Puerto Rico Labor Laws

Puerto Rico Labor Laws

Did you realize that the Puerto Rico labor laws are different in many key ways than in the mainland US? They are substantially more labor-friendly than you might expect. If you own or are starting a Puerto Rico business and have employees in PR, it’s very important to understand these key differences.

Additionally, there have been changes to these laws. Some have favored the employer, but some more recent changes, just passed in June of 2022, are more beneficial to employees.

Some key points

  • Puerto Rico labor laws are based on “right to work” rather than the “at will” employment in the mainland.
  • Employees in PR must be paid a Christmas bonus.
  • Paid vacations, sick leave, and government holidays are dictated by law.
  • Employment can begin under a probationary period of up to 3 months (which can be extended for up to another 3 months if you get permission from the PR Department of Labor).
  • Should you need to terminate an employee for cause, it’s important to show a history backing this up.

New Webinar

We had scheduled a webinar on this topic which incorporated the PR labor law changes enacted last year, but a new change is causing us to delay this webinar. A court connected to PROMESA recently declared the new laws void, and the results of this are still being worked out. We will reschedule the webinar once more details become available.

Blockchain Unbound 2018 Interview with Damaris Rivera

Blockchain Unbound 2018 Interview with Damaris Rivera

Damaris Rivera from Puerto Rico Advantage interviewed with theCUBE at the Blockchain Unbound 2018 event.

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.

Frequently Asked Questions About Puerto Rico

Frequently Asked Questions About Puerto Rico

Below are some of the most common questions we hear from people considering Puerto Rico as a relocation destination. Contact us for more details, and for a free consultation about your unique situation.


Doesn’t Puerto Rico Have a High Crime Rate?

Puerto Rico’s issue has more to do with public relations than actual crime! This image is partly formed by cultural stereotypes and political history.

Like everywhere else, Puerto Rico’s crime rate varies depending upon what area you happen to be in. Its metropolitan areas tend to be higher, especially in less wealthy parts of town. However, it can be argued that the crime in the cities is comparable to US cities. For example, Puerto Rico’s murder rate is half that of Washington DC and Detroit. If Puerto Rico were ranked for safety as if it were a State, it would be 19th in the list.

For those who are relocating and want an extra degree of protection, there are a number of gated community options that are extremely safe.


What is the Food Like in Puerto Rico?

The local cuisine is Spanish with Caribbean accents. It is heavy in meat, particularly pork, and moderately spicy, though typically less spicy than what you might find in other parts of Latin America. As in many “island” cuisines, sweet and coconut flavors can be found in many dishes. Plantains are a major staple.

Dining out, we have found that while many fine options exist in Puerto Rico, good restaurants featuring Asian cuisines, in particular, are rare.

Grocery stores are plentiful, and the locally grown food is inexpensive. For organic food, and other items that are not produced on-island, you may have to go to specialty stores, where the prices are higher.


Is it Safe to Drink the Water?

The tap water is considered safe to drink in Puerto Rico, as the sanitation standards are the same here as in the States.


Is it Necessary to Learn Spanish to Live in Puerto Rico?

The great news is that it is not necessary to learn Spanish to relocate to Puerto Rico!

Both Spanish and English are official languages in Puerto Rico. Most government forms and official sites, as well as most menus and other things you might need to read, are available in English. Also, most service providers and customer service representatives are either fluent in both English and Spanish, or at least know enough English to get by.

However, you will almost definitely encounter some people who speak little to no English. For these encounters, it can be helpful to learn at least a little conversational Spanish, though we have never yet encountered a situation when it was absolutely necessary. Puerto Ricans are generally very friendly and accommodating of a limited Spanish vocabulary; rather than being judgmental or impatient, as some cultures can be in this type of situation, the folks in Puerto Rico usually appear to us to graciously appreciate whatever genuine effort you can make.


What is the Cost of Living in Puerto Rico?

The cost of living varies depending upon the area in which you live. Gated communities tend to be more expensive for real estate, and the dining and entertainment in those areas are also pricier. However, people who move to more expensive areas in Puerto Rico may well have lived incomparably expensive areas prior. There are many areas to live which are still desirable and safe, but affordable.

