Puerto Rico, through which insurers and reinsurers, or business entities organized as such, can export and import insurance and services related to the insurance industry.

Incentives for IIR's:

​​

  • 0%-4% Corporate tax rate

  • 100% Exemption from Puerto Rico taxes on dividends and capital gains

  • 100% Exemption on properties real and personal

  • 100% Exemption on municipal taxes

ACT 14

The purpose of Act 14 is to offers a tax incentive to the qualified medical professional in Puerto Rico and to attract the set up of new medical practices. The eligibility for this incentive is based on professional eligibility, residency, community service and timing of request.

Incentives for Medical Professionals:

​​​

  • 4% fixed income tax rate on income generated by offering Professional Medical Services

  • 100% Exemption on up to $250,000 received from dividends per year

  • Up to 25% of income after taxes can be used as contributions for individual retirement plans (Keogh) or up to 25% of their salary in case of corporate retirement plans 

  • Qualified medical professional can request a 15 year extension

Qualified Medical Professional:

​​​

  • Medical Doctors

  • Odontology Specialists

  • Resident studying in an accredited program in Puerto Rico

  • A non-resident may apply and will be granted 120 days to move practice to Puerto Rico and become a resident

  • Medical Professional must provide at least 180 hours per year of community services

  • Must provide professional medical services on a full-time basis