So you’re considering making a business move to Puerto Rico but still on the fence? Moving to Puerto Rico is surely a decision that requires a lot of thought. There’s more to doing business in Puerto Rico than Act 20 and Act 22 tax incentives. Here are some of the top benefits about living and doing business in Puerto Rico:
1: Keep your Stars and your Stripes – It’s a US territory
Puerto Rico being full-fledged US soil does bring some unique advantages. For example:
- US citizens don’t need a passport to travel to PR. On the flipside, Puerto Rican coworkers or business partners are US citizens and can travel freely from their island to the U.S. mainland without red-tape.
- Obtaining work-visas for yourself and your staff can often complicated, time-consuming, and costly when discussing moving yourself or your business overseas. Not the case for PR. US citizens do not need work permits to work in Puerto Rico.
- The U.S. dollar is the legal tender and so there are no exchange controls. Capital can be moved freely in and out of the country. With an economy based on the US dollar, Puerto Rico offers monetary stability.
- Access to US benefits such as social security and Medicare.
- US banking regulations apply, as well as a similar legal framework, including intellectual property protection.
2: Significant Tax Benefits
Hold on to your seats, because this is where the real allure starts.
A few years ago the government of Puerto Rico introduced Act 20, Act 22 and Act 273 (the Export Services Act, the Individual Investors Act and the International Financial Regulatory Act, respectively).
All offer attractive tax incentives aiming to lure investors, businesses and high-earning individuals to move to the island to do business.
The fixed corporate income tax rate and individual tax rates set under these new policies allow for significantly lower rates than in mainland USA. For example, service industry businesses such as financial services, consulting services and call centers incur the startling low corporate tax rate of 4%.
In fact, the tax you pay as a business or resident in Puerto Rico is in many instances significantly lower than any other US jurisdiction
What makes business in Puerto Rico different than other so-called “tax havens” such as the Cayman Islands is the fact that it is still considered US soil. Keep in mind that typically, even when you move overseas, you still owe Uncle Sam hefty US exit taxes and must hand over your US citizenship.
Move to Puerto Rico, keep your stars and your stripes! And a good portion of your money too, as you’d be privy to only the lower taxes as charged by the Puerto Rican government.
3: Location, Location, Location
If you are considering relocating for business, chances are you considered various regions of the world. While there is much good to be said about Asia and Europe, doing business in the Caribbean does have a competitive edge geographically.
Daily non-stop flights leave San Juan airport every hour. You can be in Miami in 2.5 hours, New York in 4 hours and Houston in 5 hours.
You don’t need a passport to fly and you don’t need to go through customs.
The price tags of flights are equally comparable to bi-coastal domestic flights. Similarly, cargo can arrive from US ports within 5 business days.
While we are talking about location, let us keep in mind that Puerto Rico is strategically located between North America and South America and has long been the link between the United States and the Latin America markets. No hablas espanol? No problem!
Puerto Rico’s 3.8 million population is educated, friendly and mostly bilingual, making PR a Caribbean market perfectly suited for your business needs.
4: It’s like the US, but it’s not
Puerto Rico’s close ties to the US give it the benefits of infrastructure many other islands – and countries – don’t have.
- Significant infrastructure such as highways, schools, hospitals, public services and financial services make Puerto Rico far more attractive than other Caribbean alternatives.
- High speed internet and fiber optic cable services.
- The largest convention center in Caribbean.
- A World Leader in Engineering and Life Science degrees with large numbers of tech-trained graduates.
- Lower salaries for highly trained employees.
- State-of-the art medical facilities with medical and dental costs 40% to 60% lower than in the US. 69 of which are joint commission accredited and follow US federal regulations.
On top of all the benefits of doing business in Puerto Rico: You will be relocating to a Caribbean paradise.
With year-round temperatures steadily between 74F and 81F, you will soon fall in love with the Caribbean sun and sea-breezes.
Luxury real estate deals can be found all over the island, and you have a lot to choose from.
From country club living in Dorado, to the city life in Condado’s beachfront condominiums to family-friendly resort living in Palmas Del Mar; Puerto Rico has something for everyone.
Puerto Rico’s beaches are consistently ranked in the top 10 worldwide. Plus, you are within sailing distance to coveted vacation spots like Vieques, Culebra and the US and British Virgin Islands…(read more at PR Business Link)