Puerto Rico is currently one of the favorite destinations within the offshore banking sector. The island is an associated state of the United States, which makes it a protected territory. However, it maintains the status of a permitted tax zone. The main advantages include no automatic CRS exchange, privacy, offshore banking, transactions, and US-protected status.

The country is also characterized for being part of the American greatness and at the same time having a Spanish colonial heritage that you can see in its architectural style, with colorful buildings where large hotel chains, casinos, restaurants, theaters, and tourist passages are located.

According to Moody's, Puerto Rico's banking situation is quite stable, as the agency considers that there is a strong capitalization and current liquidity in the banks, which provides a greater capacity to overcome economic challenges that may arise in the future.

Opening a bank account in Puerto Rico may be one of the best financial decisions you can make to achieve financial freedom. In a nutshell:

● Attractive tax rates.

● The island is an associated state of the United States, which makes it a protected territory.

● A strong financial sector with a regulation that follows U.S. standards.

● Competitive rates and fees compared with mainland U.S.Banks.

● Easy procedures and world-class advice provided by local banks.

● Puerto Rico is not part of the CRS Treaty.

In this article, we will tell you the extraordinary advantages of opening a bank account in Puerto Rico, one of the best destinations to do business and thrive in the Caribbean.

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Why Puerto Rico?

“La Isla del Encanto'' is one of the best destinations to open a bank account in the Caribbean because of the following reasons. In a nutshell:

● Bank account with guaranteed bank secrecy without CRS.

● Tax-free jurisdiction for non-residents.

● Strong financial system regulated and guaranteed by the US.

● Professional banks with online banking to perform any transaction and the possibility to request any type of banking service: Multi-currency accounts, credit cards, letters of credit, brokerage accounts, payment gateways, and consumer credit.

● Inexpensive bank account maintenance.

● Few requirements for the opening of personal and business checking accounts, fast opening times.Generally, your account will be open in 5 to 8 days, as long as you correctly provide the necessary requirements.

CRS arrangements in Puerto Rico

Puerto Rico is not part of the CRS bilateral automatic information exchange agreement. On October 29, 2014, the treaty for the automatic exchange of information on bank accounts opened by non-residents in other countries was signed in Berlin by 100 States. The United States is one of the countries that has not ratified the agreement.

Because of this, Puerto Rico has arisen in the last years as one of the best offshore destinations in the Caribbean. The island is under the protection of the United States; therefore, it has benefited from trade policy decisions that the US has taken in recent years.

The island is one of the few jurisdictions that does not report tax information to other countries. As a non-signatory to the CRS agreement, many financial analysts consider the country as a potential low-tax jurisdiction.

Laws and regulatory agencies

On the other hand, the government has fostered the creation of Banks and Financial Institutions of foreign capital through the "International Financial Center Regulatory Act". Puerto Rico aims to offer their products to foreign clients and consolidate as a main financial center in the Caribbean.

It should be noted that Puerto Rican banks are financial institutions located in jurisdictions that have strict legislations regarding privacy, political security and are free from standard tax requirements. Although they are located in the United States (remember that Puerto Rico is a Commonwealth), banks located on the island do not operate or are not legally governed as traditional banks. Therefore, they should not be confused with regular U.S. banks.

Thus, offshore banks on the island are not regulated by the Federal Reserve or the OCC (Office of the Comptroller of the Currency). These are supervised by the Puerto Rican government and the process is carried out by the Office of the Commissioner of Financial Institutions (OCIF).

In conclusion, if you are an individual or company and wish to conduct an international business or move your funds to an offshore destination, you will not be committing a crime or circumventing the law. You can safely choose Puerto Rico as your offshore destination. The main requirement is that you are not an American. 

Privacy and secrecy of banking laws

First of all, according to Puerto Rican law, offshore banks are not subject to the Automatic Exchange of Information Protocol and the Common Reporting Standard (AEoL/CRS). What does this mean? Financial institutions are responsible for sharing customer account information with foreign government entities, including U.S. agencies (which makes Puerto Rico bank accounts ideal for financial privacy). 

On another hand, there is the Privacy and Data Protection Act which protects users from being victims of identity fraud or publication of their private information. The legislature seeks that most of the data provided by individuals or corporations to financial entities remain completely confidential, preventing it from being forged, shared, or sold to third parties. 

Our partner in Puerto Rico

Our banking partner on the island is a financial institution operating since 2009. It offers a series of financial solutions according to the needs of all its clients through personal attention by means of its Relationship Executives. They are in charge of assisting future and potential clients from any corner of the world where they might be.

The purpose of our ally is to offer a proactive approach with a technologically advanced, highly confidential, and transparent environment. It complies with all the regulatory frameworks deployed by the OCIF (Office of the Commissioner of Financial Institutions) and banking laws of the United States. 

