Why Puerto Rico?
Why Puerto Rico?
If 300 miles of coastline and golden beaches aren’t a good enough answer, how about the fact that the pina colada was invented in Puerto Rico?
Puerto Rico is more than an island with a rich history, streets paved with blue cobblestones, and the brightest bioluminescent beaches.
It’s where our company is.
We love Puerto Rico. We understand it.
That gives us a unique perspective when it comes to providing top of the line services for our many international investors.
So, apart from the sheer satisfaction of purchasing a renovated home in a tropical paradise, what other reasons might you have for investing in a turnkey in Puerto Rico?
It’s a Part of the U.S.
While not yet one of the states, Puerto Rico has been a U.S. territory for over 100 years. Not only are both English and Spanish official languages on the island, but the U.S. dollar is the official currency.
Any citizen of the U.S. can travel back and forth from Puerto Rico without a passport. The quality of the infrastructure maintains the same level of quality as any other U.S state.
Also, from a business perspective, relocating your business to Puerto Rico means being exempt from U.S. federal taxes. That’s not something you can avoid in any other country in the world. This privilege is reserved for Puerto Rico and other U.S. territories.
Incredible Tax Incentives
Sure, Puerto Rico is well-known as a tourist destination, but for many companies and prospective investors, it’s a fascinating land of opportunity.
There are two main tax incentives that will make all the difference for those wondering if Puerto Rico is right for them.
Also known as The Export Services Act, the main goal of this incentive is to draw service businesses to the island. That covers asset managers, computer programmers, and anything else that falls into the exporting of services.
If a business is eligible, a special tax treatment with a host of benefits is applied. And that includes a flat 4% tax rate or lower. These companies also are 100% exempt from property taxes.
Also known as Individual Investor Act, this particular incentive is particularly appealing for stock traders, M&A practitioners, and venture capitals.
And pretty much anyone who doesn’t want to feel the effects of capital gains tax come the end of the year. Act 22 completely slashes all taxes on capital gains, dividends, and interests. You pay exactly 0% capital gains tax.
There’s one caveat though. All new investors must become residents of Puerto Rico. This means they have to live on the island for 183 days out of the year.
99% of the Island is an Opportunity Zone
For investors that don’t plan on moving to Puerto Rico, you can still benefit from investing in an Opportunity Zone. All potential investors are able to defer EXISTING capital gains for 10 years. They can also decrease capital gains between 10-15% if it’s held for five to seven years. Finally, all new capital appreciation is exempt from capital gains taxes.
Steady Cash Flow
Nothing beats turnkey when it comes to linear markets, except if it’s turnkey in Puerto Rico. The relation between the purchasing price and the average rental amount produces a significant cash flow.
Puerto Rico is the beacon of light in terms of the real estate market, and the timing is perfect to explore all possibilities.