What is the advantage of obtaining an EB-5 visa through a Puerto Rico Regional Center?
As a Commonwealth of the U.S., Puerto Rico enjoys fiscal autonomy, which means that it can offer very attractive tax incentives not available on the mainland U.S., with the advantages of being in a U.S. environment.
As a Territory of the US, Puerto Rico uses the US Dollar and is subject to US Federal Court System and Laws, but with valuable tax advantages for individuals and corporations that are not available on the mainland.
*You can read here the enclosed legal opinions by Adsuar Muñiz Goyco Seda & Pérez-Ochoa, P.S.C
The Puerto Rico government has legislated a series of incentives to attract investment, of which EB-5 Visa program participants can also take advantage
Read through and contact us to show you how you, as an EB-5 program participant, can also take advantage of some of these opportunities.
Unique Investment incentives
- Puerto Rico is not a state, and thus, federal taxes do not apply generally to income generated within the commonwealth
- Puerto Rico corporations are treated for federal tax purposes as foreign corporations and are not generally subject to U.S. corporate taxes.
- Individual residents of Puerto Rico are not subject to federal taxes on income derived from Puerto Rico sources
Act 20 – For Export of Services
Puerto Rico has a skilled and competent, bilingual, human capital accessible to companies that want to provide their services from Puerto Rico to the rest of the world. This law seeks to turn Puerto Rico into an international service export center by offering attractive tax benefits to eligible businesses.
- This law seeks to attract new residents to The Island by offering full exemption of Income Taxes, Capital Gains Taxes as well as passive income generated or accumulated once they become bona fide residents of Puerto Rico.
- This incentive is granted for an initial 20 years and is renewable for an additional 10-year term
- For more information click here
Act 22 – For Individual Investors
This law seeks to attract new residents to the Island. It provides full exemption of income taxes on certain passive income, paid or accrued, during the taxable years that the individual is a bona fide resident of Puerto Rico.
- Puerto Rico has a skilled and competent, bilingual, human capital for companies to provide their services from Puerto Rico to the rest of the world.This law seeks to turn Puerto Rico into an international service export center
- Eligible business can enjoy a 4% top tax rate on income related to export of services, as well as tax exemptions on dividends, municipal patents and property taxes
- This incentive is granted for an initial 20 years and is renewable for an additional 10-year term
- For more information click here
Act 273 – International Financial Center
The International Financial Center is a complement to the incentives provided by the Commonwealth of Puerto Rico to stimulate the export of services from The Island. This act offers tax advantages to International Financial Entities(IFEs) established in Puerto Rico to offer traditional banking or financial services outside Puerto Rico. IFEs are under the supervision of the Office of the Commissioner of Financial Institutions of Puerto Rico.
- The International Financial Center is a complement to the incentives provided by the Commonwealth of Puerto Rico to stimulate the export of services from The Island
- Under this act, qualifying International Financial Entitities (IFE) enjoy a 4% top income tax rate, preferential tax rates on dividends to stockholders residing in Puerto Rico, 100% tax exemption on dividends to stockholders residing outside Puerto Rico as well as 100% exemption on municipal and property taxes
- This incentive is granted for an initial 15 year exemption and is renewable for two additional 15 year terms
Act 399 – International Insurance Center
This law established the basis for the International Insurance Center (IIC), which allows insurers and re- insurers a competitive environment to cover risks outside Puerto Rico, with a safe and flexible regulation environment with highly attractive tax incentives.
- Puerto Rico is the ideal point of entry to insurance and re-insurance entities that wish to compete in the insurance market and the Latin America financial market because of its direct access to the United States and other International Markets
- This law established the basis for the International Insurance Center (IIC), which allows insurers and re-insurers a competitive environment to cover risks outside Puerto Rico with a safe and flexible regulation environment with highly attractive tax incentives.
- For more information click here
Act 27 – Film industry incentives
Puerto Rico boasts one of the most reliable and attractive tax incentive programs for the film industry in the Western Hemisphere
- Puerto Rico boasts one of the most reliable and attractive tax incentive programs for the film industry in the western hemisphere
- Besides an ample source of bilingual top talent with experience and technical capability, and a geography that provides access to a number of varied locations, the law provides attractive Production incentives, Infrastructure development incentives and preferred tax rates
- For more information click here
The unique relationship of Puerto Rico with the United States also provides several advantages to individuals and corporations
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Puerto Rico is not a state, and thus, federal taxes do not apply generally to income generated within the Commonwealth.
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Puerto Rico corporations are treated for federal tax purposes as foreign corporations and are not generally subject to U.S. corporate taxes.
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Individual residents of Puerto Rico are not subject to federal taxes on income derived from Puerto Rico sources.
The peace of mind of a U.S. Jurisdiction
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All federal laws apply to Puerto Rico. We share a common currency, common defense and citizenship with the U.S.
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No passports are needed to travel to and from the mainland.
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The U.S. legal framework and democratic system of government provide a low security risk for investors.
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Puerto Rico offers investors the security offered by federal laws and regulations, as well as compliance with international regulations that demand transparency.
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In addition, Puerto Rico has very attractive incentives for manufacturing operations. Products manufactured in Puerto Rico carry the “Made in USA” label.
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As it has always done in the past, Puerto Rico is expected to continue to qualify as a Targeted Employment Area under the new regulations that are effective from March 15, 2022. Therefore, a foreign investor should be able to qualify for the EB-5 visa with the lower investment amount of $800,000. This is no longer the case in many other areas of the United States.
A modern country with a high standard of living
Puerto Rico has a sophisticated business infrastructure that can accommodate the needs of both small and medium enterprises, as well as multinational corporations
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Puerto Rico is home to about 30 International Banking Entities with assets of over $40 billion. IBEs must be created with at least $5 million in capital and request a license from the Office of Financial Institutions of Puerto Rico (www.cif.gov.pr).
- The commercial banks in Puerto Rico have assets of $60 billion
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The Island has good air connections and infrastructure, as well as the kind of ample availability of specialized financial resources to manage large funds.
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With a GDP of approximately $64.84 billion, and a 3.8 million population, the Island has the highest GDP per capita of Latin America.
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For the past 50 years it has been a manufacturing powerhouse, producing many of the top drugs in the U.S, as well as medical devices.
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It is also home to one of the most sophisticated financial markets in the hemisphere, including a vibrant investment company industry of $8 billion as well as financial firms exceeding $27.5 billion in clients’ assets.
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State-of-the-art telecommunications infrastructure.
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Ample U.S. style road system, modern and reliable utilities, as well as world-class commercial ports.
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Easy access by air to most major U.S. cities.
Puerto Rico is also a great place to live
Besides the legendary Caribbean beaches and year-long summer temperatures, here you will find
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Top-notch high schools with a long tradition of excellence and placement in top ranked U.S. universities.
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A housing market with emphasis on high-end living units that feature architectural design of the highest order.
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Fine dining with a wide array of venues offering the best the world has to offer as well as the unique and absolutely delicious Puerto Rican nouvelle cuisine.
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A vibrant arts scene with museums, theaters and many performing arts venues all over the Island.
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A shopping experience that includes the largest mall in the Caribbean and most of the US retail chains with presence all across the Island.
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World-class hotels and golf courses and some of the most beautiful beaches in the world.