Page 112 - Caribbean-Central America Profile 2018

PUERTO RICO

CARIBBEAN-CENTRAL AMERICA PROFILE 2018

Official Name: Commonwealth of Puerto Rico
Capital: San Juan
Nationality: Puerto Rican(s) (U.S. Citizens)
Official Language: Spanish; English
PUERTO RICO
Population (millions): 3.41 (2016 est.)
Size: 3,459 square miles
Currency: U.S. Dollar (USD)
Internet Domain : .pr
International Dialling Code: +1 787
Electricity: 120 volts / 60 cycles

COUNTRY OVERVIEW INVESTMENT INCENTIVES
Puerto Rico offers a comprehensive, all-star set of incentives for the following key sectors:
q Puerto Rico is a self-governing United
States territory with Commonwealth Manufacture
status.
q Located in the northeastern Caribbean, • 4% fixed tax.
east of the Dominican Republic and • 0% to 1% income tax from innovative activities.
west of the Virgin Islands. • Up to 50% tax credit for purchasing local and recycled products.
q Puerto Rico houses the world’s
largest single-dish radio telescope, • Up to $5,000 tax credit for job creation.
spanning almost 20 acres. • Up to 50% tax credit for research and development.
q The capital is San Juan.
• Special rebates for investing in structures, machinery and equipment.
Puerto Rico is an island of opportunities • Up to 50% tax credit for investing in efficient energy use and renewable energy machinery
where any company can establish, relocate and equipment.
or expand their operations while enjoying
the benefits of doing business in a U.S. Agriculture
jurisdiction. Puerto Rico is part of the
US free trade zones and customs system. • 100% exemption on taxes for agricultural equipment.
It is also under the US legal framework • 100% exemption on property taxes (land, buildings, vehicles, etc.).
and intellectual property protection. It has
the protection of the Homeland Security • 100% exemption on municipal taxes.
Act and Puerto Rico’s banking system is • 100% exemption on stamp payments to PR’s Treasury Department and fees to register a
regulated under US laws (FDIC).
property.
Puerto Rico enjoys a highly diversified • 90% exemption on earning contribution from agricultural activity.
economy and has become a formidable
player in high-value added manufacturing • 50% tax credit for investment in eligible agricultural business.
industries that include pharmaceuticals,
electronics, processed foods, clothing, and Export Services
textiles. The service sector is playing an • 4% corporate tax rate, which may be reduced to 3%.
increasingly pivotal role in Puerto Rico’s
economic development contributing • 100% tax exemption on dividends from export services businesses.
significantly to job creation and growth, • Decree of 20 years, renewable for an additional 10 years.
particularly in educational and health
services, professional and business International Financial Entities (IFE)
services, financial and insurance services,
among others. • 4% income tax.
• 0% on dividends or other distributions of profits to non-Puerto Rico residents.
• 100% exemption on municipal taxes.
• 100% exemption on property taxes.

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