Invest in Puerto Rico !
FDI in Figures For more than half a century, the Puerto Rican government has pursued its principal objective of creating new jobs by attracting foreign investment through financial and fiscal incentives. Among the financial incentives offered are rental of public buildings at attractive rates, wage incentives and access to financing through tax-free industrial bonds and direct loans. However, in the name of national security the federal government limits foreign investment in transportation, utilities, banking, communication, finance, nuclear power and defence.
The country ranked 65th out of 190 countries in the World Bank's Doing Business 2020 rankings.The Puertorican government actively seeks FDI, mainly through financial and tax incentives, which include renting out public buildings at attractive rates, wage incentives and access to financing through tax-exempted industrial bonds and direct loans, full or partial tax exemptions on income, property ownership, gross income of municipalities and construction, and excise taxes for certain agricultural activities. Puerto Rico's attractiveness include a skilled and relatively cheap labour force, excellent infrastucture, political stability, and a diversified economy. Also, as Puerto Rico is a U.S. territory, treaties signed by the U.S. government apply to the island as well. However, Puerto Rico is vulnerable to climatic factors, it has a high rate of poverty and unemployment and high level of bureaucracy. In 2016, Oriana Energy, an American company, announced that it would invest USD 160 million to develop Puerto Rico's largest solar power station in the Antilles. What to consider if you invest in Puerto Rico :
Strong Points Puerto Rico's strong points in terms of attracting FDI include: - bilingual and skilled labour force, which is less expensive than in the mainland United States; - excellent communication network and infrastucture; - the security and political stability of the U.S. judicial system; - diversified economy, benefiting from its US founding. Weak Points The major obstacles to FDI in Puerto Rico include : - vulnerability to climatic shoks (a huricane partially destroyed the island in 2015, strongly slowing down the economy); - high external debt ; - rather complicated administrative organisation, as a self-governing Commonwealth inside the US; - high poverty and unemployment rates. Government Measures to Motivate or Restrict FDI For over half a century, the Puertorican government has been pursuing a policy of attracting foreign investment through financial and tax incentives, with job creation as its main goal. The financial incentives offered include renting out public buildings at attractive rates, wage incentives and access to financing through tax-exempted industrial bonds and direct loans . Tax incentives include full or partial tax exemptions on income, property ownership, gross income of municipalities and construction, and excise taxes for certain agricultural activities; they also concern some manufacturing, tourism, film production and service industries (such as banking, finance, insurance, audit, IT, distribution and laboratories), if these services are rendered in Puerto Rico exclusively for non-residents and provided that 80% of employees are Puertorican residents. Bilateral Investment Conventions Signed By Puerto Rico Since Puerto Rico is a U.S. territory, treaties signed by the U.S. government apply. The United States currently has 42 bilateral investment treaties in place.