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US territory with Act 60 tax incentives
Region
CARIBBEAN
Corporate Tax
37.5%
Setup Time
2 weeks
Currency
USD
Puerto Rico, a US territory in the Caribbean, offers unique tax incentives while maintaining US federal jurisdiction. The territory's company registration and Act 60 regime support specific business setup strategies.
With a population of 3.2 million, Puerto Rico offers Caribbean living with US citizenship benefits. Spanish and English are official languages. The tropical climate is warm year-round.
Healthcare is provided through US systems including Medicare/Medicaid. Safety varies by area. The cost of living is moderate, lower than mainland US.
The beaches, culture, and tax benefits have attracted mainland Americans and entrepreneurs.
Under Act 60 (formerly Acts 20/22), qualifying export service businesses pay 4% corporate tax. Individual investors can achieve 0% capital gains tax on Puerto Rico-sourced gains. Federal income tax does not apply to Puerto Rico-source income for bona fide residents.
Puerto Rico uses the US dollar. The economy has faced challenges but tax incentives have attracted new investment. Infrastructure requires consideration post-hurricanes.
Company registration through the State Department is efficient. LLCs and corporations follow patterns similar to US states. Foreign ownership faces no restrictions.
Company formation completes within weeks. Minimum capital requirements are minimal. Act 60 benefits require decree application and physical presence requirements.
Puerto Rico follows US federal crypto regulation while offering tax incentives. Some crypto entrepreneurs have established Puerto Rico residence for Act 60 benefits. Money transmission licensing follows PR regulations.
Puerto Rico licenses casinos primarily attached to hotels. Online gambling licensing is limited. The gambling license framework is not a primary attraction.
Physical presence requirements for Act 60 are substantial. Hurricane risk requires business continuity planning. Infrastructure reliability has improved but varies.
Banking access is through US banking system. Professional services for Act 60 are well-developed.
Puerto Rico suits export service businesses, investors seeking capital gains treatment, and those willing to establish genuine residence for their business setup.
Local: LLC
Local: Corporation
| Corporate Tax Rate | 37.5% |
| Personal Income Tax Rate | 33% |
| VAT / Sales Tax | 11.5% |
| Capital Gains Tax | 15% |
| Withholding Tax | 10-15% |
| Reduced Corporate Tax Available | Yes |
| Non-Resident Withholding Exempt | No |
| Tax Treaty Network | No |
| Banking Access | HIGH |
| Financial Privacy | MEDIUM |
| Currency Controls | NONE |
| Local Bank Account Required | No |
| Non-Resident Bank Account Allowed | Yes |
| Physical Presence for Banking | No |
| Banks Restrictive (High Risk) | No |
| AML Officer Required | No |
| MLRO Required | No |
| Compliance Officer Required | No |
| Data Protection Officer Required | No |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | Yes |
| Mandatory Audit | No |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | No |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $500,000 |
| Capital Maintained in Account | No |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF/FinCEN BSA |
| Business Plan Required | Detailed business plan with AML/KYC procedures required |
| Personnel Required | Qualified management, AML compliance officer |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | No |
| Registry Access | OCFI maintains non-public registry |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | No |
| Compliance Audit Mandatory | No |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Office of the Commissioner of Financial Institutions (OCFI), FinCEN, SEC |
| Licensing Fee | $5,000 |
| Licensing Fee Details | Application fee approximately $5,000; surety bond $500,000 for one office plus $10,000 per additional location; minimum liquid assets $100,000 |
| Permitted Business Models | Crypto exchanges, wallet providers, payment processors, Bitcoin Teller Machines (BTM), stablecoin issuers |
| Permitted Activities | Exchange, custody, transfer of virtual assets, payment processing |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | No |
| Derivatives Allowed | No |
| RWA Tokenization Allowed | No |
| App Store Listing Allowed | Yes |
| Crypto Custody Allowed | Yes |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | No |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $0 |
| Capital Maintained in Account | No |
| Compliance Program Required | Yes |
| Travel Rule Compliance | N/A for gambling |
| Business Plan Required | Comprehensive business plan required |
| Personnel Required | Licensed managers, cashiers, croupiers required for casino operations |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | No |
| Registry Access | Gaming Commission maintains licensee records |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | No |
| Regulators | Puerto Rico Gaming Commission, Commissioner of Financial Institutions |
| Licensing Fee | $0 |
| Licensing Fee Details | Varies by license type; casino licenses tied to hotel operations; sports betting operators and suppliers pay fees based on functions performed |
| Permitted Business Models | Land-based casinos (hotel-tied), sports betting (retail and online), slot machines |
| Permitted Activities | Casino games (roulette, craps, blackjack, bingo), slot machines, sports betting, esports betting, fantasy sports |
| Restricted Activities | Casinos must be associated with hotels allowing tourist use; online betting requires in-person registration; minimum gambling age 18 |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Player Fund Segregation | Yes |
| B2B/B2C Separate Requirements | Yes |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | No |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $500,000 |
| Capital Maintained in Account | No |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF/FinCEN BSA compliant |
| Business Plan Required | Detailed business plan with financial projections required |
| Personnel Required | Qualified management, statutory agent in Puerto Rico |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | No |
| Registry Access | OCFI maintains licensee registry |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Office of the Commissioner of Financial Institutions (OCFI), FinCEN |
| Licensing Fee | $5,000 |
| Licensing Fee Details | Application fees vary by license type; surety bond $500,000 minimum for money transmitters; International Financial Entity (IFE) license under Act 273-2012 has escalating capital requirements ($750,000 for 2025-2026, $1,000,000 for 2026-2027) |
| Permitted Business Models | Money transmission, check cashing, currency exchange, international financial entities |
| Permitted Activities | Money transmission, foreign exchange, payment services, international banking (IFE) |
| Restricted Activities | Banking activities require separate banking license |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |