For more than 60 years, Puerto Rico has used its unique territorial framework to enact numerous tax incentives programs that have served as its main economic development tool.
Puerto Rico is a territory of the United States, and the majority of US laws apply in Puerto Rico. However, Puerto Rico also possesses the authority to establish its own tax system.
For US federal income tax purposes, income derived in Puerto Rico and income tax paid to Puerto Rico are generally treated in the same manner as income derived in and taxes paid to a foreign country. The combination of these factors has permitted Puerto Rico to offer investors from the US and all parts of the world a unique business and legal environment.