Tax credit
A tax credit equal to 40% of the eligible investment, the first tranche at the second year of operation, and the rest in subsequent years.
INCENTIVESECONOMIC
The Puerto Rico Tourism Development Corporation is a subsidiary of the Puerto Rico Tourism Company (CTPR), created in 1992 specifically to promote investment, development, and construction of hotel projects throughout the archipelago.
We facilitate access to critical information, tax incentives, and regulatory frameworks that drive responsible investment and position Puerto Rico as a tourism leader.
Eligible Businesses
Puerto Rico's strength as an investment opportunity lies in its political stability, modern infrastructure, and a highly qualified bilingual workforce.
- Hotels, condo-hotels, small inns ("paradores"), guest houses, timeshares, and vacation clubs, including the operation of casinos.
- Theme parks, golf courses operated by or associated with a hotel that is an exempt business, tourism marinas, and docking facilities for tourists.
- Natural resources that are useful as a source of active or passive entertainment or amusement.
- Other facilities or activities that, due to the special attractive features deriving from their usefulness as a source of active or passive entertainment or amusement constitute a stimulus to domestic or foreign tourists.
Take the first step
Energy Bill Credit
Act No. 22-2016 provides up to 11% energy credit, if the tourism activity is endorsed by the CTPR and complies with the requirement stated in this form.
View formFinancial Report
The Tax Incentives Office provides assistance to the Economic Development Bank of Puerto Rico in evaluating the loan applications for the development of tourism activities.
Documents
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- Documents to be submitted for the financial report to the Economic Development Bank
- Condohotel Concession Application Checklist
- Application checklist for extension of the tax exemption grant under the Puerto Rico Tourism Development Act of 2010
- Energy bill credit document list
- Documents to be submitted in pre-application meeting
- Circular Letter 2015-02
- Form for the Certification of Compliance pursuant to Section 4070.01 of the Puerto Rico Code of Internal Revenues
- Application checklist for tax exemption grant under the Puerto Rico Tourism Development Act of 2011
- Application checklist for tax exemption grant nautical tourism under the Puerto Rico Tourism Development Act of 2010
- Application Checklist for Tax Exemption for Boats Nautical Tourism under the Puerto Rico Tourism Development Act of 2010
- Act 74 from July 10 2010
Summary of incentive categories
Eligible investment
A tax credit equal to 30% of the eligible investment, the first 10% percent at the moment to obtain the finance, the other 20% percent the first tranche the year that receive the first paying guest and the rest in subsequent years.
Construction taxes
Exemption on municipal construction excise taxes (Up to 75%)
Sales and use
100% exemption on sales and uses taxes
Municipal taxes
Exemption on excise taxes and other municipal taxes (Up to 50%)
Income tax
Exemption on income tax (Up to 4%, Vieques and Culebra 2% the first five years)
Personal and real property
Exemption on personal and real property municipal taxes, Vieques and Culebra (UP to 75%, Vieques and Culebra 100% the first five years)
Fuel
100% fuel used on exempt business to generate electricity (Includes petroleum-based fuels and fossil fuels (includes propane and natural gas)