Puerto Rico's banks are often perceived as a "more easily accessible" option than those in the continental United States. For many, the view is that banks in Puerto Rico offer all the benefits, but require going through fewer hurdles than their U.S. counterparts.

Banks in Puerto Rico offer some services comparable to certain U.S. banks. However, for non-residents, U.S. banks may be more desirable after considering the options available in Puerto Rico. This is especially true because many U.S. banks are larger and more accessible.

Puerto Rico is one of those unique banking jurisdictions that can offer a lot of value to certain customers and should be avoided (if possible) by others. In other words, if you need to bank here, you should. 

Puerto Rico's banking is typically acclaimed by investors, residents, and anyone doing business locally. But you'll also notice another group of customers that's unique to Puerto Rico: the participants of Law 20 and Law 22 (and now Law 60).

In recent history, Puerto Rico made a name for itself after introducing incentive programs to attract foreign entrepreneurs and investors to the island. This includes Law 20 and Law 22, which were introduced in 2012.

These two prospective laws allowed the signing of direct tax agreements with the government of Puerto Rico. In doing so, they essentially eliminated personal tax obligations and drastically reduced corporate tax obligations to 4%. Not bad at all.

These two prospective laws allowed the signing of direct tax agreements with the government of Puerto Rico. In doing so, they essentially eliminated personal tax obligations and drastically reduced corporate tax obligations to 4%.

In 2019, Law 20 and Law 22 were merged and amended into a new incentive program, Law 60. Law 60 reduced some of the incentives available, but it is still very attractive to anyone looking to reduce their tax burden. Anyone who moved to Puerto Rico under Law 20 and Law 22 was protected in their pre-existing agreements.

Of course, there are individual requirements to maintain such a favorable tax status. No less important is to be a bona fide resident, live on the island six months a year, etc. And, with white sand beaches, crystal clear waters and streets full of palm trees, it is quite idyllic.

Obviously, there are other requirements you must meet if you enrolled in any of these incentive programs, including opening a local bank account. But, this is just one of the reasons why banks in Puerto Rico have been put in the spotlight.

Here's a quick overview of some of the catalysts that propel account openers to the island:

• Demand for non-CRS banking services as CRS globalizes
• Increased scrutiny of non-resident banking elsewhere
• Promotion of Puerto Rico as a jurisdiction of residence
• Prevalence of options for non-residents through IFE

Surely you wonder what relationship the banks in Puerto Rico have with the United States, it seems appropriate to emphasize that Puerto Rico is not a U.S. state. It is an unincorporated U.S. territory. This means that Puerto Rico has the same status as other U.S. territories. These include the U.S. Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands. So, technically, banks in Puerto Rico are not U.S. banks. But they share some of the benefits.

Foster Swiss' team of experts has carefully studied all the requirements and banks for opening accounts in Puerto Rico, that is why no one will provide you with the personalized advice we offer. We help you from the moment you choose the bank that best suits your requirements until after you have obtained the account, taking care of the entire process for you.

For more information on this topic or any requirement related to our services, you can contact us directly through info@fosterswiss.com