Enjoy Big Tax Breaks on Digital Marketing From Puerto Rico - Relocate to Puerto Rico with Act 60, 20, 22

Blog: Articles to Help You Navigate Puerto Rico

Successful digital marketing agencies and their clients understand the powerful advantages that come with digital marketing when it’s implemented the right way. It can work wonders for selling the products and services of just about any industry. If you’re involved in digital marketing, you’re probably already using a variety of online marketing tools like ads, websites, search engines, social media, and mobile devices to drive awareness of your brand and attract customers.

But how do you take your digital campaign to the next level?

You can do it by moving to Puerto Rico under Act 60. This incentive, aimed at boosting economic development on the island, can provide tremendous tax benefits to qualified businesses and individual investors.

From Puerto Rico, you’ll manage your digital marketing with a minimal tax burden. You’ll be in good company. Entrepreneurs, Bitcoin billionaires, and countless others who have moved their businesses to this U.S. territory have enjoyed the island’s generous tax incentives for years. If your business is conducting its activities inside Puerto Rico, it may be eligible for substantial benefits that apply to income received from customers outside of Puerto Rico. One of these is a low 4% corporate tax rate (in contrast to the 21% corporate tax rate, plus state taxes, that a business pays on the mainland).

That’s not all. A 100% tax exemption on distributions from earnings and profits, a 50% tax exemption on municipal taxes, and a 75-100% tax exemption on municipal and state property taxes are among the other pluses for eligible businesses. Take a look at all of these additional tax incentives that may apply, depending on the nature of your business. An individual investor who becomes a bona fide resident of Puerto Rico can also receive a 100% tax exemption on interest, dividends, short- and long-term capital gains, and gains on crypto-based assets acquired after moving.

Once on the island, your relocated business will benefit from more than superb tax advantages. Puerto Rico is an ideal location for digital marketing activities thanks to its advanced IT infrastructure. Your chat bots, email newsletters, and mobile notifications will get your messages across swiftly and easily because the territory’s average internet speeds are among the world’s fastest. Puerto Rico doesn’t rest on its laurels and is also making great strides in expanding access on the island to lightning-fast 5G wireless technology.

Thanks to this favorable environment, your transplanted business will have a slew of additional options to stay ahead of the curve and hone its digital marketing skills. Perhaps you’ll be inspired by emerging digital trends and grow your use of artificial intelligence or the metaverse’s network of virtual 3D worlds. Maybe you’ll optimize your website personalization, email, and mobile notifications to welcome additional prospects. Developing a branded podcast as many other leading industries have done is another possibility to explore.

Puerto Rico’s gorgeous tropical vistas also make the perfect backdrop for video marketing, which has surged in popularity lately because of TikTok. Could the next viral video be yours, shot from your company’s new location on the island?

You can do it all and so much more in Puerto Rico, where the internet speeds are as high as the taxes are low.

Remember, you and your company will need to perform at least some of the work while physically residing in Puerto Rico before you can receive these tax advantages. You can follow one of two paths to make this happen: a total relocation of your business or partial relocation of it to Puerto Rico. Under the latter approach, you’d set up a new entity on the island that charges a “management fee” to the rest of your mainland-based business. To avoid penalties, this would require a transfer pricing analysis and intercompany agreements to determine the share of profits realized in Puerto Rico vs. on the mainland, as laid out in this guide.

Let PRelocate help you to transplant your digital marketing operations to the territory with ease. Reach out to our expert team to learn more about how the move to this beautiful Caribbean island will save you time, money, and effort.

We’re confident you’ll dig it all.

Disclaimer: Neither PRelocate, LLC, nor any of its affiliates (together “PRelocate”) are law firms, and this is not legal advice. You should use common sense and rely on your own legal counsel for a formal legal opinion on Puerto Rico’s tax incentives, maintaining bona fide residence in Puerto Rico, and any other issues related to taxes or residency in Puerto Rico. PRelocate does not assume any responsibility for the contents of, or the consequences of using, any version of any real estate or other document templates or any spreadsheets found on our website (together, the “Materials”). Before using any Materials, you should consult with legal counsel licensed to practice in the relevant jurisdiction.

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