Working and living in the Caribbean is no longer just for dreamers, professional vacation-goers or hospitality-focused businesses. With its attractive tax incentives, highly trained workforce, and resilient infrastructure and community, Puerto Rico is now being touted as the hub for startups to thrive in a collaborative and innovative environment. The island’s bustling city of San Juan and tax incentives, like Acts 20/22, have allowed new companies to save thousands of dollars to use toward expansion and overhead.
With the recently enacted tax laws, businesses in export services and manufacturing are now qualified for a fixed 4% income tax rate and 100% tax exemption on distributions from earnings and profits. This allows these companies to stay competitive in the global marketplace while keeping operational costs low.
In addition, eligible startups can receive 100% exemption on property tax for their first five years of operating along with a 50% tax credit on research and development expenditures. This makes physical expansion to Puerto Rico not only possible but profitable.
With a steady increase of startups and like-minded entrepreneurs, Puerto Rico is on its way to becoming coined the ‘New Silicon Valley.’ A recent Puerto Rican startup, Abartys Health, has seen significant growth in success in just one year of launch, winning the 2017 SXSW Release IT competition. “Their ability to get such exponential traction in such a short amount of time is remarkable,” cites Forbes.
Parallel 18, a grassroots funding program, has helped attract and grow hundreds of startups, like Abartys Health, in Puerto Rico, positioning the island as the hub for entrepreneurial growth. Similarly, Pre18, which is powered by Parallel 18, has helped companies that are still at the beginning stages of establishing their business, pre-accelerate, while generating income and interest in the short term. Both companies harness Puerto Rico’s multicultural society, competitive taxation, and lower cost of living to really leverage the benefits to welcome new talent to the island.
Year-round warm weather, a vibrant culture and convenient geographical location makes “living the Caribbean lifestyle dream” a reality. Puerto Rico boasts events and opportunity to not only improve your personal well-being, but your professional one, through networking with like-minded entrepreneurs and business owners.
What’s more, finding inspiration, living by the beach and investing in a piece of paradise is now more attainable through programs and tax incentives geared toward seeing Puerto Rico-based business owners develop and thrive on the island.
With the sustained growth of startups on the island, comes an increase in working spaces and 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 entrepreneurs 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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