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Tax Exemptions Granted by the Tourism Company to the Esencia Project

CPI PR

Created on October 8, 2025

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Tax Exemptions Granted by the Tourism Company to the Esencia Project

Cabo Rojo Land Acquisition LLC will receive preferential treatment on seven taxes for 10 years as part of the Esencia project. Click on each circle to learn more.

Source: Master Concession of Tax Exemptions and Tax Credits 20-74-T-43 (A-1)

Type of Exeption: Taxes on Articles of Use and Consumption - Sales and Use Tax Detalles: The developer shall enjoy an 100% tax exemption from the payment of sales and use taxes with respect to articles that are acquired and used in the development, construction, or operation of the tourism activity (levied under Sections 4020.01 and 4020.02 of Subtitle D and Sections 4210.01 and 4210.02 of Subtitle DDD of the Puerto Rico Internal Revenue Code.) Duración: 10 years from June 20, 2022

Type of Exemption: License Fees, Excise Taxes, and Other Municipal Taxes Details: The developer shall be 100% exempt from the payment of any license fees, excise taxes, and other municipal taxes with regards to the tourism activity that are levied pursuant to any ordinance of any municipality. Duration: 10 years from July 1, 2022

Type of Exeption: Income Tax Detalles: 90% exempt from payment of income taxes on income derived from the tourism activity and the reinvestment thereof in other tourism activities. The exemption includes the dividends distributed by concessionaires; and any gain derived from the sale or exchange of the membership interest in concessionaires. Duración: 10 years from the date that the Tourism Activity initiates operation

Type of Exeption: Taxes on Articles of Use and Consumption - Excise Taxes Details: The developer shall be 100% exempt from the payment of taxes with respect to articles that are acquired and used in the development, construction, or operation of the tourism activity (levied under Subtitle C of the Puerto Rico Internal Revenue Code.) Duration: 10 years from June 20, 2022

Type of Exemption: Municipal and Government Taxes on Personal and Real Property Details: Developer's property used in the operations of the tourism activity shall be 90% exempt from any municipal and state Government taxes on personal and real property. This exemption covered 37 land parcels with their pin numbers listed in the First Amendment of the Master Concession. Duration: 10 years from January 1, of the year that the Tourism Activity initiates operation

Type of Exeption: Fuel Tax Details: All exempted businesses shall be entitled to an exemption of 100% for the payment of all petroleum products (excluding residual no. 6 or bunker C) and any other hydrocarbon mixture (including propane and natural gas) used as fuel in the generation of electricity or thermal energy in connection with tourism. Duración: 10 years from the date that the Tourism Activity initiates operation

Type of Exemption: Municipal Construction Excise Taxes Details: The developer, as well as any of its contractors or subcontractors, shall be 100% exempt from the payment of any municipal construction excise taxes with regards to the tourism activity that are levied pursuant to any ordinance of any municipality. Duration: 10 years from May 21, 2022