Puerto Rico Tax Incentives: Zero Federal Income Tax


Re-Broadcast on August 10, 2017

Extraordinary new tax incentives make living and working in Puerto Rico more enticing than ever before for U.S. citizens. In January 17, 2012, Puerto Rico passed legislation making it a tax haven for U.S. citizens that become residents of Puerto Rico. They create a sense of urgency for investors to move to PR and bring their business here through two extant tax incentive packages: Puerto Rico’s Act 20 – the Promotion of Export Services Act – and Act 22 – the Act to Promote the Relocation of Individual Investors to Puerto Rico.

The tax laws exempts new residents residing in Puerto Rico for at least half of the year from paying most federal income taxes. Both laws aim to provide attractive incentives to encourage investors to relocate to Puerto Rico, while also encouraging local service providers to expand their businesses by offering their services to clients located outside Puerto Rico. The laws strive to contribute to the growth of the Island’s economy and, since their enactment over four years ago, have been embraced on a bipartisan basis on the Island as an important part of the government's economic development plan.

In this CLE, we summarize the tax benefits available under Act 20 and Act 22 that may be of interest to individuals and companies seeking a general understanding of the potential tax benefits of moving to or relocating all or part of their operations to Puerto Rico.

Key topics to be discussed:
Puerto Rico Favorable Investment Climate
Puerto Rico Favorable Business & Tax Structure Highlights
Act 20 of 2012

  • Incentives for Puerto Rico Export Services Businesses
  • Eligible Services
  • Promote the Relocation of Individual Investors
  • Requirements for Incentives

Act 273 of 2012

  • To Promote International Financial Entities (“IFE”)
  • IFE Transactions

Date / Time: August 10, 2017

  • 2:00 pm – 4:00 pm Eastern
  • 1:00 pm – 3:00 pm Central
  • 12:00 pm – 2:00 pm Mountain
  • 11:00 am – 1:00 pm Pacific

Choose a format:

  • Live Video Broadcast/Re-Broadcast: Watch Program “live” in real-time, must sign-in and watch program on date and time set above. May ask questions during presentation via chat box. Qualifies for “live” CLE credit.
  • On-Demand Video: Access CLE 24/7 via on-demand library and watch program anytime. Qualifies for self-study CLE credit. On-demand versions are made available 7 business days after the original recording date.



ryan-christiansenRyan G. Christiansen, CCIM was born in Springfield, Virginia and graduated in 2002 from the University of Dayton with a B.A. in International Business. In 2004, he became a licensed real estate broker in Puerto Rico, specializing in the commercial and office space markets, investment real estate, and managing multinational corporation accounts. He also holds the Certified Commercial Investment Member (CCIM) designation and served as the 2012 & 2013 President of the Puerto Rico CCIM Chapter.

CHRISTIANSEN COMMERCIAL: Corporate Real Estate Service Advisors President & Broker: March 2012 – Present Office, Commercial & Industrial Real Estate Services:
• Provide leading commercial real estate investment brokerage services.
• Manage multinational corporation accounts and assist commercial real estate investors with advisory services, property dispositions, acquisitions, site searches, selections & relocations, negotiations, financial analysis, project evaluations, site analysis, marketing plan design and presentations.
• Responsible for adding value to customer’s real estate investments and creating favorable financial opportunities for them.
• Developing and implementing clients’ business plans, conducting market assessments and managing with superior execution.
• Responsible for consulting investors, developers, property management companies, financial institutions and appraisers regarding the consistently changing local real estate market to maintain competitive edge and spark creativity.
• Provide analysis comparing existing lease exposure to the open market value of comparable space always paying close attention to budgets, time frames, quality & product specifications.
• Conduct broker price opinions and portfolio optimization strategies.

Brian Tenenbaum
Regional Director, Puerto Rico, The Morgan Reed Group

A graduate of the Annenberg School of Communications at the University of Southern California and the University of Chicago Law School, Brian serves as the Regional Director of Puerto Rico for the Morgan Reed Group. In that capacity Brian manages a diverse real estate development and investment portfolio with a focus on leveraging real estate as a platform for innovation in areas like the renewal of Old San Juan and the revitalization of Santurce.

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