Why Puerto Rico | 2018 Retail Market Report
Act No. 22 Individual Investors
Tax Benefits Requirements
Passive Income Exemption • Available to new residents who have not lived in
Puerto Rico over the 6 years preceding the effective
date of Act 22 (January 16 th , 2006 to January 16 th ,
2012).
• Residency requirement: 183 days in Puerto Rico.
• In addition, the individual investors shall comply
with the requirement of Section 937 of the U.S.
Internal Revenue Code.
New residents will enjoy a 100% tax exemption from
Puerto Rico income taxes on all dividend and interest
income.
Capital Gain Exemptions
All capital gains accrued after becoming a new resident
will be 100% exempt from Puerto Rico taxes. These
gains will not be subject to federal taxes.
ACT 273
ACT 399
International
Financial Center
Act
International
Insurance Center
Act
• 4% Corporate income tax rate eligible activities. • • 100% exclusion on interests, financing charges or
participation in partnership benefits. $1.2 million tax exemption on net income.
4% over $1.2 million.
• Exemption from premium taxes.
• 100% exemption on real and personal property
taxes if property belongs to IFE. • • 100% exemption on municipal license tax. Exemption on dividends and other profit
distributions made by the International Insurer
and International Insurer Holding Company.
• 100% exemption on dividends distribution. • Exemption on municipal franchise, real and
personal property taxes.
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