Puerto Rico Tax Residency and Corporate Structuring

Puerto Rico Act 20 and 22 offer incredible tax incentives to  residents, such as a 4% corporate tax rate for qualifying companies and 0% tax on capital gains and dividends. This makes Puerto Rico an attractive location for online entrepreneurs, traders, crypto investors and high net worth individuals.

Why Puerto Rico

Puerto Rico is a Caribbean island and US territory. Even though it is part of the United States and follows many of the same laws, it has an independent tax system. To stimulate growth, Puerto Rico introduced generous tax incentives with Act 20 and Act 22.

Act 20 Puerto Rico Export Services Act

  • 4% corporate tax rate

    Available to companies that provide services outside of Puerto Rico

Act 22 Puerto Rico Individual Investors Act

  • 0% capital gain tax

    Available to bona fide residents of Puerto Rico for gains realized after establishing residency

  • 0% qualified dividend tax

    On compensation from a Puerto Rico company, besides reasonable salary taxed at regular rates

Our Puerto Rico tax and structuring services

Puerto Rico offers incredible tax savings for residents and qualifying local businesses but it might not be the right fit for everyone. With our clients we evaluate their tax situation, travel/residency plans, business structure and overall goals, and advise them on the best location and business structure for their situation.

We evaluate the tax savings of Puerto Rico vs another offshore jurisdiction, bringing our expertise in both areas to offer a truly unique approach that many competitors do not have the knowledge to present. We analyze how they would qualify for both Act 20 and 22, the cost benefit analysis of doing so, and how this would be incorporated in their overall financial big picture.