![]() ![]() As business leaders build their remote workforces and grasp that they don't require large urban office spaces to operate, we expect that 2021 will have seen the largest-ever number of individuals and companies moving to Puerto Rico. Many tech employees are also looking to leave high-cost cities and move to more affordable areas that offer a better quality of life. If your company provides its services virtually or carries out back-office tasks, it can also qualify.īefore the pandemic, many entrepreneurs didn't believe they could move their companies out of San Francisco, Austin or other tech hubs, but are now realizing that they can hire talent and manage teams away from historical tech hotspots. Businesses that qualify for this receive a 4% corporate tax rate and a 100% tax exemption on distributions from profits. The Act 60 Export Services incentive (formerly known as Act 20), for instance, is offered to businesses that operate on the island but sell services remotely to clients elsewhere. If you move your business to Puerto Rico and/or relocate there yourself, you may be eligible for these lucrative benefits. Post-Covid remote worker movementĭue to the pandemic-induced lockdowns and other biosecurity measures, remote work has never been more popular, and Act 60 tax incentives offered to Americans who relocate to Puerto Rico are well suited for companies and individuals who prefer to work remotely. Related: Federal Judge Signs Plan to Resolve Puerto Rico's Bankruptcy in a Record-Setting Move 2. In addition, Rafael Hernandez Airport and Mercedita International Airport, which closed in March of 2020, have now reopened. These statistics are especially impressive considering that the rest of the Caribbean region is anticipated to have a meager 39% recovery in terms of visitor numbers. Interestingly, Puerto Rico's hotel occupancy in July 2021 was 15% higher than the 2019 rate, according to data from Discover Puerto Rico, and it's expected that once tallied, 2021 visitor numbers will have returned to 2019 levels. These factors have made travelers more aware of the island's hospitality industry and natural beauty. territory over other destinations like Europe and Central and South America, in part because flying here can be done without a passport, and avoids other international travel restrictions as well. (For example, starting a company that provides travel or support services is a viable and lucrative option.) Americans have recently been subject to restrictions on international travel. Puerto Rico's well-established tourism industry has continued to grow during the pandemic, opening a number of doors for business leaders. Wondering why you're even considering it though - Working remote in PR for over a year will subject you to paying local income tax (which is higher than both federal and average state taxes), but it'll also expose you to the the ridiculous 15% sales tax on top of the higher than average cost of items since they get a 'shipped' charge on their normal prices.Among the most attractive business considerations are: 1. If the company is anything like the ones I've worked with you will get a brand new hiring process packaged with a new job offer - it won't be a switch, more like a rehire.ĪND if your company uses location based salaries you will also be subjected to a pay cut based on cost of living and you will be re-branded an Expat for most payroll terms - this will mean that if you go over the threshold of salaries for any reason, you'll pay federal taxes as if you were in an international country. ![]() You will have to pay taxes if your employee does not have a site in PR or you haven't been 'transferred' to it. Or if you're your own boss and provide consulting/sales/services FROM the island (but you'll be subjected to the local service tax anyway). You would only be exempt if the company has a site in PR and your payroll is done through that location for more than a year.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |