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List of incentives available in this location for quick easy reference below.

Incentives

Table key

  • Incentive offered
  • Incentive not offered
  • Did not submit information
Cash grants/incentivesMore [+]Less [-]
  • PRIDCO grants special cash incentives to encourage the establishment and retention of local and foreign investment in Puerto Rico.
  • Puerto Rico is focused on attracting research and development to the island. Special Fund for Economic Development (known as the FEDE) can be utilized for special incentive programs or uses.
Tax exemptionsMore [+]Less [-]
  • 0-8% fixed income tax rate; 2-12% withholding tax on royalties.
  • Alternate Scenario 8% fixed income tax rate; 2% withholding on tax royalties.

Special Tax Credits:

  • Tax credits for products purchased in Puerto Rico
  • Tax credit of up to $5000 per job created during the first year of operation
  • 50% tax credit for qualified R & D expenses
  • Up to 10% credit for industrial energy consumption
  • Investment tax credit in strategic projects
  • Tax credits for renewable energy generation
  • Tax credits for investment in equipment for production of energy
  • Tax credits on investments in businesses winding up

Other Incentives:

  • Training incentives
  • Special deductions for investment in infrastructure, machinery and equipment
  • 60% exemption from municipal license taxes
  • 90% exemption from state and local property taxes
Property assistance / other fiscal incentiveMore [+]Less [-]
  • Companies may be eligible for pre-qualified infrastructure incentives on a reimbursement basis to improve buildings that belong to PRIDCO and are deemed necessary for the companies’ operations.
Training and labor market assistanceMore [+]Less [-]

The Puerto Rico Human Resources and Occupational Development Council (CDORH) administers funds received by Puerto Rico under the federal Workforce Investment Act (WIA).

The program offers:

  • On-the-Job training: WIA reimburses up to 50% of the salary of the participant for the duration of the training.
  • Customized training: WIA reimburses up to 50% of the salary of the participant as compensation for extraordinary costs and additional supervision that comes with the training.
  • Combined program: WIA grants 100% of training costs and up to 50% of the participant’s salary for the duration of the training.
  • Retraining: WIA grants 100% of the costs of retraining employees to handle new tasks and up to 50% of the salary of the participant during the retraining period.
Loan guarantees, cheap loans or financeMore [+]Less [-]

The Economic Development Bank (EDB) offers financial support to small- and medium-sized enterprises (SMEs) through: asset-based loans; participation loans with private financial institutions or under the SBA 504 loan guarantee program; mezzanine financing or capitalization loans; tourism project loans; management buy-out loans; and credit lines for operational capital.
Exemptions from regulations
Target sectorsMore [+]Less [-]
  1. Life Sciences manufacturing, supply chain, and R & D.
  2. Information Technology, Telecommunications, and Aerospace software development and engineering services.
  3. Renewable Energy manufacturing and development
Sectors specific incentivesMore [+]Less [-]
  • 50% tax credit for qualified R & D expenses
  • 25% tax credits for purchases of products manufactured in Puerto Rico

Sponsorship

If you are the authorised promotions agency for Puerto Rico and would like to have your location highlighted on fDi Atlas, you can contact our sales team on + 44 (0) 207 775 6667 or contact us here.