Learn About Act 20/22 in Puerto Rico

Take Advantage of Puerto Rico Tax Incentives

Did you know Puerto Rico was a tax haven? Pay less taxes AND live in paradise? That sounds like a no-brainer to us!

When most people daydream about living on a tropical island, they assume the dream can never become a reality. After all, moving to a Caribbean paradise and living right on the beach would be far too expensive, right? I love being the person who can tell people that living in paradise can be far more affordable than you think!

Not only are there some incredible steals on real estate right now, but Puerto Rico also offers amazing tax incentives that can help individuals and business owners save a bundle. It’s no secret that the island’s economic situation has been pretty bleak the past decade. The upside to this downturn is that the Puerto Rican government has enacted Act 20 and Act 22, tax incentives created to entice wealthy Americans to relocate to this tropical paradise.

Act 20

Also called the “Export Services Act,” Act 20 was enacted to provide tax exemptions and tax credits to businesses within Puerto Rico that offer products and services to outside markets. Some industries that are included within Act 20 are:

  • Research and development
  • Advertising and PR
  • Tech companies
  • Consulting services
  • Graphic art services
  • Accounting and tax services
  • Data processing
  • Call centers

Act 22

Also known as the Individual Investors Act, Act 22 offers tax exemptions to eligible individuals that relocate to the island full-time and apply for tax exemption. The tax incentive is only eligible to bona-fide FULL-TIME residents of Puerto Rico (you live here at least 183 days out of the year) that were not residents of the island for the preceding 6 years. If you are eligible, you will benefit from:

  • FULL tax exemption from income taxes on
  • all dividends and interest
  • FULL tax exemption from income taxes on
  • all short-term and long-term capital gains accrued after you become an official resident.

Let’s Make Your Dream of Living in Paradise a Reality

I love helping first time buyers as well as seasoned investors find their dream home here in Puerto Rico. As a native of the island, I enjoy sharing my insights and passion for my local community.

Please take a look at my listings and then get in touch with me. I always make myself available to answer any questions you may have about Act 20 and 22, or any other questions about relocating to Puerto Rico.

Let’s work together to make your dream of living in paradise a reality.

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