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Act 20 Law for Promotion of Export of Services

The act 20 benefits service export companies. Under the Act 20, the service export provider can receive a reduced tax rate to the export of all kinds of services. This applies to local service providers who are encourage to expand their business and export their services. As well as to encourage foreign service providers to move to Puerto Rico and to create new employment opportunities in the island.

  • Law No. 20-2012 (signed January 17, 2012) – Act 20

Act 22 Individual Investors

Act 22 seeks to attract new residents to Puerto Rico by providing tax incentives for U.S. high net worth taxpayers. The Act 22 applies to new residents of Puerto Rico for a total exemption from Puerto Rico income taxes on all passive income realized or accrued after such individuals become residents of Puerto Rico (resident by the definition of the law). To qualify, the new resident must not have been a resident of Puerto Rico at any time from January 16, 1997 through January 16, 2012.

  • 100% tax exemption on interest and dividend income for new residents of Puerto Rico
  • 100% tax exemption on all long-term capital gains accrued after becoming a new resident

Act 22 offers the opportunity to completely avoid federal taxation on passive income as well as Puerto Rican taxation on the same income.

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Bruni Lorenzo

With over 20 years of sales experience, Bruni knows how to listen to buyers needs to offer the right properties. Working with good referrals, Bruni keeps a great variety of properties for sale/rent. If you are considering buying or selling a home or would just like to have additional information about real estate in Puerto Rico, please don’t hesitate to call or e-mail us.