The principal goal of International Financial Entities (IFEs) is to attract United States and foreign investors to Puerto Rico. IFEs are licensed and regulated by the Office of the Commissioner of Financial Institutions pursuant to Act No. 273 of September 25, 2012, as amended and Regulation No. 5653. The IFE Act offers tax incentives to IFEs that set up operations in Puerto Rico, subject to the licensing requirement and regulatory powers of the Commissioner.
Pursuant to the IFE Act, any person other than an individual, incorporated or organized under the laws of Puerto Rico, the United States or any other country, or any entity constituted as a unit of said person, may apply for a license to do business as an IFE.
See our summary of the applicable laws and regulations governing the establishment of IFEs in Puerto Rico that may be of interest to those seeking a general understanding of the organization and licensing process of an IFE, as well as the tax benefits offered under the IFE Act.