PR doubled young entrepreneur tax incentives in 2025, slashed approval times
- The San Juan Daily Star
- 2 hours ago
- 2 min read
By THE STAR STAFF
The Department of Economic Development and Commerce (DDEC by its acronym in Spanish) doubled the number of young entrepreneur tax decrees approved in 2025, processing 1,041 applications -- 463 more than the previous year.
The surge comes after operational reforms that included full digitalization of the process and a significant reduction in documentation requirements, cutting average approval times from 302 days to just 89.
The initiative supports residents of Puerto Rico aged 16 to 35 who are launching new businesses, aligning with Gov. Jenniffer González Colón’s directive to “open doors of opportunity” and deliver faster, more efficient services, according to a statement issued Monday.
Under the Young Entrepreneur Decree, qualifying businesses receive a 100% exemption on the first $500,000 of net income, as well as property taxes and municipal license fees, for a period of three years.
“We are convinced that with the talent and drive of our youth and workforce, Puerto Rico’s economic development will be stronger than ever,” the governor said. “This support will continue expanding next year so that every good business idea becomes a reality.”
DDEC Secretary Sebastián Negrón Reichard emphasized the importance of speed.
“Government must move at the pace of business, not the other way around,” he said. “Cutting 213 days from processing means young entrepreneurs can start generating income faster without paying intermediaries to navigate a complex bureaucracy. We eliminated five of nine unnecessary documents, digitized the entire process, and set a goal of three months or less for approvals. When we reduce costs and remove red tape, we invest directly in the success of our entrepreneurs.”
Currently, there are 2,137 active young entrepreneur decrees from 2023 to 2025. Approvals have climbed steadily: 518 in 2023, 578 in 2024, and 1,041 in 2025 -- an average of 87 cases per month in 2025 compared to 55 in the previous year. Applications also rose from an average of 48 per month in 2023-2024 to 78 in 2025.
“The message is clear: when government removes obstacles, people respond by creating businesses,” Negrón said.
Among the businesses benefiting from the program are Guapollo Fried Chicken and Porkbelly Inc., IVITA LLC (intravenous vitamin therapy), Jazmín Tax Services LLC, Premier Transportation, Batch LLC (specialty baked cookies), and medical practices specializing in infectious diseases, dental surgery and multiple sclerosis.
Additionally, through its new initiative El Network, launched in August 2025, DDEC has provided training and tools to more than 1,000 young entrepreneurs. Workshops cover topics such as access to seed capital, permitting systems, and AI tools to optimize operations, aiming to guide entrepreneurs from idea to successful business.