Johnny Depp’s “Pirates of the Caribbean” series dropped anchor on the pristine coasts of one of our tiny islets, Palominito

The perfect setting for big-screen productions

By Peter Martin 1352 0

Puerto Rico is one of those destinations that for years has been a magnet for film and television productions. And the reason is simple: its pristine beaches, rustic cave formations, lush rainforest, inland beauty, urban neighborhoods, historic cobblestone streets and notable architecture.

2019

Puerto Rico is one of those destinations that for years has been a magnet for film and television productions. And the reason is simple: its pristine beaches, rustic cave formations, lush rainforest, inland beauty, urban neighborhoods, historic cobblestone streets and notable architecture. One of the most magical effects about movies is their ability to transport viewers to new locations and make them feel as if they were part of those settings and Puerto Rico provides those picture perfect sceneries that can represent locations from anywhere in the world.

In the last decade, Puerto Rico has drawn scores of local and off-island producers who scout ideal backdrops for their films all over the San Juan metropolitan area, coastal towns such as Ceiba and Fajardo, as well as our island municipalities of Vieques and Culebra, just to name a few of the favorite spots that tend to garner audience attention and fanfare – quickly becoming tourism hot spots.

Important as well is the local talent — professional, technical and support staff, and actors — which movie producers have bestowed the distinction of being some of the best in the business.

Blockbuster Hollywood films such as “Runner, Runner” — starring Ben Affleck and Justin Timberlake — filmed scenes inside the iconic El San Juan Hotel in Isla Verde with its emblematic lobby chandelier, hand-carved Mahogany and spectacular ocean views – as well as several installments of Johnny Depp’s “Pirates of the Caribbean” series, which dropped anchor on the pristine coasts of one of our tiny islets, Palominito.

“Our Brand is Crisis,” starring Sandra Bullock, rolled in Puerto Rico in 2014 on the urban streets of Rio Piedras, the central mountains of Naranjito and the beautiful coastlines of Fajardo and Ceiba. Meanwhile, Adam Sandler has also headed several projects for Netflix on the island, including “The Do-Over,” (2016) which he co-starred with David Spade. More than once, the duo was seen filming in Old San Juan, which has served as a set for countless other movies with its brightly colored Spanish colonial houses and blue 
cobblestone streets.

Most recently, Affleck returned to the island, joining Anne Hathaway in the upcoming Netflix original film “The last thing he wanted,” which selected several locations on the island during its production process in 2018, including the Julio Enrique Monagas National Park in Bayamon – a 200-acre nature respite for families and adventurers. Netflix also shot “She’s gotta have it,” and “Nicky Jam, El Ganador,” which will also airs on Telemundo in 2019.

  • District Live! is a multi-million dollar innovative entertainment center being developed next to the Convention Center in San Juan.
  • Blockbuster Hollywood film “Runner, Runner” starring Ben Affleck and Justin Timberlake filmed scenes in San Juan.
  • Johnny Depp’s “Pirates of the Caribbean” series dropped anchor on the pristine coasts of one of our tiny islets, Palominito

 

Sony Crackle also saw Puerto Rico’s potential, filming the first two seasons of its multi-episode series, “The Oath,” which rolled in Old San Juan, Rio Piedras and Punta Las Marias (part of the Ocean Park beach community) in 2018. Season two is set for a February 2019 release.

Local big-screen productions also made some noise in 2018, with the back-to-back filming of the “Domirriqueños 2 and 3,” which received incentives from the Puerto Rico Film Development Fund.

That allure remains very much alive and will likely gain additional momentum in years to come thanks to a combination of new film production studios under construction in San Juan and incentives available from the Puerto Rico Film Commission and other agencies.

The agency oversees the Puerto Rico Film Industry Economic Incentives Act, which was enacted to solidify Puerto Rico’s position as one of the leading jurisdictions for the production of film, television, and other media projects. The Act provides tax exemptions and tax credits to businesses engaged in film production in Puerto Rico.

Another draw in coming years will be the $136 million Puerto Rico Film District complex at the Isla Grande sector of San Juan, a proposition by British businessman Keith St. Clair to continue drawing the eyes of the production world to the island.

Currently under construction, the 46-acre campus is adjacent to the Puerto Rico Convention Center and the District LIVE! entertainment complex to be built with a bustling Time Square-esque atmosphere. The Puerto Rico Film District will include a 180,000 square-foot facility that will house five sound stages, administrative offices, conference rooms, post production and editing rooms, fitting rooms and a film school, St. Clair explained.

“The important aspect of the project is its location. The Puerto Rico Convention Center District is strategic real estate for groups and conventions and the integration of that complex will balance the visitor’s experience,” said Noelia García, deputy director of the Convention Center District.

A new component, a 300-room hotel, has been added to the blueprint at the request of the government, adding that there is the possibility that the project will also include a 1,000-seat theater to draw permanent shows, much like what takes place on Broadway in New York City.

