Acts 20 & 22

Act 20 of 2012

On January 17, 2012, the Government of Puerto Rico approved Act 20 aimed at attracting foreign investment into Puerto Rico by providing a wide range of tax incentives. Some of these incentives are the following:

  • 4% Income tax rate on export service income (could be lower on certain cases)
  • 100% Exemption on dividends
  • 60% Exemption on Municipal License Taxes
  • 90% Exemption on property taxes on certain instances
  • Available for 20 years. Can be extended 10 additional years for a total of 30 years of tax exemption

Act 22 of 2012

Act 22 was also approved on January 17 of 2012 to attract foreign investors to Puerto Rico. The main incentives under this act are:

  • 100% Exemption on interest and dividends from Puerto Rico sources
  • 100% Exemption on long-term and short-term capital gains generated after becoming a PR resident

Want to learn more about these incentives? Please review the links below and reach out to us at rafa@clearpath.pro

http://businessinpuertorico.com/documents/ACT-20-PG.pdf

http://www.businessinpuertorico.com/en/profit/individual-investors

https://www.bloomberg.com/news/videos/b/aa5026a3-0fc1-4b38-81c8-a85af696751a