Tax Incentives

Navigating Compensation Regulations for Entities in Puerto Rico: A Brief Guide

In the vibrant business landscape of Puerto Rico, entities, encompassing corporations and partnerships, operate within a framework of specific tax regulations that shape various aspects of their financial structure. One crucial facet that business owners and stakeholders need to navigate is the concept of “reasonable compensation” for members and shareholders. Understanding Reasonable Compensation While there …

Navigating Compensation Regulations for Entities in Puerto Rico: A Brief Guide Read More »

Tax-Free Income – Law to Incentivize Property Acquisition

Puerto Rico Law 132 of 2010, also known as the “Law to Incentivize Property Acquisition and Promote the Construction Industry in Puerto Rico,” was enacted with the purpose of stimulating investment in property acquisition and promoting the development of the construction industry on the island. Here are its key points: It’s important to note that …

Tax-Free Income – Law to Incentivize Property Acquisition Read More »

Best practices to comply with the presence test

Here are some best practices to comply with the presence test: If you follow these best practices, you will be more likely to meet the presence test and be considered a resident of the state or territory where you want to live. Here are some additional tips: If you are considering relocating to Puerto Rico, …

Best practices to comply with the presence test Read More »

Act 60 for Export Services & Commerce and for Individual Investors (formerly Acts 20/22)

We have a strong practice in Act 60 for Export Services & Commerce and for Individual Investors (formerly Acts 20/22). We counsel and advise clients who are seeking to relocate to Puerto Rico to benefit from these tax incentives. Act 60 is a law that provides tax benefits for businesses and individuals who relocate to …

Act 60 for Export Services & Commerce and for Individual Investors (formerly Acts 20/22) Read More »

What are the best practices to comply with the Tax Home Test

Here are some best practices to comply with the Tax Home Test: If you follow these best practices, you will be more likely to meet the Tax Home Test and be considered a resident of the state or territory where you work. Here are some additional tips: If you are considering relocating to Puerto Rico, …

What are the best practices to comply with the Tax Home Test Read More »

What are the best practices to comply with the Closer Connection Test

Here are some best practices to comply with the Closer Connection Test: If you follow these best practices, you will be more likely to meet the Closer Connection Test and be considered a resident of the state with which you have a closer connection. Here are some additional tips: If you are considering relocating to …

What are the best practices to comply with the Closer Connection Test Read More »

As per the IRS, what do I need to do to becoming a Bona Fide Resident of Puerto Rico

According to the IRS, to be considered a bona fide resident of Puerto Rico, you must meet the following criteria: If you meet all of these criteria, you will be considered a bona fide resident of Puerto Rico for tax purposes. This means that you will be subject to Puerto Rican income tax on your …

As per the IRS, what do I need to do to becoming a Bona Fide Resident of Puerto Rico Read More »