Act 20

ACT 20

Export Services Act

Formally known as the “Export Services Act”, incentives new Puerto Rican service-based businesses with a variety of tax benefits. Since 2012, Act 20 has attracted over 2,000 new businesses to the island and is a part of a large initiative to transform Puerto Rico from a manufacturing economy to a 21st century, service-based economy.


4% flat corporate income tax rate vs. 21% in the US
100% exemption of profit and earnings distributions
Receive 100% exemption on property taxes
Receive 60-90% exemption on local taxes

The Legislative Assembly of Puerto Rico has explicitly listed 20+ industries that can qualify for Act 20 treatment. In addition to the following list, any other service may be acceptable depending on various economic factors.


  • Accounting
  • Advertising
  • Agricultural
  • Architecture
  • Consulting
  • Distribution
  • Engineering
  • Financial Services
  • Investment Banking
  • Legal Manufacturing

+ More

  • Medical
  • Public Relations
  • R&D
  • Software
  • Telecom
  • Trading

In addition to qualifying as an eligible service, Puerto Rico has straightforward procedures that must be met for Act 20 compliance. 

  • Receive approval from Puerto Rican government (6 week waiting period)
  • Pay $750 Application Fee
  • Must be a new Puerto Rican business with no nexus elsewhere

If you’d like more information on Act 20, we’re happy to guide you in the right direction – just shoot us a note