With its rich history as a hub for film and television production, and a vastly experienced local workforce, Puerto Rico offers enticing tax incentives and economic benefits under the Puerto Rico Film Industry Economic Incentives Act.
Since their inception, these incentives have supported many major projects, including notable titles such as Fox/New Regency’s “Runner, Runner”, Disney’s “Pirates of the Caribbean 4,” Universal Picture’s “Fast 5,” and many others from prominent networks and studios.
Our firm is poised to guide you through every step of this process. From handling the application for tax concessions and obtaining tax exemption decrees to navigating government relations and optimizing tax credit placement and monetization, we ensure you maximize the benefits of filming in Puerto Rico.
Transferable Tax Credits
- 40% Transferable tax credit on payments made to residents of Puerto Rico for services physically performed in Puerto Rico.
- 20% Transferable tax credit on payments to “Above-the-Line” Non-Resident Talent for services rendered in Puerto Rico.
- 15% Transferable tax credit on payments made to residents, where the intellectual property is controlled by a local producer who also manages financing and production. This incentive is available when the producer is entitled to 30% or more of the net producers’ earnings.
Tax Rates
- 4% Fixed Income Tax Rate on development, preproduction, production, and post-production income.
- 0% Federal Income Tax.
Tax Exemptions
- 100% Tax Exemption on dividend distributions.
- 100% Tax Exemption on Excise Tax.
- 100% Sales and Use Tax Exemption.
- 75% Tax Exemption on municipal excise and other construction taxes.
- 100% Tax Exemption from personal property and real estate tax.
Eligible Activities
- Feature-films
- Short films
- Documentaries
- Commercials
- Video games
- Music Videos
- Series & mini-series
(including pilots)
- TV programs (including reality shows)
- Stand-alone post production
- Film festivals
- Live events
