PUERTO RICO TAX INCENTIVES
Interested in doing business in Puerto Rico? This island is an investors dream! Learn about Puerto Rico incentive code - Act 60 and you will want to become a resident of this paradise right away. The tax incentive code Act 60 was created to increase foreign investments and economic development in the island. It has helped Puerto Rico turn around the economic momentum in the last few years. This has led to a growth in demand and prices of real estate properties. The incentive code consolidates certain tax incentives and benefits including Act 20 and Act 22.
ACT 22- INDIVIDUAL INVESTORS ACT
Eligible individuals are provided 100% tax exemption on passive income. In addition, under Act 22, individuals benefit from the 0% tax rate on Puerto Rico-sourced dividends, interest, and certain capital gains. To qualify, investors must become Puerto Rico residents and live on the island at least 183 days of the year. Act 22 has brought to Puerto Rico high net worth individuals that have enjoyed the benefit of minimal taxation on investments.
ACT 20- EXPORT SERVICES
Act 20 provides tax incentives to various companies that move to Puerto Rico and export their services. Under Act 20, qualifying businesses are taxed a flat 4% as opposed to the 39% U.S. businesses are taxed. In addition, eligible companies may enjoy 100% exemption on property taxes as well as tax exemptions on dividends, interest and capital gains. Many companies have moved to Puerto Rico under Act 20 in order to lower their taxes on exported services. It has also allowed qualifying local companies to lower their effective tax rates, therefore, having more disposable income driving real estate demand higher.
Ready to Make the Move?
Living in paradise while saving money thanks to these tax incentives is a dream come true for many. Puerto Rico has additional tax incentives for other business endeavors. If you would like to take advantage of all the opportunities that this Island has to offer, we are here to help. Our team works hard to provide our clients with useful resources that will make the buying decision a more informed and pleasant experience. We are experts when it comes to negotiating, which helps us get our clients the best deals possible.
Take a few moments to look through our listings and get in touch with us. We look forward to helping you navigate through the real estate landscape and fit the right property for you.