Gas tends to be just slightly more expensive in Puerto Rico than in the States. (Also note that it is sold in liters rather than gallons, which can be confusing at first.) Electricity is currently about twice the price; however, there is never a need to heat your living space here, and while you may choose to run your air conditioner more, fuel efficient inverter air conditioners are common in most modern homes.

Food can be more expensive, particularly if you prefer to buy organic products, as there is currently very little organic farming happening in Puerto Rico. Other items that must be imported may cost more as well.

Here is a cost of living comparison tool which may give you a good idea of what you might expect, based on an average price for living in Puerto Rico, compared to wherever you may be moving from.


What would happen if Puerto Rico Became a State?

If Puerto Rico became a US State, its residents would become subject to US federal tax. This almost completely eliminates the benefits of the tax incentive Acts, as the low Puerto Rico tax would then become a state tax, owed in addition to what must be paid to the IRS.

It should be noted, however, that the people of Puerto Rico have declined Statehood, by public referendum, on more than one occasion in the past. Many Puerto Ricans are proud of their independence; Puerto Rico competes as its own country in the Olympic Games. Also, with so many of the population living in poverty, few are eager to accept the additional tax burden for many that would come with Statehood. Finally, it appears to us that many Puerto Ricans are savvy about the prospects for economic recovery, growth, and prosperity made possible by the Commonwealth’s unique legal status. Though Statehood may be inevitable at some point in the farther future, we judge it to be unlikely in the near term.

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.

What’s the Weather Like in Puerto Rico?

What’s the Weather Like in Puerto Rico?

Puerto Rico Weather

Puerto Rico weather is steady and pleasant all year round! It is worth a visit to check it out, if you are considering relocating to Puerto Rico. It is also a wonderful and popular vacation spot. Contact us if you would like further consultation!


Every Day is Beach Weather!

We have been very pleased to find that even on the lowest temperature days in Puerto Rico, you can still comfortably swim in the ocean! That is why there isn’t really an off-season here, tourism-wise.

The ultraviolet index at its strongest is 10+, with a maximum of 7 in the winter months.

Sunlight is from around 5:30am-7: 00 pm in summer, ranging to around 7:00am-5: 30 pm in winter.


Temperature and Humidity in Puerto Rico

Puerto Rico’s climate is tropical, and it is closer to the equator than any other place in the United States. However, relocating here, we have been happy to find the climate quite moderate – in fact, summers in many mainland US States feel much more severe to us than those in Puerto Rico! Year-round, the temperature remains a fairly steady low 80’s to low 90’s (note that we are listing all temperatures in Fahrenheit).

Hottest months: May-September
Average highs 87-89 degrees, average lows 77-78

Rest of the year:
Average highs 82-84 degrees, average lows 72-74

It is almost always quite humid in Puerto Rico. However, we have noticed that with the salt water air, the humidity feels much different in Puerto Rico, and in some ways does not bother us as much as it does in some mainland areas. Also, because the humidity is a constant, one gets used to it, unlike places where it is humid for a while then changes to something completely different than the body must quickly adjust to.

Average relative humidity ranges from 57% (considered mild) to 92% throughout the year. It rarely drops below a comfortable 47%, though it can reach as high on occasion as 98%.

Living near the beach in Puerto Rico, people often also find that the constant ocean breeze mitigates heat and humidity significantly. Eastern trade winds pass across the island year-round. And if you prefer a cooler climate, living in the mountainous parts of Puerto Rico offers temperatures in the 70’s year-round.


How Much Rain Does Puerto Rico Get?

Puerto Rico is a tropical climate with no dry season, through March tends to be the driest month. Rain can come at any time but is often in short, warm bursts that pass quickly. The rainiest part of the year is from April to November, and during these months, rain can last longer and be more frequent throughout the day. Rainfall varies greatly throughout the island due to the variation in topography, averaging from 29.32 to 171.09 inches annually.


Extreme Weather Events

Puerto Rico is in “hurricane alley”. Like in southern Florida, a portion of every year is considered to possess significant risk for hurricane development. Weather is monitored closely by local services, and residents are prepared with contingencies. There has not been a major hurricane in Puerto Rico since Hurricane Hugo in 1989, and that experience resulted in much more extensive hurricane preparedness across the island.

