PUERTO RICO FILM TAX INCENTIVES

If you are planning on filming in Puerto Rico for your upcoming project, you could be eligible for various tax incentives and economic benefits that are offered under the Puerto Rico Tax Incentives Code. Our experienced team can efficiently handle the entire application process, manage government relations, and assist with tax credit placement and monetization to ensure you maximize your benefits.

QUALIFYING PROJECT TYPES

  • Feature Films

  • Short Films

  • Documentaries

  • Commercials

  • Video Games

  • Music Videos

  • Series, Mini-Series, including pilots

  • TV Programs, including reality shows

  • Stand-Alone post productions

  • Film Festivals

  • Live Events

INCENTIVES BREAKDOWN

  • 40% of payments to Puerto Rico residents

  • 20% of payments to non-residents

  • 15% of payments to Puerto Rico residents when a local producer controls the intellectual property, manages financing and production, and is entitled to at least 30% of the producers’ net profits

PLACEMENT AND MONETIZATION

  • Tax credits typically sell for about 90% of their face value, varying based on supply and demand, the taxable year of the credit, the timing of the sale within that year, and the credit amount being sold.

  • Tax credits can offset 100% of an individual’s tax liability, enhancing their value.

  • Bona fide buyers are not subject to recapture.

PREFERENTIAL TAX RATE

  • 4% fixed income tax rate

  • 100% exemption on dividends and distributions

  • 100% exemption on municipal license taxes, excise taxes, and other municipal taxes

  • 75% exemption on state and municipal property taxes

  • 75% exemption on municipal construction taxes

Contact CereProds today using the form below to discuss your next Puerto Rico project. Our producers are prepared to assist with the incentives application and disbursement process, as well as all other project requirements.