Puerto Rico’s pristine beaches and turquoise waters have long been a draw for tourists, but lately, the island is attracting a different kind of visitors; investors. A massive $2 billion luxury resort project planned by the billionaire Reuben brothers is just the latest sign that Puerto Rico is becoming a hotbed for investment. But what exactly is making this U.S. territory so attractive?
One major factor is the Puerto Rican government’s tax break program implemented after the devastation of Hurricane Maria in 2017. This program offers significant tax benefits to those who move to the island or invest in certain businesses. Act 60, for instance, grants tax exemptions on capital gains, dividends, and interest income for qualified individuals. These incentives have been particularly appealing to high-net-worth individuals and businesses looking to diversify their portfolios and reduce their tax burdens.
But Puerto Rico offers more than just tax breaks. The island boasts a well-educated and bilingual workforce, making it an ideal location for businesses looking to establish a presence in the Caribbean or expand their U.S. operations. Additionally, Puerto Rico’s status as a U.S. territory provides investors with the stability and security of U.S. laws and regulations.
The Reuben brothers’ Esencia project in partnership with Aman Group, Mandarin Oriental Hotel Group, and Rosewood Hotel & Resorts exemplifies this trend. If the hotel chains were not enough to convince you JPMorgan Chase & Co is financing this project. This sprawling development will encompass luxury hotels, high-end residences, and even a private airport. It caters to a growing demand for luxury experiences in Puerto Rico, fueled by a surge in wealthy newcomers and a resilient tourism industry.
While Puerto Rico faces challenges, the island’s unique blend of tax benefits, a skilled workforce, and a beautiful location is proving to be a powerful magnet for investors. The Reuben brothers’ project is just one example of the wave of investment that is transforming Puerto Rico’s economy. With its eye on the future, Puerto Rico seems poised for continued growth, attracting not just billionaires, but a wider range of investors seeking a piece of the Caribbean dream.
