F&R Construction Group, Inc.

Business View Caribbean 7 vice businesses, including investment and hedge fund managers, to relocate to Puerto Rico and export their services. It does so by taxing their corporate profits at a flat 4 percent while making the dividends paid from profits on exported services 100 percent tax-exempt to individual recipients. Act 22, the Individual Investors Act, was designed to primarily attract high net worth investors to Puerto Rico by providing complete tax ex- ceptions on dividends, interest and capital gains, so long as the individual maintains residency for at least 183 days a year. Fullana explains how the tax incentives could poten- tially re-ignite a construction boom: “Let’s say you’re a $100 million company in Chicago. You move to Puerto Rico, you live here six months out of the year, and you only pay a 4 percent tax. So, with that law, a lot of people are coming to Puerto Rico and we’re