Business View Caribbean - December 2015 41
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
