Resources

Client Alerts, News Articles, Blog Posts, & Multimedia

Everything you need to know about BMD and the industry.

Puerto Rico Is Open For Business

Client Alert
November 16, 2021

Puerto Rico has the highest vaccination in the nation. More than 73% of the total population is fully vaccinated. The U.S. national average is just over 57%. The ports opened in June 2020 and San Juan held its first live concert this past summer. It is important to remember that Puerto Rico is a U.S. territory and there is no need for visas. The banking system is almost identical to the mainland, and the Island uses the U.S. Postal Service and the U.S. dollar as its currency. There are thousands of flights from the U.S. to Puerto Rico daily and all main airlines fly to the Island.

Puerto Rico is known for its tax incentives program to promote the investment of foreign companies in the Island. The Puerto Rico Incentives Code (Act 60) passed on July 1, 2019, has standardized 15-year term tax exemptions, which could be extended for an additional fifteen years. Some of the exemptions are directed to Export (Services and Goods), Financial and Insurance Services, Visitor Economy, Manufacturing, Infrastructure, Farming, Creative Industries, Entrepreneurship, Air and Sea Transport.

All residents of Puerto Rico are exempt from U.S. federal taxes, and Puerto Rico is in charge of making its own local tax laws. As an example, an export service company that sets up an office in Puerto Rico can get a 4% corporate tax rate and full tax exemption on all dividends. The company is only required to hire one local employee if the company's annual revenue is over $3 million. Furthermore, the Act offers full exemption from all local taxes on passive income to individuals that have not lived in Puerto Rico for the last ten years. It also requires the individual to purchase residential property and to donate at least $10,000 a year to a local non-profit.

The location of Puerto Rico in the Caribbean makes it ideal for business. The Island has two international airports, and it has three major ports. Furthermore, Puerto Rico's legal system is similar to the mainland, and the Island’s law schools are approved by the American Bar Association. Attorneys admitted in U.S. jurisdictions can appear ad hoc without much trouble. In addition, there is a United States District Court, and its appeals are taken to the First Circuit in Boston.

Puerto Rico provides similar benefits as any tax haven jurisdiction and also provides a strong rule of law to protect the interest of any business. Puerto Rico is the best of both worlds.

For additional questions, please contact International Law Attorney Omar Carmona at ocarmona@bmdpl.com.

International LawOmar Carmona
Client Alert

HOA Construction Project Do’s and Don’ts

January 20, 2025Local regulators can approve new construction, but if a resident contacts their homeowners association there may be trouble. Fences, yard alterations, and backyard decks do not have to be such a hassle and a point of conflict. Find out general Do’s and Don’ts to help HOA residents avoid issues in this article by BMD Partner Scott Heasley.Client Alert

New Ohio Recovery Housing Rules Take Effect January 1, 2025

January 2, 2025Ohio’s new recovery housing rules, effective January 1, 2025, require certified community behavioral health providers to refer clients only to accredited recovery housing residences listed on the statewide registry.Client Alert

SCOTUS to Weigh In on Medicaid Beneficiaries’ Right to Choose their Provider

January 2, 2025The U.S. Supreme Court will hear arguments this spring on whether Medicaid beneficiaries have an enforceable right to choose their healthcare providers without state interference, as outlined in Section 1902(a)(23) of the Social Security Act. This case stems from a South Carolina petition challenging a Fourth Circuit ruling that blocked the state from terminating Planned Parenthood’s Medicaid provider agreement.Client Alert

I Went to Bed and the Rules Changed: the Corporate Transparency Act is Back on Hold

December 27, 2024The United States Court of Appeals for the Fifth Circuit ordered on December 26, 2024 that in an effort to “preserve the constitutional status quo” while it considered the Federal Government’s appeal, it vacated the prior order for a stay of the nationwide injunction pending appeal entered on December 23, 2024, and reinstated the preliminary injunction enjoining enforcement of the CTA and its corresponding Reporting Rule.Client Alert

Telemedicine Flexibilities Extended to March 31, 2025

December 26, 2024The American Relief Act of 2025 extends key telehealth flexibilities through March 31, 2025, originally enacted during the COVID-19 Public Health Emergency (PHE). These flexibilities remove geographic and originating site restrictions for Medicare patients, expand the list of qualified practitioners, and allow for audio-only services and telehealth mental health care without in-person requirements. Although this extension is temporary, it provides continued access to essential healthcare services. Congress will need to pass permanent legislation to solidify these changes beyond March 2025.
Older posts
Newer posts