Governor of Puerto Rico Declared the Island “Open for Business,” and Invited Investors and Entrepreneurs to Be Part of its Economic Transformation

From Renewable Energy to Business Innovations, a New Puerto Rico
Offers Extensive Opportunities for Investors

NEW YORK–(BUSINESS WIRE)–Today, the Governor of Puerto Rico, Ricardo Rosselló, alongside the
Puerto Rico Department of Economic Development and Commerce (DDEC) and
other visionary business leaders who have made Puerto Rico home to their
global-reaching companies, gathered at the “Pathway to the Future:
Opportunities of an Economic Transformation” forum in New York City,
hosted in alliance with the Financial Times, to officially announce that
Puerto Rico is “Open for Business.”

During this transformative moment for Puerto Rico, the current
administration has implemented innovative initiatives and aggressive
local tax benefits to attract inbound investment as they reconstruct the
Island’s economy and infrastructure, and build a stronger, better Puerto
Rico.

As Puerto Rico seeks to move forward, many companies, ranging from
multinational corporations to small and medium-sized enterprises,
innovative start-ups and high-net worth investors, continue to call
Puerto Rico home. Companies like Microsoft, Lufthansa, Bacardi,
Medtronic, Amgen and Sartorious have long invested in Puerto Rico and
are committed to continuing to do so. Others, including Tesla and
Google, are investing in the Island’s recovery – from innovation to
renewable energy – helping to revitalize the Island’s future. Companies
engaged in the development and commercialization of blockchain
technology, like Blockchain Industries, are investing in software
development and exporting and commercializing intellectual property with
Puerto Rico as their global hub. By creating a resilient electrical
grid, partnering with the private industry to modernize infrastructure,
implementing island-wide broadband, and updating health care and skills
education systems, a stronger Puerto Rico with a thriving economy will
yield tremendous opportunities.

“As we look to rebuild, strong collaboration with the federal government
and the private sector will be critical to creating a stronger and
better Puerto Rico as we look to modernize energy systems, waterways,
highways and ports. Puerto Rico has the opportunity to use recent
public-private partnership successes, like our Luis Muñoz Marín
International Airport (SJU), that recently won gold for best operational
project at the P3 Awards, as a model to embark on its economic
transformation in technology, infrastructure and health care,” said
Governor Rosselló.

To promote export services, attract individual investors and foster
innovative start-ups, Puerto Rico also offers unparalleled incentives
including:

• Act 20: Provides for key services and activities a 4% income tax rate,
100% tax exemption on distributions from earnings and profits, and a 90%
exemption from personal property taxes for certain types of businesses.

• Act 22: Provides 100% exemption from income taxes on all dividends,
interest, and capital gains for bona-fide residents on income made in
Puerto Rico. This is especially attractive to individuals looking to
personally relocate to Puerto Rico.

• Act 273: Provides tax exemptions to business who qualify as an
“International Financial Entity,” who apply and obtain a decree. Once a
company qualifies as an IFE, it becomes eligible for other financial
incentives.

• Act 399: Provides a competitive environment for reinsurers to cover
risks in and out of Puerto Rico under a secure and flexible regulatory
system. Additionally, it provides for the exemption from premium taxes,
dividends and other profits, municipal property taxes, and more.

As Puerto Rico recovers, key government officials are reiterating the
Island’s commitment to opportunities for business and investment. The
job creation requirements for companies exporting services from the
island were removed and federally funded technology start-ups are now
eligible to earn research and development tax credits. At the same time,
a streamlined application and compliance process for new residents to
receive tax exemption on passive assets with a firm commitment to
process applications in 30 days or less has been put into place.

“Now is the time to invest in Puerto Rico,” said Manuel Laboy, Secretary
of the Department of Economic Development and Commerce. “Puerto Rico’s
strongest economic assets – our people, our resiliency, our location and
our incentives are all intact – and we now have the opportunity to add
to these assets with new, state-of-the-art systems to power the next
phase of our story. Our incentives for investors are unparalleled and
our workforce is highly educated. Combined with the protection of the
U.S. jurisdiction, we recently updated our incentive laws to make it
even easier for potential investors to take advantage of our aggressive
local tax benefits.”

Beyond these unmatched incentives, Puerto Rico also provides a quality
of life like no other major metropolitan areas in the U.S. The cost of
living is far below average metropolitan areas, and with key communities
located on the coast, the Island offers a balanced approach to the
boundaries between work and play. Its diverse and highly educated,
bilingual workforce with a vast knowledge in U.S. and global regulations
adds to the Island’s many assets.

Timed with today’s forum is the launch of Invest Puerto Rico, a
not-for-profit corporation with a mission to promote a vigorous and
growing state economy, encourage business investment in Puerto Rico,
improve trade relations with other jurisdictions, and foment job
creation across Puerto Rico through the efficient use of tax incentives,
credits, grants, marketing, and other forms of economic tools. Working
closely with the DDEC, and alongside the private sector, Invest Puerto
Rico will look to strengthen the Island’s investment brand and continue
to convey the unique value proposition that Puerto Rico has to offer.

About the Puerto Rico Department of Economic Development and Commerce
(DDEC)

The Government of Puerto Rico, through its Department of Economic
Development and Commerce (DDEC) is spearheading Puerto Rico’s economic
transformation, writing a new chapter in the Island’s history by setting
the foundation for the creation of next-generation infrastructure.
Through a series of alliances and partnership with private and public
sector entities, DDEC is working to encourage and increase investment,
entrepreneurship and enterprise on the Island, strengthening Puerto
Rico’s idyllic position as a U.S. jurisdiction like no other that fully
supports the endeavors of multinationals, small- and medium-enterprises,
and innovative start-ups in myriad fields, including health, innovation,
technology and infrastructure.

To achieve this, the DDEC is actively developing processes to manage
incoming funding efficiently, updating current incentive laws to make it
easier for potential investors to take advantage of local tax benefits,
fostering collaborations between local and federal governments and the
private sector, and enacting bold fiscal and reform strategies. These
undertakings work in tandem with DDEC’s daily objectives: implement and
supervise the Island’s economic development policies; promote a stable
and sustainable private sector; transition the current economy to the
global stage; support strategies that incentivize investment, create
jobs and improve the quality of life on the Island.

DDEC has the full support of the Government of Puerto Rico to take the
necessary steps to create a 21st century business ecosystem in Puerto
Rico and send a clear message to the world: Puerto Rico is Open for
Business.

Contacts

Puerto Rico Department of Economic Development and Commerce (DDEC)
Damarisse
Martínez,
Tel: (787) 562-4555
or
Maura Ríos Poll
Tel:
(787) 344-0192