Puerto Rico's tax incentive policies are drawing renewed attention as lawmakers consider changes that could affect new resident investors, including a proposed 4% tax rate for arrivals after January 1 and an extension of the incentive period through 2055. The proposals reflect an ongoing effort to balance the island's appeal to outside capital with public revenue and broader economic development goals.
For Alberto Bacó-Bagué, former Puerto Rico secretary of economic development and founder of the Partnership for Modern Puerto Rico (PMPR), the discussion also raises a longer-term question: How can incentives contribute to opportunities for people who already live on the island? His perspective draws on decades in public service, investment, and business leadership, with an emphasis on connecting incoming resources to local economic participation.
