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Chapter 5 — Visitor Economy
Chapter 5 — Visitor Economy
Chapter 5 focuses on incentives for the visitor economy, including tourism, lodging, entertainment, nautical tourism, and related hospitality activities. It is designed for businesses that develop, own, or operate hotels, guesthouses, tourism-related infrastructure, and services that attract visitors to Puerto Rico.
Overview
Chapter 5 provides tax incentives for tourism and hospitality businesses including hotels, guesthouses, hostels, nautical tourism, marinas, golf courses, and medical tourism facilities. The chapter recognizes tourism as a key economic driver for Puerto Rico.
Benefits include reduced corporate income tax rates on tourism income, property tax exemptions on facilities and equipment, and municipal tax relief. Many incentives extend to construction phases through sales tax reductions on materials and equipment.
Eligibility requires developing or operating qualifying tourism facilities that meet minimum standards for size, quality, and service level. Applicants present feasibility studies, architectural plans, and financial projections demonstrating economic impact including visitor nights and employment.
The chapter supports private investment in lodging, attractions, and tourism services that enhance Puerto Rico's competitiveness as a destination and create employment opportunities across the hospitality sector.
Available Incentives
Puerto Rican Paradores
Tax incentive for certified Paradores inns meeting Tourism Company standards for cultural authenticity and local character.
Theme Parks
Tax incentive for theme park development and operations, supporting major entertainment attractions and tourism infrastructure.
Nautical Tourism
Tax incentive for nautical tourism operations including yacht charters, sailing tours, and marine recreational activities.
Posadas Puertorriqueñas
Tax incentive for small inns emphasizing authentic Puerto Rican hospitality traditions and local cultural experiences.
Tourist Villas
Tax incentive for tourist villa rental operations providing self-contained vacation accommodations with private facilities.
Time Shares
Tax incentive for timeshare developments and vacation ownership operations, supporting recurring tourism visitation.
Private Equity Fund
Tax incentive for private equity funds investing primarily in Puerto Rico companies, providing preferential treatment on fund management income.
International Financial Entities
Tax incentive for international financial service entities conducting banking, insurance, or financial operations from Puerto Rico.
Tourist Marinas
Tax incentive for tourist marina development and operations, supporting recreational boating and nautical tourism infrastructure.
Golf Courses
Tax incentive for golf course development and operations, supporting golf tourism and recreational amenities.
Hostel
Tax incentive for hostel operations providing budget accommodation with dormitory-style and shared facilities.
Hotel
Tax incentive for hotel development and operations in Puerto Rico, providing property tax exemptions and income tax benefits for qualifying lodging facilities.
Inns
Tax incentive for inn operations providing small-scale lodging with personalized service and distinctive character.
Guesthouse
Tax incentive for guesthouse operations providing lodging in residential-style properties, offering benefits for small-scale tourism accommodations.
Tourism-Committed Corporations
Tax incentive for corporations making substantial commitments to tourism sector development and operations.
Condo Hotel
Tax incentive for condominium hotel developments combining individual unit ownership with rental pool operations, providing benefits for mixed-use tourism properties.
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