Why Buying a Business in Puerto Rico Is a Smart Investment?

Puerto Rico’s Incentives Code (Act No. 60-2019) positions the island as a premier destination for business acquisitions, delivering a powerful fiscal framework that maximizes return on investment for both local and international buyers.

When you acquire a business operating under an active Law 60 decree, you gain access to substantial tax benefits — provided you secure prior approval from the Secretary of the Department of Economic Development and Commerce (DDEC) before any change of control. This approval preserves all existing exemptions throughout the transaction, protecting the business valuation and giving the buyer full legal certainty from day one.

One of the most compelling advantages is the preferential 4% capital gains tax rate applied to profits generated from the sale of the business or its substantial assets (≥80% of book value), compared to the standard tax rate. This benefit significantly reduces the tax burden and makes mergers and acquisitions in Puerto Rico exceptionally attractive.

Additionally, businesses qualified under the export services chapter pay only 4% on net income, with a 100% exemption on dividends distributed to shareholders. This world-class tax structure allows buyers to operate with minimal tax exposure from the very first day, optimizing profitability both short and long term.

Understanding and correctly applying Law 60 in any transaction is essential to structuring a successful acquisition that preserves fiscal incentives and maximizes the value of the purchased asset.

Ready to explore business opportunities under Law 60? Contact us today:

1551 Calle Francia, Suite #5A, San Juan, Puerto Rico 00911
Main Office: 787-476-9890
Ricardo González: +1 (787) 402-7168 | [email protected]
Chris Baker: +1 (310) 849-8940 | [email protected]

Let us help you capitalize on every advantage Law 60 has to offer!