Investors want startups to run lean, yet they expect founders to live in the most expensive cities in the world. Puerto Rico offers many of the same benefits as other tech hubs, plus some you won't find anywhere else, at a much lower cost.
Puerto Rico is one of the fastest growing, emerging tech and venture markets in the US and LATAM with over 200 startup support organizations including co-working spaces, advisories and incubators. In addition, The island offers an unparalleled, contained and diverse startup test-market.
Much like Los Angeles 15 years ago, Puerto Rico has all the right ingredients to become another Silicon Valley, with one huge advantage – Puerto Rico is able to pass laws independent of the federal government, and is doing so in ways that are attracting thousands of investors, entrepreneurs and top talent to the island. Startups that establish in Puerto Rico under Act 20 pay a low PR tax rate of 4% while enjoying 0% Federal income tax rate. Additionally, founders pay 0% capital gains tax on equity returns at the time of exit. But that's only part of the story.
Puerto Rico is your chance to be part of a bigger story and you have one choice: Witness the massive growth from afar, or be part of it. More than 1500 individuals, mostly entrepreneurs and investors, have moved to the island within the last three years. With the island’s shift in sentiment towards entrepreneurial ventures post hurricane, we believe Puerto Rico is the place to be for entrepreneurs interested in innovation and social impact for the the coming years. Access to a rich talent pool, a rich culture, and a diverse consumer base are essential components needed for an ecosystem in which startups can thrive. The best part is that this all fits inside a beautiful 112x40 miles, tropical island in the caribbean.
WHY PUERTO RICO - THE BOTTOM LINE
Superior quality of life (QOL)
-> Perfect weather, beautiful beaches, happy people
Driven, highly-skilled, bilingual workforce
-> Grants available to help your company grow
USA trade, patent and financial protections
-> Made In USA
Significantly lower costs
-> Higher QOL with more disposable income
-> Higher corporate EBITDA
0% Fed, 0% PR personal capital gains tax
-> ROI on equity investments 30-60% greater
0% Fed, 4% PR corporate income tax
-> Higher Net Income
-> Greater valuations at exit