In a time of fiscal reorder and expansion, the Puerto Rico government has deployed unique tax incentives to attract U.S. businesses to the island. The potential for additional profit margin and exclusive benefits has already garnered the affection of major enterprises, specifically those backed by owners looking to live, operate and eventually retire in a promising socio-economic climate without having to nullify their American citizenship.
A High Taxation Hiatus
Puerto Rico’s booming financial district, luxury real estate and new tax laws have swiftly positioned the island as a highly sought-after destination for seasoned professionals and investors alike.
Act 20, also known as the “Export Services Act,” offers 100% tax exemption on distributions from earnings and profits, up to 100% exemption for property taxes during the first five years of operations, and a 4% flat income tax rate on export services income (sourced outside of Puerto Rico). When compared to the average 50-60% income tax rate for business owners residing and operating out of major cities, it is easy to see why Puerto Rico has become a desired haven for companies looking to stay competitive and profitable.
Act 22, the “Individual Investors Act,” also offers high net worth investors a unique opportunity to reside and/or operate out of Puerto Rico without having to pay 15-20% on dividends like that on the mainland. Instead, investors receive 100% tax exemption on their income taxes, interest, dividends and long-term capital gains.
Thriving into Retirement
In addition to the alluring tax benefits, Puerto Rico’s quality of life, low cost of living, excellent healthcare, tropical weather, stunning beaches and thriving food and arts scene offers business owners a picture-perfect trajectory toward retirement.
Punctuated by breathtaking beachfront properties and luxury real estate, the island is home to some of the world’s best golf courses, state of the art tennis courts, marinas, beaches, rainforests, and nature trails. And, because Puerto Rico is part of the U.S. territory, those looking to make the move to the island can expect a vibrant bilingual community with U.S. currency, making the transition equal parts exciting and easy.
Going the “Golden Mile”
With the continued influx of new business cropping up across Puerto Rico, so have new office buildings. In the heart of Hato Rey, the flourishing financial district known as the “Golden Mile” has quickly become a highly sought after real estate mecca for investors. Here, American International Plaza (a sixteen story, 326,275 rentable sq. ft. office tower) and its sister property, 270 Plaza (a twenty story, 213,543 rentable sq. ft. office tower) are currently offering some of the most attractive leasing options for big corporations and small companies alike.
Both state-of-the-art towers boast turn-key office space, concierge oriented service, best-in-class fiber, 24-hour security with controlled access, 100% backup power and water, Energy Star certification and flexible floor planning. What’s more, American International Plaza and 270 Plaza have been deemed the “best U.S. Standard Class A buildings in Puerto Rico” for Act 20/22 investors and businesses.
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