“ARMED WITH AN AMBITIOUS ECONOMIC DEVELOPMENT STRATEGY, PUERTO RICO IS GIVING GAME-CHANGERS FROM MYRIAD FIELDS THE SUPPORT AND RESOURCES THEY NEED TO MAKE “IT” HAPPEN.” – ELLA WOGER-NIEVES – CEO, INVEST PUERTO RICO
The day began like any other: a morning power-walk along the beach under a rising 7:00 a.m. sun, on my way to wind down and get a cup of coffee at the local “panadería” (a traditional bakery-coffee shop common to most neighborhoods across Puerto Rico).
This type of business plays an important role in the community, as it is here where people come to get their morning “café con leche,” grab a bite to eat, catch up on their news, and exchange light banter with friends. The faces in this spot reflect the fabric of this San Juan neighborhood, and for some inexplicable reason, that day I paid close attention to my fellow patrons, even though I’d been going there for years.
There they were, in happy coexistence: Puerto Ricans of all ages, from Boomers to Gen Z-ers; neatly dressed professionals in rush mode; families looking ready for their next stop at the beach; tourists enjoying the authentic local vibe of the place; and a dose of business folks from Puerto Rico and beyond. I discreetly overheard all kinds of conversations: “Which beach are we going to visit today?” “At what time is the Zoom meeting?” “Check out that new restaurant in the mountains,” “Did you go to the concert last night?” “Remind so-and-so there’s a networking event tonight,” and so on. Regardless of their background, here they were at this decades-old panadería getting “it” done, “it” being work, play, or both.
Before my eyes was a snapshot of Puerto Rico’s current reality neatly summed up: a new era of socioeconomic transformation powered by people from across the island and the globe, making the most of the island’s assets to get “it” done, to innovate in their respective fields, be it in tech, services, bioscience, creative industries, energy, and many more. Armed with an ambitious economic development strategy, Puerto Rico is giving game-changers from myriad fields the support and resources they need to make “it” happen.
This book is more than an overview of Puerto Rico’s value proposition. It is an invitation to come learn first-hand of the opportunities others have found here, enjoy our rich culture, and unleash your business potential. But first, coffee at your local “panadería.”
Game-changers, Welcome Home
AN EMERGING INNOVATION & ENTREPRENEURSHIP PARADISE
Puerto Rico is a budding hotspot for innovation and entrepreneurship. The island’s 60-year legacy in manufacturing has evolved into a vibrant ecosystem that supports a wide spectrum of enterprises, from startups to fully scaled operations in a variety of industries. An established network of entrepreneur-focused nonprofits fuels collaboration – and a close network of business and community leaders means that Puerto Rico is perfect for introducing new businesses and scaling them up for national, regional, or global markets.
Thriving on the Island are a new generation of entrepreneurs that are resilient, tech-savvy, and globally minded. Along with newcomers attracted by incentives and the Island’s unique lifestyle, the start-up ecosystem has evolved around co-working spaces, accelerators, and other initiatives that support entrepreneurs. Puerto Rico is a tropical destination with abundant resources to stay ever connected to global business partners. With public Wi-Fi in multiple city centers, 5G rolled out across the Island, and shared workspaces that encourage productivity, creativity, and growth, Puerto Rico is the perfect place to start a business. In addition, competitive incentives top the offer for a business-friendly landscape with a high quality of place.
Business Climate
Puerto Rico has the largest and most diversified economy in the Caribbean, with a GDP over $100B and exports to more than 130 countries around the world. A wealth of opportunities lies in myriad sectors, from bioscience, technology, financial & professional services to entrepreneurship. The backbone of Puerto Rico’s competitive edge is its familiar playing field. As a U.S. jurisdiction, the ground rules for doing business in Puerto Rico allow for the same level of operational security, stability, and protections, so you can invest with confidence. This includes the U.S. dollar (it is the only and official currency); U.S. federal law and all the protections that go with it, including intellectual property and patents; a U.S. banking framework that also features the credibility of the Federal Deposit Insurance Corporation (FDIC); and the trust that comes with stamping a product or service as “Made in the USA.”
It is easy to understand why hundreds of the world’s leading companies already call Puerto Rico home, and why local startups are working in new ways to diversify the array of entrepreneurship options on the Island.
People Power
Puerto Rico boasts a highly talented workforce, with especially strong concentrations in technical, engineering, and science professions. The highly educated and skilled workforce is drawn from an academic ecosystem of more than 80 universities and colleges. Each year, more than 50% of university graduates are in the STEM fields. Companies in Puerto Rico not only benefit from the technical prowess of the local talent but also from the bicultural and bilingual reality of the Island. With over 50% of the workforce capable of operating in either English or Spanish, businesses can easily reach customers around the world and even use Puerto Rico as the jumping-off point to expand operations into the mainland U.S. or the rest of Latin America.
Organizational Support
Puerto Rico’s diverse economy and dynamic business community collaborate in a productive way that fosters growth. Connecting with like-minded businesspeople provides valuable local insights. The island features a community of collaborators that reaches far beyond conventional places, including a robust network of workspaces, mentors, accelerators, incubators, and venture capital; accessibility to a tight-knit network of professionals and entrepreneurs; support of local organizations and educational and research institutions, especially in industries such as biosciences, manufacturing, aerospace, and information technology.
Puerto Rico offers support services for businesses and individuals looking to invest and grow on the island, and Invest Puerto Rico can help connect you with key organizations that can facilitate your journey as you learn more about getting established on the island.
Location. Location. Location.
Puerto Rico’s strategic location is one of its greatest strengths. Located in the heart of the Caribbean, it is easy to travel directly to important destinations throughout the U.S., Latin America, the Caribbean, and Europe. The island also provides access to valuable shipping and air routes to North and South America thanks to three international air transshipment hubs, 11 seaports, and 11 airports.
Tax Benefits & Policy
Puerto Rico’s favorable business environment delivers attractive tax benefits. The Puerto Rico Incentives Code (Act 60) provides incentives that support operating costs, job creation, and growing specialized talent in Puerto Rico. Also, individuals drawing their income from Puerto Rican companies are exempt from federal income taxes. The following main tax benefits are offered as part of Act 60:
- 4% fixed income tax rate on eligible income
- 100% tax exemption on capital gains
- 75% exemption on property tax
- 50% exemption on municipal license tax
- 15 years standard tax exemption grant period (with potential to renegotiate for an additional 15 years)
The Puerto Rico Department of Economic Development and Commerce (DDEC for its Spanish acronym) is the primary government institution that manages the incentives for businesses and individuals. Invest Puerto Rico supports in navigating the application process and liaising with our partners at the DDEC.
Lifestyle
Puerto Rico’s tropical islands, rainforests, mountains, canyons, and beaches offer a mix of climates unlike many in the world. The island’s thriving cultural scene offers live entertainment year-round and delicious food to satisfy every appetite. It’s a quality of life that provides endless opportunities to experience nature and soak up culture.
Puerto Rico’s culture is a lively mix of Taíno, African, and Spanish influences. This fusion is felt in almost every aspect of Puerto Rican life: the cuisine, arts and crafts, music, and traditional festivals. Museums and cultural centers feature European classics and Afro-Caribbean sculpture. The architecture blends traditional colonial styles with a bright palette of colors. And the island’s music and dance scene brings together instruments, rhythms, and sounds from eras and places as distant from each other as 18th century West Africa and medieval Spain.
In Puerto Rico, you can’t help being influenced by living among the diversity of tastes, sounds, and sights that make up the history and culture of the island.
