• Strategic Location

–Aguadilla, Puerto Rico is strategically located between the Caribbean Sea and Atlantic Ocean, midway between North and South America, and is the perfect bridge to connect Europe with the Americas

–2.5 hour direct flight from Miami, 3.5 hour direct flight from New York, direct international flights to Europe, include: London, Maastricht, Frankfurt and Amsterdam to mention some.

  • Pro-Business Tax Climate

–Benefits of operating within a U.S. jurisdiction while providing the tax benefits of a foreign tax structure

–Maximum corporate taxes have been reduced to 30% with a further reduction to 25% in 2014

–Strategic industries in manufacturing activities and services as well as in export services enjoy a 4% fixed income tax rate; Pioneer activities receive a preferential tax rate of 0%-1%.

  • Aggressive Incentives

–Several incentives acts have been approved to stimulate economic development and attract Foreign Direct Investment (FDI) in the following sectors: manufacturing, tourism, export services, insurance, financial services, agriculture, hospitality and hotel development and renewable energy

–Ranked among the top 15 FTZs in the U.S. – National Association of Foreign Trade Zones report (2011)

New BQN Airport FTZ no. 61, Site 24

  • Legal System and Political Stability

–Part of U.S. free trade zones and customs system

–Banking system regulated under U.S. laws (FDIC)

–Protection under the Homeland Security Act

–U.S. legal framework and intellectual property protection

–Access to federal programs and funds

  • Strong Business Ecosystem

–The official languages are English and Spanish

–No Passport is required for U.S. Citizens

–The U.S. Dollar is the official currency

–Full presence of international banks

–Sophisticated logistics capabilities and major couriers including UPS, FedEx, Crowley and Horizon

–Key suppliers provide support to life science, electronics, technology among others

  • World-Class Infrastructure

–Rafael Hernández International Airport (BQN) has the longest runway in the Caribbean with 11,702 feet long at 237 ft. over sea level with the necessary space for growth

–Sea Port in Mayaguez at less than 20 minute travel time from the BQN Airport

–Solid road and highway system

–Convention center and business facilities available

–Broadband service, under sea fiber optic cable and a robust satellite system to stay well-connected

–Major TV an radio stations

  • Low Cost of Doing Business

–Lowest labor costs of any region under U.S. jurisdiction

–Hourly earnings in manufacturing average 65% to 80% of the U.S average

–Permits emitted locally (in the city)

  • Skilled Workforce

–Highly educated, productive and bilingual workforce

–The University of Puerto Rico at Mayagüez (UPR-RUM), the premier engineering and science institution of the Caribbean and Latin America, ranks 1st in graduating Hispanic engineers and graduates over 200 new engineers each year.

  • Superior Lifestyle

–Average year-round temperature is 82ºF (28ºC)

–Two times winner of the U.S. Conference of Mayors: City Livability Awards, this year we are in the finals

–Most attractive people, great food, drinks and restaurants

–Excellent beaches for surfing

–Great golf course near the airport

ACT 20

Tax Incentives to Promote Export Services in Puerto Rico

TAX BENEFITS: Puerto Rico’s strategic location, status as a US jurisdiction and generous tax incentives make it an ideal base for entities that provide services to clients outside of Puerto Rico.

  • 4% maximum corporate tax rate
  • Dividends and distributions from earnings and profits are tax exempt for Puerto Rico residents
  • Certain investment income also qualifies for 4% tax rate
  • 60% exemption on municipal gross receipts tax
  • Exemptions guaranteed for 20 years, renewable for 10 more under certain conditions

  • Fully compliant with US

  • Other service exporters already using incentives to grow business and profits
  • Tax guaranteed for 20 years, renewable for 10 more under certain conditions
  • Incentives granted in Tax Exemption Decree — a binding contract with the Government of Puerto Rico

  • No federal taxes on Puerto Rico-sourced income until repatriated
  • Highly qualified professional workforce educated and trained to US standards
  • Easy access to US and Latin America

ACT 22

Individual Investors Act

ACT 73

Economic Incentives for the Development of Puerto Rico