Despite facing challenges in recent years, Puerto Rico is bouncing back, offering investors a chance to be part of its revival , and charting a course toward economic rejuvenation, creating a fertile ground for those looking to partake in its growth. From substantial investments in critical infrastructure to a thriving manufacturing sector, robust import/export capabilities, a flourishing tourism industry, and a resurgent real estate market, Puerto Rico is poised to captivate global interest.
Revitalizing Infrastructure:
Puerto Rico is on the brink of transformation with an infusion of $12 billion in relief funding earmarked by the U.S. Congress. This financial commitment aims to not only rebuild but modernize the island’s energy grid, which has faced the brunt of natural disasters. Savvy investors can play a pivotal role in shaping a contemporary and resilient energy infrastructure, emphasizing the transmission and distribution of renewable energy.
Manufacturing Marvel:
Puerto Rico’s well-established industrial base positions it as an ideal location for manufacturing ventures. For over sixty years Puerto Rico has stood as a global leader in biopharmaceutical manufacturing. The Island is home to 10 of the world’s 20 top-grossing pharmaceutical companies, producing top-selling brands such as Humalog, Humira, Eliquis, Opdivo, Enbrel, Neulasta, Remicade, and Xarelto. Boasting significant facilities for industrial production and a sophisticated infrastructure facilitating the smooth flow of raw materials and goods, the island is a prime destination for those seeking to establish or expand manufacturing operations. Major ports, including San Juan, Mayaguez, and Ponce, equipped with free trade zones, further enhance its appeal.
Global Trade Nexus:
Situated strategically, Puerto Rico plays a crucial role in international commerce. Investors can leverage the island’s major ports and free trade zones, tapping into significant import/export activities. With strong ties to the mainland U.S. market and access to other global markets, Puerto Rico’s export portfolio includes pharmaceuticals, medical supplies, computers, garments, fish, and rum. Moreover there are many tax exemptions in Puerto Rico that businesses can benefit from:
- The Incentives Code introduces a general 4% CIT rate applicable to eligible income.
- Novel Pioneer Activities are eligible for a 1% CIT rate.
- Dividend distributions enjoy a 100% exemption.
- Any exempt business having operations in Vieques and Culebra may qualify for a 2% CIT rate during the first five years of operations as established in the Incentives Code. The remaining years covered by the Incentives Code may qualify for a 4% CIT rate.
Tourism Thrive:
Puerto Rico has long been a jewel in the Caribbean’s tourism crown, consistently attracting a steady stream of visitors. Bolstered by direct flights from various U.S. cities, as well as international destinations such as Frankfurt and Madrid, San Juan’s Luis Muñoz Marín International Airport serves as a gateway to the island’s tourism riches. Entrepreneurs can explore opportunities in hospitality and entertainment to capitalize on Puerto Rico’s enduring appeal.
Real Estate Renaissance:
After a period of decline, Puerto Rico’s real estate market is experiencing a renaissance. The housing price index, which witnessed a dip until 2017, is now on an upward trajectory. With encouraging signs of recovery and a range of tax incentives aimed at attracting new residents, the real estate sector presents a compelling business avenue on the island.
Spanish Enterprises Leading the Way:
Spanish companies are playing a significant role in Puerto Rico’s economic scene. Abertis, a Spanish player, won a bid for four highways, committing 2.7 billion euros for a 40-year project.
Another Spanish player, Balearia, is set to invest 100 million dollars in launching a ferry service between the ports of San Pedro de Macorís and Mayagüez, strengthening transportation links and showing Spain’s commitment to Puerto Rico’s development. These companies give us an example of the real opportunities that Puerto Rico offers.
As Puerto Rico charts its course for 2024,the island emerges as a tapestry of diverse business opportunities. From shaping modern infrastructure to participating in manufacturing, global trade, tourism ventures, and real estate endeavors, investors stand at the threshold of a dynamic and promising market. With the active involvement of Spanish enterprises and beyond, Puerto Rico’s economic resurgence becomes a collaborative effort, offering a compelling narrative for those seeking to invest and thrive in this tropical business haven.
