Puerto Rico: Law 27 - Law for the Development of the Film Industry


Type of incentiveTax Credit
Qualifying formats
  • - Feature film - fiction (theatrical)
  • - Feature film - documentary (theatrical)
  • - TV Film or TV series - fiction
  • - TV Film or TV series - documentary
  • - Short films
Qualifying productions
  • - National productions
  • - Foreign productions
  • - Co-productions


Benefit as a % of spend20.00
Financial cap per production-
Do I have to register/set up a company?Yes
Does foreign cast/crew paid in their home country/region qualify as expenditure? No
Do foreign cast/crew have to pay tax in the host country/state/region? Yes
Does travel to/from country/region qualify as expenditure? No
Can a production qualify for other national incentives such as cultural programmes if it qualifies for this incentive? No
Criteria to access the benefit
  • - Minimum percentage of the film that must be shot in the region: 50.00%
  • - Minimum spend 1000000 (in local currency)
  • - Use Local cast & Crew
When will the benefit/incentive be received?
  • - On submission of audited accounts
  • - State approx. number of months after completion of audited accounts
Additional incentives or advantages
  • - Rece tour assistance, location finding service
  • - Free use of buidings/facilities/services within jurisdiction
  • - 40% production tax credit on all payments to Puerto Rico Resident companies and individuals. 20% production tax credit on all payments to Qualified Nonresident individuals. Persons engaged in qualifying film projects are eligible for the following preferential tax rates or exemptions: - fixed income tax rate of between 4% and 10% - 100% exemption on dividend taxes - 90% exemption from municipal and state taxes on property - 100% exemption from municipal license taxes, excise taxes and other municipal taxes Most filming industry transactions are tax free since they are considered business to business transactions which are sales tax free by law. Puerto Rico also offers tax waivers for government taxes on hotel rooms.