Exporting services or investing in Puerto Rico is now more viable than ever. It doesn’t matter if you are a new entrepreneur or if your business has a long history. Taking the next step, exporting or investing, can be within your reach under the law.
A bet on exports
The Incentives Code approved under Act 60 of 2019 encourages export of services from the Island, substituting what was Act 20 of 2012, the Law to Encourage Export of Services. The Code of Incentives can be used by local companies and foreign companies established in Puerto Rico that plan to export services, explained lawyer Francisco Pericás, Executive Vice President and Director of our Corporate Banking Division.
There is a list of services covered by the law, but it is not exclusive. In other words, even if your business offers a service that is not expressly included in the law, it is very likely that you can take advantage of the benefits.
Businesses that are covered by former Act 20, now Act 60, receive various levels of tax benefits. On December 31, 2021, the Department of Economic and Business Development, which is in charge of managing the law, had granted 2,723 decrees under the law.
“The most developed economies have a strong services component in their national product. The goal here is that our economy will take on the characteristics of a more developed economy,” said Pericás.
The Code of Incentives also maintains the benefits generally provided by the former Law Number 22 of 2012, or the Law for Incentives for Transfer of Individual Investors to Puerto Rico. Therefore, promoting the people who have not been residents of Puerto Rico from 2006 through 2012 to move to the island and contribute to the economy through investments, as well as the acquisition of goods, products, services, housing and more.
Those who take advantage of this law get tax benefits, but to do this, they must make their residence on the island.
“This has been a marvelous tool for promoting our Island. We are gaining access to people who possibly had not considered us as an alternative for business, and now they are coming,” said the lawyer.
To encourage adoption of these legal incentives, we have developed specialized units within the business and individual divisions to attend to both the export and investment markets.
Make your business and capital grow by using the right tools for prosperous economic development.
This article is for informational purposes only and does not constitute an endorsement or guarantee of accuracy or applicability for any particular purpose. Neither Popular nor any of its affiliates, subsidiaries, or related companies is or will be responsible for any special, direct, or indirect harm stemming from the information contained in this article. Should you require further information or guidance on the subject of this article, you should always seek the advice of the competent professional of your choice.