Puerto Rico doubles young entrepreneur tax decrees in 2025
Puerto Rico’s Department of Economic Development and Commerce (DDEC, in Spanish) reported a sharp increase in the number of young entrepreneur tax decrees issued in 2025, approving 1,041 applications, more than double the total from the previous year, following internal reforms that shortened processing times.
The agency said approvals rose by 463 compared with 2024, while average processing time fell to 89 days from 302 days. The changes were aimed at speeding access to incentives for entrepreneurs ages 16 to 35 who are starting or expanding businesses in Puerto Rico.
The young entrepreneur decree provides a 100% tax exemption on the first $500,000 in net income generated by a new business, as well as exemptions from property taxes and municipal license taxes during the three-year incentive period.
DDEC Secretary Sebastián Negrón attributed the increase to operational changes, including digitizing the application process and reducing documentation requirements.
“Government needs to move at the speed of business, not the other way around,” Negrón said. “Reducing processing time by 213 days means young entrepreneurs can start generating revenue faster, without having to spend money on consultants to navigate a complex bureaucratic process.”
He said five of nine documents previously required were eliminated, and a target was set to process applications within three months or less.
Between 2023 and 2025, the department reported 2,137 active young entrepreneur decrees. A total of 518 were approved in 2023, followed by 578 in 2024 and 1,041 in 2025, averaging 87 approvals per month last year.
Businesses benefiting from the program include restaurants, bakeries, transportation companies, accounting firms, medical practices and wellness service providers.
The department also highlighted its El Network initiative, launched in August, which has reached more than 1,000 young people through workshops focused on seed capital, permitting processes and the use of artificial intelligence tools for business development.
