Are you between 16 and 35 years old and ready to start your own business in Puerto Rico? Under Chapter 10 of Act 60-2019, known as the Puerto Rico Incentives Code, young entrepreneurs now have access to powerful tax benefits designed to help you start strong, grow fast, and make an impact.
What Is the Young Entrepreneurs Incentive?
Puerto Rico is betting on the next generation of business leaders. That’s why the Incentives Code devotes an entire chapter to supporting new businesses created and operated by young people. This isn’t just policy—it’s a launchpad for your entrepreneurial future.
This program replaces and upgrades previous laws, streamlining the benefits and making them easier and more attractive for today’s young founders.
Who Qualifies as a Young Entrepreneur?
To be eligible, you must:
- Be between 16 and 35 years old
- Be a resident of Puerto Rico
- Be a high school graduate
- Found and operate a new business in Puerto Rico
Note: Your business must be entirely new—not part of a reorganization or affiliated with any existing company.
Tax Benefits That Fuel Your Startup
Qualified young entrepreneurs can receive:
- 100% income tax exemption on the first $500,000 of net business income for the first 3 years of operations
- 100% exemption from personal property tax for the business during the first 3 years
- 100% municipal tax exemption for the same period
- (For entrepreneurs aged 16–26): A 100% personal income tax exemption on the first $40,000 earned from wages or services
Income over $500,000 and any dividends distributed from the business are taxed at the standard rates under the Puerto Rico Internal Revenue Code.
How to Apply
- Submit your application to the Puerto Rico Department of Economic Development and Commerce (DDEC)
- Sign a Youth Business Creation Agreement with the DDEC before launching operations
- Prepare your business plan and submit all documentation required under the Incentives Code regulations
Why Take Advantage of This Now?
Because there has never been a better time to start your business with zero tax pressure. The Young Entrepreneurs Incentive is designed to give you room to grow, save thousands in taxes, and build something that contributes to Puerto Rico’s future.
Ready to Launch? We Can Help You Every Step of the Way.
At Tax Law and Venture Services, we specialize in helping young entrepreneurs:
- Determine eligibility
- Prepare and file documentation
- Navigate the DDEC application process
- Receive full legal and tax support
Contact us today and turn your idea into a business backed by Puerto Rico’s top startup incentives.