3 Tax Incentives to Invest in Puerto Rico
Did you know Puerto Rico has become an excellent destination for tax saving? That's right. As you read it, this is one of the reasons why people see Puerto Rico as a good place to invest. Also, it's important to know that the Puerto Rico government has attractive tax incentives, for example, this island has a 4% corporate tax rate. If you are thinking of investing, you are in the correct place, in iBroker Listings we are here to show you the best opportunities to invest in Puerto Rico. Are you ready to read about it? Let’s start
Benefits to Invest in Puerto Rico
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In the last year, Puerto Rico created different tax incentives to improve the island's economy, which is why this beautiful island has become attractive to some investors, it is worth mentioning that Puerto Rico has a 60% exemption on municipal taxes and also, we have a list of credits an exemptions to specific industries like the film industry, manufacturing industry, capital giants, etc. This is why we will show you the 3 tax incentives you could know if you want to invest in this beautiful island. Are you ready? Let’s continue
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Law 27 Tax incentives:
this tax incentive is focused on the film industry and following the 27 law, this industry can reduce production costs and for this reason, you can enjoy different benefits, for example, a fixed income tax rate of 4%, tax credit of 100% on dividend distributions, a production tax credit of 20% overall payments to non-residents, an infrastructure tax credit of 25% on development cost, 100% exemption on municipal and construction taxes, 90% exemption on real estate taxes and 20% on real estate taxes. - Law 60 Tax incentives:
The 60 law is a tax incentive package for people and enterprises who have high purchasing power. Still, the principal objective of this law is to promote investment and to achieve this objective, the investors have multiple benefits in tax incentives. It is worth noting that this law was created for natural persons and enterprises, and works as allowed:
- Enterprises: eligible businesses with income from customers outside Puerto Rico can enjoy benefits: a 4% corporate tax rate, a 75% exemption from state and local property taxes, and a tax exemption equal to 100% of all distributions of profits and earnings. Please don’t forget that the product offered by the enterprise must be manufactured on Puerto Rican soil.
- Natural persons: if you are a person who resides in Puerto Rico and you generate tax liabilities, you don’t have to pay federal taxes or state taxes. It’s important to keep in mind that Puerto Rican residents don’t have to pay taxes in the U.S.
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Law 73 Tax incentives:
this tax is focused on the manufacturing industry because is important to control the cost, so for this reason the 73 law was created. But what does this law consist of? It's very simple, the principal objective of this law is to save money on taxes, let’s review some of the benefits offered by this law:
- Tax credit up to 50% on purchases of locally manufactured or recycled products
- 50% tax credit in research and development activities
- 4% income tax for industrial development
- 25% tax credit on purchases of manufactured products in Puerto Rico.
It’s important to clarify that this tax incentive benefits all food processing companies and manufacturing companies.
Why you should real estate investing in Puerto Rico?
The answer is easy, invest in iBrokers Listings is a synonym to invest in Puerto Rico. If you are an investor and the only thing you want is to invest, Puerto Rico is the best place to do that. Puerto Rico offers many tax incentives and you can take advantage of it. Have you ever thought about investing in Puerto Rico in real estate? If your answer is ‘yes’ please contact us and get more information. What are you waiting for?
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