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 you business has a long history. Taking the next step, exporting or investing, can be within your reach under the law.
A bet on exports
In order to provide incentives for export of services from the Island, Law 20 was created, the Law to Encourage Export of Services. This law 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 Law 20 receive various levels of tax benefits. The Department of Economic and Business Development, which is in charge of managing the law, has already granted 310 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.
In search of more investment opportunities
At the same time, there is Law Number 22, or the Law for Incentives for Transfer of Individual Investors to Puerto Rico. This law provides incentives for people who have not been residents of Puerto Rico in the last six years 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.