Puerto Ricos Economy
Most of what has been covered in the news lately is Puerto Rico’s debt, and there is no doubt that this is a serious issue. Currently, the new PROMESA board is at work to determine the plan to restructure Puerto Rico’s debt, and plan what changes may go with it to ensure ongoing accountability.
What is not included in these news reports is the stunning opportunities for new business growth that the island and all its many advantages make possible. In addition to incredible, world-class tax incentives, Puerto Rico is also attractive in other ways. These opportunities are very likely to continue since they are part of the means for improving the economy long-term. (There have been no signs that the recent passage of the PROMESA bill by the US Congress will negatively impact the ability or intention of the Puerto Rican government to continue to incentivize economic growth and recovery through the excellent legal tax advantages that it currently makes available to its legal residents.)
Beneficial for Businesses
Puerto Rico is a great place to do business for many industries. A number of fortune 100 companies have established operations here, including 10 of the world’s top 20 pharma and biotech companies; 2 Fortune 1000 companies are even headquartered in Puerto Rico. And out of 174 active Foreign Trade Zones, Puerto Rico ranks 13th in imports and 11th in exports (report reference from 2012).
- Puerto Rico’s tax incentives are world class!
- All needed infrastructure is in place.
- The tax incentives are creating an entrepreneurial environment, where it is easy to meet potential business partners.
- For many people, Puerto Rico’s weather, beaches, and beautiful places to live make it a very desirable place to relocate, so some employees and business partners may be easy to convince.
- PR has a bilingual population.
- One of the best engineering schools in the country is located in Mayaguez, and US companies heavily recruit all types of Puerto Rico STEM graduates.
- Puerto Rico is very accessible by air travel, with many non-stop flights daily from New York and other major US cities.
Puerto Rico Has the Most Developed Economy in Latin America
Puerto Rico’s annual gross domestic product is about $100 billion. The economy is already strong in the following sectors:
- Processed foods
Technology is a growing industry, and some predict it may be the next big wave.
Future Plans for Economic Development
Puerto Rico is currently still losing some of its most highly educated residents to higher paying jobs in other locations. Many of the plans to improve the economy involve creating additional and more substantial jobs locally, to retain top talent on the island. Attracting more business to Puerto Rico naturally also impacts the economy indirectly by creating more services jobs to support these businesses and new residents relocating to Puerto Rico.
The PR government’s plans include encouraging growth in Manufacturing, Services, and Tourism businesses. Act 73 (the Economic Development Incentives Act) and Act 20 (the Export Services Act), have been put in place to attract new businesses of these types to the island, to create new jobs for Puerto Rican residents, and to boost the local economy. The Tourism Development Act has been put in place to offer tax credits and exemptions for businesses constructing and operating tourism endeavors.
Puerto Rico is fortunate to be located in an advantageous geographic position along the Mona Passage, between the Atlantic Ocean and the Panama Canal. Puerto Rico’s Port of the Americas is designed as a modern, containerized import/export and transshipment cargo facility. Located in Ponce, Puerto Rico’s second largest city, on the southern coast, it is also very near to Mercedita International Airport (PSE).
With Act 214, Puerto Rico embraces innovation via the Science, Technology, and Research Trust. The Trust provides access to grants for projects involving technology commercialization, research, and the creation of science and technology jobs.
Plans are also underway to transform the former Roosevelt Roads Navy base into a diverse community including tourist attractions, residential properties, schools, and hospitals.
Read more about these and several other plans in progress to stimulate Puerto Rico’s economy in the official government report. Feel free to contact us with any questions.
We Can Help
Our company helps people like you take advantage of Puerto Rico’s excellent tax incentives! We can help you determine which tax incentives are right for you, help you plan your residency and relocation strategy, and simplify the entire process for you.
Contact us for a free initial consultation.