Investment Destination: Puerto Rico New Tax Incentives to Lure Business and Individual Investment

The Bloomberg BNA Tax Management Weekly State Tax Report filters through current state developments and analyzes those critical to multistate tax planning.

Puerto Rico enacted two statutes that provide dramatic new tax incentives for businesses and individual investors. In this article Jeanelle Alemar-Escabi and Edgar Rios-Mendez discuss the nuances and details of both acts that essentially allow service industries relocating to the island to benefit from lower tax rates on income derived from customers outside Puerto Rico, while giving new residents a 100 percent exemption from taxes on interest and dividends, and long term capital gains accrued after the individual becomes a resident of Puerto Rico.