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Incentives

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Incentives

Puerto Rico's natural beauty and world-class attractions make it a must-visit vacation spot, but these are not the only attractive selling points for the global tourism industry. The Island's incentive package for the tourism and hospitality industry is equally enticing. You can access the Puerto Rico Tourism Company's Virtual Clerk to request incentives.

TAX INCENTIVES OFFICE

  • HOSPITALITY AND HOTEL DEVELOPMENT

    By virtue of Act No. 74 of 2010, as amended, the Tourism Development Act, the Government of the Commonwealth of Puerto Rico, through the Puerto Rico Tourism Company, provides incentives for the development of world-class tourism activities. The benefits under this law will remain valid for a period of 10 years from the starting date of the eligible tourism-related project, and the business operation will be entitled to a 10-year extension.

  • INCENTIVES
    Tax credit equal to 10% of the total project costs, or 50% of the cash investment made by investors (whichever is less)
    Tax credit equal to 40% of the eligible investment, the first tranche at the second year of operation, and the rest in subsequent years.
    Tax credit equal to 30% of the eligible investment, first 10% percent at the moment to obtain the finance, the other 20% percent the first tranche the year that receive the first paying guest and the rest in subsequent years.
    100% exemption on municipal construction excise taxes, Vieques and Culebra 75%
    100% exemption on sales and uses taxes
    100% exemption on excise taxes and other municipal taxes for new projects or 90% exemption, if existing project, Vieques and Culebra 75%
    90% exemption on income tax or 100% exemption if project is located in the island municipalities of Vieques or Culebra
    Up to 90% exemption on personal an real property municipal taxes, Vieques and Culebra 75%
  • ELIGIBLE BUSINESS
    Hotels, condo-hotels, small inns ("paradores"), guest houses, timeshares and vacation clubs, including the operation of casinos.
    Theme parks, golf courses operated by or associated with a hotel that is an exempt business, tourism marinas and docking facilities for tourists.
    Natural resources that are useful as a source of active or passive entertainment or amusement.
    Other facilities or activities that, due to the special attractive features deriving from their usefulness as a source of active or passive entertainment or amusement constitute a stimulus to domestic or foreign tourists.
  • FINANCIAL REPORTS
    The Tax Incentives Office provides assistance to the Economic Development Bank of Puerto Rico in evaluating the loan applications for the development of tourism activities.
  • ENERGY BILL CREDIT
    Act No. 22-2016 provides up to 11% energy credit, if the tourism activity is endorsed by the PRTC and complies with the requirement stated in this form.




DOCUMENTS FOR INCENTIVES