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.
Incentives
Eligible Businesses
Financial Report
Energy Bill Credit
Documents
- A tax credit equal to 10% of the total project costs, or 50% of the cash investment made by investors (whichever is less)
- A tax credit equal to 40% of the eligible investment, the first tranche at the second year of operation, and the rest in subsequent years.
- A tax credit equal to 30% of the eligible investment, the 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 it is an existing project, Vieques and Culebra 75%
- 90% exemption on income tax or 100% exemption if the project is located in the island municipalities of Vieques or Culebra
- Up to 90% exemption on personal and real property municipal taxes, Vieques and Culebra 75%
- 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.
- 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.
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 to be submitted for the financial report to the Economic Development Bank
- Condohotel Concession Application Checklist
- Condohotel Supplementary Concession Extension Application Checklist
- Energy bill credit document list
- Documents to be submitted in pre-application meeting
- Circular Letter 2015-02
- Form for the Certification of Compliance pursuant to Section 4070.01 of the Puerto Rico Code of Internal Revenues
- Application checklist for tax exemption grant under the Puerto Rico Tourism Development Act of 2011
- Application checklist for extension of the tax exemption grant under the Puerto Rico Tourism Development Act of 2010
- Act 74 from July 10 2010
- Application checklist for tax exemption grant nautical tourism under the Puerto Rico Tourism Development Act of 2010
- Application Checklist for Tax Exemption for Boats Nautical Tourism under the Puerto Rico Tourism Development Act of 2010