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

Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...

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.