Puerto Rico is trying to entice service related industries that help bolster their manufacturing rich economy. Puerto Rico is looking for advertising firms, accounting firms, hedge funds and wide ranges of consulting firms. Here are the benefits of Act 20:

  • 4% fixed income tax rate
  • 3% fixed income tax rate for services that are considered vital for Puerto Rico’s economy
  • 100% tax exemption on distributions
  • 90% tax exemption on personal property taxes
  • 60% tax exemption on municipal taxes


What are Puerto Rico’s Tax Incentives?

Puerto Rico’s current list of tax incentives includes:

Act 20

Act 20 was created by the government of Puerto Rico to promote business on the island by establishing tax incentives for businesses, and promoting the services of Puerto Rico businesses known as opportunity zones. The Act also promotes investment in the research and development for private businesses and universities. Finally, the law also gave discounted energy costs for businesses that moved to Puerto Rico, allowing them to be more profitable and efficient.

  • 100% exemption on property taxes
  • 100% tax exemption on profit distributions
  • 100% tax exemption on dividends
  • 4% corporate tax rate

Act 22

Act 22 was created by the Puerto Rico government to attract new residents by eliminating all Puerto Rico income taxes on passive income that was earned after an individual became a resident of Puerto Rico. The government believed that the new law would increase investment in real estate, consumption products and services. In short, they are looking to boost the economy of Puerto Rico.

  • 100% tax exemption on all dividends
  • 100% tax exemption on all interest income
  • 100% tax exemption on all capital gains
  • 4% corporate tax rate


TLS is a full-service management and business tax consulting company that makes it possible for qualified clients to outsource particular functions of their operation in a way that dramatically increases their profitability through:

  • substantial tax reductions
  • decreased employment costs
  • increased liquidity
  • streamlined processes
  • increased efficiencies
  • cost effective on-going consulting support

TLS expertise in business strategies and tax law has allowed us to create more than 6,000 tax-planning strategies tailored to our client’s business and personal situation. TLS designs and implements unique proprietary Puerto Rico Strategies that allow clients to take as much advantage of the tax incentives as they desire. The variety of the Puerto Rico Tax Strategies that can be applied to your business provide wiggle room for the individual aspects of your business, comfort level, current tax situation, and operations. TLS provides all of this and more and you don’t even have to move to Puerto Rico.

What Are the Steps?

See If You Qualify

Take one-minute to answer a few questions to see if you qualify for our complimentary, comprehensive tax analysis.   It’s completely free, you have nothing to lose.