Economic Impact of Act 20 in Puerto Rico

07 March 2017 by 0 Comment Business 431 Views
Act 20 companies are creating a positive financial effect for Puerto Rico. Act 20 companies are creating a positive financial effect for Puerto Rico.

As of November 2016, there were more than four hundred Act 20 decrees approved for operation in Puerto Rico. For a country that has not registered economic growth since 2006, this represents a new chance to recover from a seventy thousand million financial deficit.

While moving to Puerto Rico in the middle of an economic dilemma might seem a mistake, many investors want to expand their businesses without the tax struggle.  

These companies, which range from consulting and call centers to technology and marketing, are creating long term positive effects in the Puerto Rican economy, apart from the ones that we are already seeing.

 

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At the moment, these businesses are working from Puerto Rico to export their services worldwide. The top three places filled by the United States, Dominican Republic and Mexico. Other countries include United Kingdom, Colombia, India and Ireland. With this new model to export services, the Puerto Rican economy can experience the first steps of outstanding opportunities to build the solid foundation of a new economy.

Today, Puerto Rico is seen as a place that is exporting services to different parts of the world. This is attracting companies that want to take a look at the Latin American market, whithin USA laws and regulations. At first, the Exportation Act was seen as a one way deal for clients who needed lower rates. But after five years, Act 20 grant holders are helping build a new reputation for the Puerto Rican economy. 

Act 20 company exporting from Puerto Rico map

One of the markets that has seen a direct and solid consequence is the high end real estate market. Hundreds of properties that had been on the market for years are now being sought after by investors that now call Puerto Rico home; Dorado, Rio Grande and Condado are the top locations for clients.

Part of the official requirements to receive the benefits of an Act 20 is to create jobs for the local community. Generating high quality employment opportunities with a value added investment is one of the biggest impacts of these companies that have decided to take a new chance in the island. 

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