act 60 tourism

• 4% income tax rate

• 100% exemption on dividend distribution for PR residents

• 75% exemption on real and personal property taxes

• 50% exemption on municipal revenue taxes

• 100% exemption on sales tax

• 75% exemption on construction excise taxes

• 15 year term + 15 year extension

• Tax Credit Options:

  • 30% of Eligible Investment - 10% taken upon closing of financing, balance taken in three annual installments from opening date.

  • 40% of Eligible Investment - taken in three annual installments starting on second year of operation.

  • Tax credit may be sold or transferred

Requirements

• Pre-Application - Project's Eligible Investment for tax credit purposes will commence on the date of Pre-Application filing with the Tourism Company with the following:

  • Description of Project

  • Information of Project operator

  • Estimated Project costs

  • Sources and Uses of Funds

  • Job creation estimates

  • Opening date estimate

  • Pictures of land and buildings

  • Construction drawings and location map

  • Projected financials

• Application:

  • Sworn statement containing:

    • Name, address, telephone and EIN of entity

    • Names and SS numbers of all owners

    • Contact info of representative

    • Description of Eligible Business

  • Cert. of Incorporation

  • Financial Statements

  • Negative Debt Certificates from Hacienda, CRIM, Dept. of Labor, State Insurance Fund, and Tourism Company.

  • Construction Permit and Plans

  • Use Permit and other compliance

  • Certificate of Insurance Coverage

  • Real and Personal Property Inventory

  • Job creation estimates

  • Total investment detail

  • Sources and Uses of Funds

  • Estimated opening date

  • Property Safety Plan, Handicapped Facilities, Conservation Plan, and Personnel Training Plan.

Tourism Activities includes the ownership or management of:

• Hotels - tourism property with at least fifteen (15) rooms and may include restaurants, pools, casinos, spas, etc.

• Condohotels - Units for sale that comply with minimum requirements of a Hotel and are available to guests through a common reservation program.

• Puerto Rico Paradores - from 7-75 rooms that are operated under the categories of Hotel, Guesthouse or Villa.

• Agro-Hotels - minimum of three (3) rooms within a property that carries out agro-activities by a Bona-Fide Farmer.

• Guest Houses - minimum of seven (7) rooms with administrative personnel available 24/7. Must have private bathrooms and maid service.

• Timeshare - tourism property where guest purchases a specific unit, structure or villa for a specified time period every year.

• Bed & Breakfast Inns - from 3-6 rooms and includes breakfast as part of room rate. Must be operated by a permanent resident on property.

• Nautical Tourism - includes all watercraft with a minimum capacity of six (6) passengers dedicated to charters and other tourism activities.

• Medical Tourism - a medical facility authorized by the PR Health Department that serves short term stay visitors.

• Any business dedicated to leasing to an Exempt Business

• Theme Parks

• Golf Courses

• eSports

• Fantasy Leagues