Banking
Puerto Rico adopted the “International Financial Center Regulatory Act” (Act 273) to expand as an international financial center and promote economic growth by broadening the scope of banking activities and incentives for international financial entities (IFEs) organized in Puerto Rico.
Taxes
Although part of the United States, Puerto Rico has fiscal autonomy and operates in a separate tax jurisdiction. The unique interplay between island and federal tax laws creates the ideal environment for financial institutions and international businesses.
Insurance
The Office of the Commissioner of Insurance (OCS) has a long history of regulatory expertise and is one of the few government agencies that historically operates under a fiscal surplus due to their tight adherence with agency budgets.
Due to many advantages, Puerto Rico is an ideal jurisdiction for insurers and reinsurers from Latin American, Europe and other international markets.
Since its inception in 2005, the International Insurance Center (IIC) has propelled Puerto Rico as an important member of the international insurance arena. The IIC is an accredited member of the U.S. National Association of Insurance Commissioners (NAIC), as well as, a participating member of the Association of Insurance Superintendents of Latin America (ASSAL) further positioning Puerto Rico as a secure and regulated territory for international business.
Puerto Rico enjoys a privileged geographical location for global business. The advantages of a fully bilingual (Spanish and English) corporate culture have helped the Government of Puerto Rico in attracting and retaining high technology, capital intensive manufacturers for specialized industries.
As a United States Commonwealth, Puerto Rico’s free market economy is subject to both federal and state regulations designed to protect free market-competition; specifically, but not limited to, the insurance and banking industries. This position further stabilizes Puerto Rico as an attractive domicile for international insurance business and provides legal peace of mind for companies and individuals.
Puerto Rico provides a broad array of tax incentives for international insurers and international holding companies. In addition to the tax exemption under the International Insurers and Reinsurers Act of Puerto Rico, companies seeking to move insurance operations to Puerto Rico can also benefit from the island’s larger set of economic incentives.
The regulatory structure guarantees sound credit and investment practices with its use of US currency and general allowance of free flow of funds abroad. Legal protection is provided under both federal and state constitutions, with legal redress available in federal or State courts. ITA International Insurer, a company from the ITA Group, is based out of Puerto Rico and holds an insurance license for the distribution of investment vehicles to international investors from around the world.