Puerto Rico markets itself as low-tax, Spanish-speaking U.S. territory

To potential investors from Latin America and Spain, Puerto Rico played its trump card Monday by marketing itself as a territory regulated by United States legislation and judiciary rulings, but almost tax-free and where business is done in Spanish.

"Whoever invests in Puerto Rico knows that he's doing so on United States territory, regulated by its federal laws and protected by its judicial system, but with the advantage of enormous tax exemptions," Economic Development Secretary Alberto Baco told Efe on Monday.

Baco was in charge of welcoming business owners and executives from Latin America and Spain who are meeting this week in San Juan at the Puerto Rico Investment Summit, organized by the island's government to attract the foreign capital it needs to emerge from the recession it has suffered for almost a decade.

However, the word "recession" was never mentioned in the addresses, nor was the threat of a possible government shut-down in three months if it doesn't round up new sources of revenue or postpone the payment of liabilities brought on by the debt.

"It's not something we have to mention. The investors meeting here are aware of it and many have suffered the same fiscal problems in their own countries. They're more interested in learning about our tax breaks and the opportunities we offer as a point of entry into the U.S. and Latin American markets," Baco told Efe.

Much was said in the presentations about the high educational level of the Puerto Rican population and about how it is bilingual and bicultural.

"American companies sign up our engineers before they finish their studies," Baco said, but without mentioning the problem caused by so many university graduates and professionals moving to the United States.

What was most discussed, on the other hand, were the aggressive tax incentives offered by the island to attract capital, which are decidedly bearing fruit, including among Chinese investors, the director of the Tourism Company, Ingrid Rivera, told Efe.

"Soon we will have the first EB-5 (immigrant investor) hotel," she said with regard to the Four Seasons being planned thanks to an investment obtained through that program, which awards residency permits in the United States and Puerto Rico to those who invest the required minimum amount in job creation.

She said that a group of Chinese investors, "many of them interesting in bringing their kids to study in the United States," has already committed to investing $35 million.

"In Puerto Rico the two Americas (United States and Latin America) meet. Here we know how to eliminate many of the roadblocks that companies run into when they try to start up in one or the other," said Gov. Alejandro Garcia Padilla, who also addressed those attending the Puerto Rico Investment Summit. EFE

By Mar Gonzalo

Puerto Rico markets itself as low-tax, Spanish-speaking U.S. territory