Puerto Rico: A Hidden Gem for Entrepreneurs and Investors

Once overshadowed by economic struggles, Puerto Rico is now undergoing a remarkable transformation. Known for its natural beauty, cultural heritage, and, most importantly, advantageous tax incentives, the island is becoming a premier destination for entrepreneurs and investors. 

Puerto Rico’s rejuvenation has been fueled by visionaries like Daven Michaels, whose work highlights the island’s emerging potential. Throughout this blog post, we will talk about how entrepreneurs are succeeding in Puerto Rico, the benefits of living and investing in the island, and how Daven has contributed to the island’s renaissance.

Daven Michaels: A Catalyst for Change

Daven is an entrepreneur, an author, and a champion of Puerto Rico’s economic development. He made his name in the entertainment industry, but his entrepreneurial ambitions eventually led him to create 123Employee, a global virtual staffing company. As a result of his success in outsourcing, he has become an influential voice in the promotion of Puerto Rico as a business haven.

A particular reason Daven’s story is inspirational is because of how indirectly he influenced notable figures, like Russell Brunson, creator of ClickFunnels. In recognition of business owners who generate over $1 million in sales using ClickFunnels, Brunson established the Two Comma Club Awards. This anecdote illustrates how entrepreneurs can contribute to each other’s success, demonstrating how success is interconnected.

The Benefits of Living in Puerto Rico

There is more to Puerto Rico’s transformation into an entrepreneurial hub than just personal success stories. For business owners and investors, the island offers tangible financial advantages.

Tax incentives.

Puerto Rico offers a favorable tax structure, which makes living there an attractive option. As a result of the Act 60 tax incentive, U.S. citizens residing in Puerto Rico can enjoy a federal income tax rate as low as 4%, as well as zero taxes on capital gains and dividends. In particular, high-net-worth individuals and entrepreneurs seeking to maximize their earnings benefit from these tax breaks.

Opportunity zones.

It is also important to note that Puerto Rico is an Opportunity Zone. For property investors and developers, this initiative offers substantial tax benefits. In fact, 97% of Puerto Rico qualifies as an Opportunity Zone, meaning that prime real estate areas are eligible for these tax breaks. As a result of this program, the island has become a hotbed for real estate investment, attracting attention from developers worldwide.

A business-friendly environment.

Additionally, Puerto Rico’s government has been proactive in fostering a business-friendly environment. Aside from tax breaks, the island offers incentives aimed at specific industries, such as entertainment, sustainable energy, and technology startups. Electric vehicle owners, for example, can import their vehicles with no import tax. Puerto Rico also offers filmmakers a 40% tax credit, which attracts productions from all over the world. As a result of family connections in the entertainment industry, Daven himself filmed an Amazon pilot on the island.

By facilitating these efforts, Puerto Rico’s economy grows and businesses can thrive.

An affordable cost of living.

Although living costs have increased in recent years, Puerto Rico is still an affordable place to live compared with many parts of the continental United States. Due to its low cost of living and beautiful landscapes, the island attracts entrepreneurs and remote workers.

Opportunities for Entrepreneurs in Puerto Rico

There is more to Puerto Rico than its tax benefits and business-friendly policies. Its growing entrepreneurial ecosystem offers startups, remote workers, and investors exciting opportunities.

Haven for remote workers.

In the era of remote work, Puerto Rico has established itself as an ideal destination for digital nomads and entrepreneurs. For those seeking a balance between work and lifestyle, the island is the perfect place because of its low taxes, picturesque scenery, and high-speed internet access.

There is a thriving startup scene.

There is a flourishing startup ecosystem in Puerto Rico. Across the island, co-working spaces, accelerators, and networking events are helping entrepreneurs find the resources and connections they need. In this community, collaboration and innovation are fostered.

Real estate goldmine.

Puerto Rico’s real estate market is diverse and bursting with potential. Property developments, affordable housing, and beachfront properties all offer investment opportunities. Many investors are looking forward to Puerto Rico’s potential to be the next big market in real estate due to its tax incentives for property development and rehabilitation.

Surrounding Yourself with A-Players

Daven also emphasizes the importance of surrounding yourself with high-caliber people. As a result of living in Puerto Rico, he has been able to network with ultra-high-net-worth individuals, who have become friends and business partners for him. By continually learning from peers and colleagues who have achieved great success, he stresses the importance of “playing the game of business at a higher level.” In Puerto Rico’s entrepreneurial culture, this is essential.

Puerto Rico: A Renaissance in the Making

A resurgence in Puerto Rico’s economy is not the first time it has experimented with economic innovation. In the 1950s and 1960s, the island was known for pioneering tax incentives that attracted pharmaceutical manufacturing industries. Due to Puerto Rico’s unique natural resources, such as its pure water supply, it has become a hub for the production of legal drugs. Although these efforts eventually waned, Puerto Rico’s resilience remains evident.

Over the last few years, the island has faced significant financial challenges, culminating in its declaration of bankruptcy. The tides have turned, however. As a result of FEMA relief and the settlement of its bankruptcy, Puerto Rico is well-positioned for rapid growth and prosperity in the future.

A New Wave of Opportunities

A new wave of attention is being paid to Puerto Rico today. Due to its favorable tax policies and vibrant innovation ecosystem, entrepreneurs, investors, and developers are flocking to the island. As a leader of this charge, Daven is working to bring attention to the island’s potential.

Among Daven’s most exciting initiatives is the San Juan Social Club, a community he founded for entrepreneurs to network and collaborate. With over 1,000 members, the group now hosts monthly events that bring together business leaders and philanthropists.

The San Juan Social Club Cruise

Following the success of the San Juan Social Club, Daven launched the San Juan Social Club Cruise. This unique 7-day luxury cruise brings together Puerto Rico residents and people considering moving to the island, who are looking to get more involved in what Puerto Rico has to offer.

Giving Back: A Commitment to Community

A key component of Puerto Rico’s entrepreneurial landscape is philanthropy. As a local business leader, Daven is committed to giving back to the community. In addition to donating thousands of toys to orphans, the San Juan Social Club has raised hundreds of thousands of dollars for local charities. As a result of this culture of giving, Puerto Rico’s growth benefits everyone.

Conclusion

There is a renaissance taking place in Puerto Rico. A hidden gem for entrepreneurs and investors, it combines a rich history, progressive policies, and a commitment to community. Increasingly visionary individuals such as Daven are relocating to and investing in Puerto Rico, demonstrating that the island is not just recovering, but is poised to become a major global player.

Key Takeaways:

• Puerto Rico’s economic revival. As a result of favorable tax incentives, natural beauty, and a growing entrepreneurial ecosystem, the island is undergoing a significant transformation.
• Tax benefits. Tax advantages in Puerto Rico include low-income tax rates, capital gains exemptions, and Opportunity Zones.
• Business-friendly environment. Business-friendly policies have been implemented by the island’s government, including incentives for specific industries and an entrepreneur-friendly environment.
• Opportunities for entrepreneurs. There are many opportunities for entrepreneurs in Puerto Rico, including remote work, startup ventures, and real estate investing.
• Community and collaboration. With initiatives like the San Juan Social Club that promote networking and giving back, the island fosters a culture of collaboration and philanthropy.

Featured Image Credit: Molly Champion; Pexels: Thank You!