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Written in conjunction with TMF Group
That the Caribbean has a thriving tourism industry should be a surprise to no one, given the region’s beautiful beaches, temperate weather, and breathtaking views. However, the area also has a lot to offer in the way of business opportunities. Foreign investment in the Caribbean is on the rise, and Puerto Rico is especially becoming known as a hot spot for business expansion. There is the potential for business to grow with far greater returns compared to the conventional markets of the U.S. and Europe. In fact, for those companies and interests looking for entry into Central and South American markets, Puerto Rico is probably one of the better places in which to be.
Big Benefits of Doing Business in Puerto Rico
As a U.S. Commonwealth territory, Puerto Rico is the recipient of federal funding for programs and initiatives such as research, education, and infrastructure. Federal laws (such as intellectual property laws) also apply here. At the same time, Puerto Rico offers the competitive advantage of a favorable foreign tax structure.
Puerto Rico enjoys close access to the Americas with well-established transportation routes and networks. The cost of doing business is 10% lower on average in Puerto Rico than in the U.S, and there is a large workforce that is educated and able to speak both Spanish and English.
Puerto Rico’s government has been very busy creating and boosting incentives to bring in more business and investment funding. In addition to low taxation, businesses and investors can expect to operate with significant benefits in terms of regulations that support export of services and the starting of new business. It’s a win-win for investment interests as well as the country; investors see far bigger returns on what they put in, and the country sees an increase in their economy and jobs.
If the incentives work at bringing in sufficient interest, the country expects that the activity could be self-generating in growth, creating more manufacturing, technical training, finance and income to support the activities of the original investment.
Proactive Government Involvement
The government is saddled with a $72 billion debt figure that it is working towards managing and paying down. One of the most effective ways to do this is by stimulating the economy and attracting new investment to create income-generating market centers for both domestic and international benefit.
Puerto Rico’s administration has been extremely busy in augmenting its existing business sectors in tourism, agriculture, and manufacturing. The government is also regularly looking for ways to reduce operating costs with utilities, as well as reducing regulatory costs for doing business on the island. This proactive and aggressive approach is all part of Puerto Rico’s economic recovery goals.
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