Economic Incentives

40% Percent tax advantage

The incentives we have for film and television projects are one of the highest in the World.

Along with this incentive, we use US currency, commercial, banking and intellectual property laws. Our local talent and fiscal autonomy (we have no federal taxes), make Puerto Rico an ideal destination for many productions.

The 40% tax credit is an incentive calculated on expenditures paid to Puerto Rico residents given in the form of a transferable tax credit. These expenses include equipment, crew, travel (if through a local travel agency), hotels, and any other local expense that may apply, be it above and/or below the line and during pre-production, production and post-production stages.

Payments to Puerto Rico residents mean those made to either a Puerto Rican entity and/or resident that pays taxes in Puerto Rico.

Other Benefits:

  • Government tax waiver on hotel accommodations
  • Free government locations are available

Permits & Regulations

Our experienced promoters will walk you through and expedite any permits that may be required for your production. Regulations for each site may vary. Please contact our promoters for more information.

Ways to access the tax credit

The Government of Puerto Rico, through Act No. 362 of December 24, 1999, known as the “Puerto Rico Law for the Development of the Film Industry", offers a tax credit equivalent to 40% of budget items paid to Puerto Rico entity or resident or up to 50% of the cash invested as equity in the project.

In order to ascertain the amount of tax credit that will be certified, you need to have a Puerto Rico budget. There are some production services companies or local UPMs available that you can to do this. You can advance 50% of the estimated tax credit before shooting. In order to get the advance, you need to provide a letter of credit or an completion bond.

The tax credit is an incentive for investors in a Film Entity dedicated to producing a film project in exchange of stock or unit participations. There is a requirement that the Film Entity organizes its financing structure in Puerto Rico. There are local tax consultants that could assist you in this process and will do this work for you.

Documents

For details of how to access the credit, requirements and transaction costs you can download our tax credit presentation.

EF 001 Film Entity License Application Form
EF 002 License Request Form
Tax Credit Presentation (PDF)