Tropical cyclones can also occur in Puerto Rico, generally around every five years, during La Nina events. However, cyclones do not tend to affect the structures in Puerto Rico as much as in the States, due to the different construction materials used here.

Though tsunamis are possible in the Caribbean they are not common. The most recent tsunami of significance which mostly affected the west coast of Puerto Rico occurred in 1918, caused by a major earthquake, which also affected Puerto Rico. Though they have not been frequent, there is some risk of earthquakes and tsunamis in this area.


Puerto Rico climate details

Annual weather table

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.

Traveling To And Around Puerto Rico

Traveling To And Around Puerto Rico

Air Travel

Puerto Rico air travel is fairly painless!  There are many non-stop flights every day between major eastern US hubs such as New York and Miami, and flights tend to be reliable and comparatively inexpensive.  If you are planning a trip to investigate relocating to Puerto Rico,contact us to help you!

Airports exist within an hour’s drive of almost any place on the island.  The following are the international airports, but there are 9 regional airports we aren’t including here:

  • San Juan – SJU (Luiz Munoz Marin International Aiport)
  • Ponce – PSE (Mercedita International Airport)
  • Aguadilla – BQN (Rafael Hernandez International Airport)

Renting a car in Puerto Rico

If you are planning a trip to Puerto Rico, you may find that it is difficult to rent a car during the Christmas season. Car rental companies may allow you to reserve a vehicle, but from mid-December to mid-January, some travelers find that no cars are available. Vacationers tend to extend their reservations without notice, and due to this and unexpected last minute cancellations, the agencies aren’t able to effectively manage their inventory.

For this reason, it may be best to schedule your vacation or exploratory trip during a different time period, or plan to be in a place where you can walk to most of what you want to see. Cabs are also very available and clean in the metropolitan areas, and relatively inexpensive.

Driving in Puerto Rico

Like the rest of the United States, the general infrastructure of Puerto Rico reflects “car culture”. It common for individuals or families to have at least one automobile, even if it is expensive, for commute and basic use. Private transportation is primary for many, accommodated by the extensive system of roads and traffic, complete with rush hour.

The size of the island is such that it would take a driver approximately 8 hours to travel around its perimeter at normal highway speeds. Those whose business interests would make frequent travel to different parts of the island advantageous, and those who want to visit the many natural wonders of the island with any considerable frequency, would find it advisable to simply own an automobile.

However, some who relocate to Puerto Rico elect to avoid the expense and extra hassle of owning a car. As elsewhere in the United States, public transportation and the proximity of goods and services can make this very feasible in some urban areas. In locales such as Condado, Isla Verde, and Old San Juan, a car really isn’t necessary. There are also several gated communities, many of them designed with expats in mind, in which it is typical for residents to use golf carts to get around.

For those who choose to, having a vehicle to use has its challenges:

  • Bringing your car with you when relocating to Puerto Rico isn’t cheap – shipping it will cost several thousand dollars, and you will also pay thousands more in taxes to import it (as much as 40% of the car’s value).
  • If you buy a car here, taxes are higher than in the States and in some other places. Taxes vary from 10-50% depending upon whether the car classifies as a luxury vehicle.
  • And leasing is, unfortunately, not really an option in Puerto Rico. While leases exist, they are rare, and such a different animal in Puerto Rico that they typically are not an attractive option.

Traffic can be a challenge as well. In some metro areas, congestion during rush hour is definitely to be avoided.

And finally, while the rules of the road in Puerto Rico are the same as in the States, people don’t tend to observe them in the same way. We find driving in Puerto Rico to be more chaotic and unpredictable than in other places we have lived. In some ways, it is more laid back – people tend to drive slower altogether, even in the fast lane. At the same time, you have to be very alert for unexpectedly creative interpretations of driving laws. To give a general impression, some of us find driving in Puerto Rico to be more difficult than in most of the States (with the possible exception of New York City), while far more sane and orderly than in some parts of Asia.

Puerto Rico’s Public Transportation

While there are some buses and trains in metro areas, many areas are not included. Bus schedules also have a reputation for being somewhat hit or miss. If you are considering public transit as part of your plan, it would be best to test out the options in your intended destination city.

Whether you are considering relocation or just wanting to check out Puerto Rico for the first time, contact us for advice and assistance!

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.

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