The first elements of the complex should open in late 2020 and the full project should be completed in 2022. If St. Clair builds the hotel first, it will be likely open in December 2020.

So while relaxing on the beach or shopping in the Old City, you never know what Hollywood A-lister you may spot!

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An investment paradise between the Americas

By Peter Martin 3444 0

What do billionaire hedge fund managers, A-list actors, and Sotheby’s have in common? They’re all taking advantage of a pair of new laws designed to give investors a safe haven for their income, while boosting Puerto Rico’s economic development.

2017
Milla de Oro in Hato Rey.
Milla de Oro in Hato Rey.

What do billionaire hedge fund managers, A-list actors, and Sotheby’s have in common? They’re all taking advantage of a pair of new laws designed to give investors a safe haven for their income, while boosting Puerto Rico’s economic development.

New laws gives investors a safe haven for their income.

Dozens of high net worth investors have flocked to Puerto Rico in recent months to take advantage of the incentives created in 2012 by Laws 20 and 22.

In the island’s financial district, Hato Rey, law firms are receiving calls from interested investors from around the world. “Clients can’t believe the benefits. There is a tremendous amount of interest,” said one corporate attorney.

Law 22 also known as the “Individual Investors Incentives Act” offers residents of Puerto Rico 100-percent tax exemption on income taxes from all dividends; on income taxes from all interest; and income taxes from all short-term and long-term capital gains accrued after the individual becomes a resident.

Dividends and interest income earned by Puerto Rico residents on U.S. securities are generally taxed by the federal government, but capital gains taxes on their sales are based on residence.

That makes Puerto Rico the perfect place to relocate if you are a successful U.S. business person wanting to sell a business or investment portfolio, since you will essentially avoid taxation on the profits.

To take advantage of this break from U.S. federal income taxes, investors must move here and become a part of the local community. They have to be here at least 183 days a year and pass “closer connection” tests to prove they are bona fide members of the Puerto Rico community. These include that an investor’s spouse must live here, and minor children go to school on the island.

Although part of the U.S., Puerto Rico has fiscal autonomy and operates in a separate tax jurisdiction. The unique interplay between island and federal tax laws create the conditions that create this investment paradise.

For example, U.S. residents don’t have to renounce U.S. citizenship when taking advantage of these Law 22 tax benefits offered to those who establish residency in Puerto Rico, which exempts income from passive investments. That means they are not obligated to pay the 23.8% existing tax on unrealized capital gains when moving to the island that they would have to pay if moving to a foreign country.

What’s the cost of paradise? You’ll save almost $240,000 on every $1 million you earn from your investment, by forgoing the 23.8% tax rate on unrealized capital gains, whether from the sale of stock, businesses or real estate.

Foreign residents and investors who establish residency in Puerto Rico will also benefit from generous tax treatment, which includes shielding them from the imposition of federal taxes while offering them U.S. visas in exchange for investments.

Legendary hedge fund manager John Paulson has opted to remain a New Yorker, but invested in the Bahia Beach resort in Rio Grande after analyzing the incentives, and said he’s considering more investments.

The companion Law 20 offers a rock bottom 4% tax rate if companies bring their professional services to the island, and export those services. Several have opened branches of their businesses on the island in the areas of technology, investment, law, and accounting in order to take advantage of the Law 20 incentives.

Best of all, each investor that applies under the program gets a rock-solid tax decree guaranteeing the tax exemption for 20 years. That’s about as close a guarantee of sunny, fantastic weather on your tropical sojourn as you can get.

One of the Law 20 investors is Nicholas Prouty, a hedge fund investor from Connecticut, who is investing close to $200 million in the real estate project in Puerto Rico and has become a proponent of a public park in Santurce and a public drive to get Puerto Rico’s best and brightest to return home.

There’s now a Sotheby’s real estate branch in Condado catering to this new and expanding class of residents, which also benefit from top notch healthcare, laser-fast travel and telecommunications connections and an infrastructure of luxury that includes yacht clubs and 5-star vacation retreats.

Puerto Rico’s laws resonate with international investors too, as they can benefit from the tax exemption on passive investments that Puerto Rico offers.

These investors can also take advantage of the U.S. government EB-5 (employment-based, fifth-preference category) Immigrant Investor Pilot Program in Puerto Rico, which grants U.S. visas to foreigners who make $500,000 investments that create jobs.

At least three EB-5 regional centers, which bring some preferential treatment including greater flexibility in complying with federal requirements, are being established in Puerto Rico.

One of them, the Iconic Caribbean Regional Center, is funding the Hard Rock Cafe’s re-launch in San Juan this year and expects to raise $50 million annually over the next four years from foreign investors for other projects

Puerto Rico’s exemption from federal taxes gives it an advantage over other U.S. destinations in seeking to attract EB-5 investors. Puerto Rico regional centers are focusing efforts on South America, luring millionaire investors from Colombia to Chile.

With the investment incentives, Puerto Rico is finally living up to its name becoming a low-tax paradise.