PUERTO RICO Trends and Developments Contributed by: Amanda Billoch-Vázquez, Antonio Pietrantoni, Manuel del Valle and Iván Marrero, Pietrantoni Mendez & Alvarez LLC
Act 60 for businesses and individuals involved in the tourism industry are designed to promote the devel - opment, construction and improvement of tourism- related projects, including hotels, resorts and other tourism infrastructure. Reshoring opportunities Recent federal policies have made reshoring a top economic and strategic priority for the United States, particularly in response to supply chain vulnerabili - ties revealed by the COVID-19 pandemic and evolv - ing geopolitical tensions. Initiatives such as height - ened tariffs on critical imports, targeted incentives for domestic manufacturing and efforts to streamline regulatory approvals – especially in the pharmaceuti - cals and hi-tech sectors – have significantly increased the appeal of relocating key production activities back to US jurisdictions. These measures are designed to reduce reliance on foreign suppliers and reinforce national supply chain security, driving a renewed wave of investment in domestic manufacturing infrastruc - ture. Puerto Rico stands out as a valuable destination for companies seeking to take advantage of this reshor - ing trend. As a US territory, it provides seamless, tariff- free access to the mainland market while offering a legacy of advanced manufacturing expertise, particu - larly in the pharmaceutical, biosciences and medical device industries. The Island features a robust, bilin - gual workforce, modern logistics infrastructure and a wide range of competitive tax and development incen - tives. In 2024, Puerto Rico exported USD24.7 billion in goods, with USD20 billion from pharmaceuticals alone, highlighting its established capacity and strate - gic role within US supply chains. For companies seek - ing cost-competitive alternatives for complying with federal requirements and maximising supply chain resilience, Puerto Rico presents an ideal platform for reshoring and expansion. Strategic opportunities in infrastructure and climate resilience Puerto Rico has significant opportunities to strengthen its economic outlook through strategic investments, leveraging its unique position within the US framework to attract capital and innovation. Key areas include
modernising infrastructure and enhancing resilience to climate change. Infrastructure development is central to Puerto Rico’s competitiveness. Investments in transportation, tel - ecommunications and public utilities can unlock the Island’s economic potential and improve the quality of life of its residents. Recent initiatives indicate progress toward upgrading critical assets, creating a founda - tion for future growth and connectivity. Climate adaptation is another area where Puerto Rico can advance. While climate change presents chal - lenges, such as more frequent extreme weather and coastal erosion, it also opens the door for innovation in resilient design and sustainable practices. By inte - grating these approaches, Puerto Rico can position itself as a leader in climate-conscious development, attracting partners and investors committed to long- term value creation. Alternative business structures for law firms The Supreme Court of Puerto Rico’s recent amend - ment to the Rules of Professional Conduct for law - yers, effective 1 January 2026, introduces Rule 5.4 (b), which allows non-lawyers to hold up to 49% ownership in law firms, subject to certain safeguards designed to protect professional independence. This development opens the door to new investment and operational models for law firms based in Puerto Rico. Experiences in other jurisdictions suggest that alter - native business structures can foster innovation and help firms secure funding for technology, cybersecu - rity and process improvement. However, these changes may also raise new regula - tory and ethical considerations. Whether this reform will reshape competition or improve access to justice will depend on how firms and investors navigate these challenges, and further clarifications may be needed as the rule is tested in practice. Rule 5.4 (b) provides that the Puerto Rico Supreme Court will review the rule’s effectiveness within three years, underscoring that additional adjustments may follow as the market responds. For now, the rule signals a cautious open - ing, and its long-term implications for Puerto Rico’s legal market are still unfolding.
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