Act 20-2012

The sales pitch for Act 20 is relatively simple: move your business from a high-tax jurisdiction to Puerto Rico and pay a 4% tax rate on income. The process is straightforward and both existing and newly created qualifying businesses are eligible for the benefits of Act 20. An important aspect of Act 20 is that it allows for tax-exempt distributions to shareholders, further boosting the competitiveness of your decision to move or open your business in Puerto Rico. Allow our team at Bahía Tax to help you determine whether Act 20 is right for your business and for existing decree holders; we can advice you on the proper compliance terms for your business.

Act 22-2012

Who wouldn’t want to live in paradise, under the U.S. flag without paying taxes? Act 22 offers the blissful trifecta of no taxes on passive income, such as capital gains, dividends, and interest. Coupled with the amazing quality of life and affordability of Puerto Rico in comparison to the mainland, Act 22 offers those who seek to relocate (at least 183 days a year) an incredible competitive advantage.

Most people that come to Puerto Rico to start a business focus on the benefits offered under Act 20-2012.

Act 135-2014

What most entrepreneurs don’t know is that there are other programs that make Puerto Rico one of the most competitive places on Earth to develop your start-up. During her tenure as an advisor to the Governor in 2014, our senior partner, Ana Montañez, was tasked with drafting legislation aimed at retaining and attracting young talent and increase the competitiveness of young startups. Act 135-2014 was approved to suit those needs and provides a qualifying business with the following benefits:

• 0% tax rate on the first $500,000 of revenue for the business during the first 3 years.
• No distinction of whether the income is obtained as an export business or aimed at the local market.
  • Municipal license tax exemption during the first 3 years
  • Property tax exemption during the first 3 years

• Tax Incentives for:

• Startups
• Young professionals
• Not-for-profits
• Individual Investors (Act 22)
• Export Services (Act 20)
• Physicians, Dentists and Podiatrists (Act 14)
• Tourism Industry
• Private Equity Funds
• Trusts and Estate Planning
• Tax Planning
• Government Affairs
• Transfer Pricing
• Tax Litigation
• Pension Plan Consulting
• Labor Law
• General Accounting and Bookkeeping
• Tax Audit Support
• Tax Returns
• Regulatory Compliance
• Business Development
• Budget Analysis
• Corporate structuring strategy
• Federal and state litigation
• Professional staffing solutions