On the other hand, this bank has certifications and alliances with banking associations such as Puerto Rico International Bankers Association, Florida International Bankers Association, Puerto Rico Bankers Association, and Adtalem Global Education Company.

Services

Our partner's mission is to facilitate access to international banking, provide personalized attention, offer services and products adapted to the requirements of each case and offer competitive interest rates in the market. 

Thus, our partner, being a commercial bank, offers to its potential clients:

For Individuals

- Checking account (minimum opening amount and monthly balance: 500 dollars).

- Savings account (minimum opening amount and monthly balance: 1000 dollars).

- Minor's account

- International Transfers

- Debit cards

- Credit cards

- Certificate of deposit

- Institutional alliances for educational loans

For Companies

- Checking account (initial opening amount and monthly account balance: $10,000)

- Entrepreneur account

- Payroll account

- International transfers

- Term loans (with a duration from 1 to 3 years)

- Bridge loan (with a duration from 3 months to 1 year)

- Escrow account (minimum deposit of $10,000)

- Prepaid card

- Debit card

- Credit card

- Certificate of deposit

Opening bank accounts with our banking partner can take between 5 to 8 business days. However, cryptocurrency deposits are not currently available. On the other hand, being a commercial bank, this institution does not work with family offices nor does it provide wealth management services.

Opening an account with our Puerto Rican Ally:

This process will vary among individuals and companies. In the case you are an individual, you only need to submit to the bank: 

● Photocopy of a valid identity document with photo, duly issued by an official agency.

● Photocopy of the tax registration or one (1) receipt of public or private service, corresponding to the country of residence, not older than 90 days after issuance.

● Certification of income or proof of employment, not older than 90 days after issuance (only if applicable).

For corporate accounts:

● Incorporation documents or bylaws in force according to the jurisdiction.

● Last minutes of assembly where modifications of capital and administrative regime are verified.

● Photocopy of the current tax registration according to the country of residence.

● Photocopy of the last closing balance sheet signed by a public accountant (only if applicable).

● Current and legible photocopy of a valid photo ID of the beneficial owners with more than 10% of ownership, signatories, legal representatives, directors, and administrators.

● Detailed organization chart with the percentage of participation of all natural and legal shareholders (only for companies with complex shareholding structures).

FAQ Section

How much time does it take to open an account with our ally?

The time to open accounts in this bank takes between 5 to 8 business days.

What are the advantages of opening a bank account in Puerto Rico and starting a business there?

As a non-U.S. citizen, you can benefit from the banking secrecy offered by the financial institutions of this country. In addition, being located in the Caribbean, you will have a base that will allow you to operate between the United States and other countries in the region.

What about the tax incentives?

In recent times many companies have moved to Puerto Rico to take advantage of the attractive tax incentives stipulated in the Export Services Act, Act 22; Individual Investors Act; and Act 273 (International Financial Regulation Act).

These laws offer much lower tax advantages than those of other countries in the region or even in the U.S. mainland. For example, a financial services provider such as a bank will be subject to a corporate tax rate of only 4% 

This is not the case of states like Florida, where the percentage is 5.5%, according to the Tax Foundation Organization.

Is Puerto Rico a favorable environment for foreign investors?

Yes. In fact, Puerto Rico has experienced a significant increase in interest from international investors, accompanied by an increase in foreign direct investment (FDI). According to World Bank data, the yearly FDI inflow represents 25% of the GDP. That is about USD 25 billion every year. 

This inversion comes from countries such as Canada, Germany, Mexico, and Spain. The most popular sectors for investment are the telecommunications industry, software and computer services, food and beverages, and manufacturing.

Can I benefit from the U.S. trade policies while in Puerto Rico?

The vast majority of Puerto Rico's foreign trade is with the U.S. mainland, and U.S. participation in a number of free trade agreements provides local businesses with preferential access to numerous important markets in the region, such as Canada, Colombia, Dominican Republic, and Mexico.

Who we are and what can we do for you?

Mundo was born six years ago from the oldest trust company in Nevis. Both our parent company and Mundo have offices and partners globally offering a comprehensive business management system for individuals and corporations.

Our team of experts offers personalized services tailored to the requirements and budgets of each potential client. We want our clients to achieve financial freedom and work every day for it.

Puerto Rico is an emergent destination for global banking. Opening an account there means that you will safeguard your patrimony in a jurisdiction that offers privacy and direct access to the US financial system.

Our partners are a top financial institution founded in Puerto Rico in 2009. They offer world-class advice so you can open the bank account that best fits your profile and needs.

With one click you will be receiving the best information and attention you can find when it comes to financial advisory services in Puerto Rico.

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