The Smartest U.S. Market Entry No One Is Talking About

MARKET ENTRY INSIGHTS

Why the most prepared companies start in Puerto Rico

I was born in Puerto Rico. Not as a biography but as context.

Everything I’m about to share comes from knowing this market: growing up there, building a career in the island and in the mainland, and spending nearly two decades helping companies navigate it.

For those who may not be familiar, Puerto Rico is a U.S. territory. Its residents are U.S. citizens. Businesses operate under U.S. federal law, FDA regulations, and the full protection of the U.S. legal system. Products made here can carry the “Made in USA” label. And yet, for many mainland companies, it remains one of the most overlooked growth opportunities in the U.S. market.

That gap won’t last forever. The companies that move now, before the market becomes saturated, gain something you can’t buy later:

• A real proof of concept

• Trusted relationships

• True bilingual, bicultural operational fluency

• What Puerto Rico Really Is (and Why It Matters)

"Puerto Rico does not just open doors in the Caribbean. For the companies that enter it correctly, it opens doors everywhere." -Arminda "Mindy" Figueroa-, Founder & CEO, L2L Marketing

The Foundation: What Puerto Rico Actually Is

Before strategy or incentives, let’s simplify the fundamentals:

U.S. Territory	It’s the U.S. No customs, no foreign currency, no separate regulatory system. Same federal laws, same protections.
Bilingual	It’s bilingual by default English and Spanish are part of daily business. That’s a rare advantage for companies targeting both U.S. and Latin American markets.
Federal Law	It’s all governed by U.S. Federal frameworks Contracts, IP protection, labor law, environmental standards
"Made in USA"	It’s “Made in USA” A major credibility and compliance advantage in industries like pharma, medtech, and manufacturing.

Where the Opportunity Is: Life Sciences & Clinical Research

Puerto Rico isn’t becoming a bioscience hub, it already is.

• Over $53 billion in annual biopharma exports

• More than 13% of total U.S. pharmaceutical exports

• 80,000+ jobs supported by the sector

Global pharmaceutical companies have been here for decades—and they’re still investing. But the real opportunity for new entrants goes beyond manufacturing:

• Clinical trials

• Health technology pilots

• Provider engagement

• Diagnostics and innovation

$53B+ Annual biopharma exports -- more than any individual U.S. state

13.1% Share of all U.S. pharmaceutical exports (BLS, 2025)

80,000+ Jobs directly and indirectly supported by biosciences

Here is what that looks like in practice:

BIOSCIENCE  |  MARKET ENTRY & CLINICAL DISTRIBUTION Introducing a novel diagnostic technology to the Puerto Rico clinical market When a U.S.based biotech company developed a non-invasive diagnostic platform targeting a significant unmet clinical need, Puerto Rico represented an ideal first market: FDA-familiar physicians, a concentrated oncology and urology network, high insurance coverage rates, and an institutional willingness to engage with emerging science. L2L Marketing served as the on-the-ground market entry lead mapping the clinical landscape, building relationships with the specialist community, navigating healthcare providers procurement processes, and establishing the distribution infrastructure that allowed the technology to move from concept to active clinical use. The market did not open because of a brochure. It opened because the right conversations happened with the right physicians, in the right rooms, with the right introduction.

HEALTH TECHNOLOGY  |  AI PILOT BRAIN SCAN LAUNCH Piloting an AI-powered neurological assessment platform through Puerto Rico's wellness and healthcare ecosystem When an Israeli technology company sought to pilot an advanced AI brain health platform in Puerto Rico, the challenge was not the technology -- it was the ecosystem. L2L structured the pilot, identified the right clinical host within the island's wellness and integrative health community, aligned the provider adoption strategy, and ensured the platform was introduced with the institutional credibility that a market simultaneously innovation-hungry and relationship-dependent demands. The result was an active, operational pilot in a market that now serves as the proof of concept for broader rollout.

CLINICAL RESEARCH INFRASTRUCTURE  |  PRCCI Supporting the visibility and growth of Puerto Rico's leading clinical trials consortium -- and what it means for companies entering the life sciences market The Puerto Rico Consortium for Clinical Investigation (PRCCI) is one of the island's most strategically significant life sciences institutions: a non-profit network of leading academic and private clinical research centers, operating under full FDA regulatory alignment, partnered with Yale University and the NIH All of Us Research Program, and actively positioned as a globally recognized destination for inclusive, high-quality clinical trials. L2L's sustained communications and visibility work in support of PRCCI reflects a fundamental truth about this market: the organizations that anchor Puerto Rico's most important sectors are not background institutions. They are the front door. Knowing them  and being known by them changes what is possible from day one.

What makes Puerto Rico unique?

• FDA-aligned clinical ecosystem

• Highly concentrated physician networks

• Diverse patient population (critical for trials)

• Institutions like the Puerto Rico Science, Technology & Research Trust, that open doors fast

This is a market where innovation moves quickly if you enter the right way.

Construction & Infrastructure: A Once-in-a-Generation Window

Puerto Rico is undergoing a massive rebuild. More than $73 billion in federal funding is driving:

• Housing reconstruction

• Energy grid modernization

• Roads and infrastructure

• Public facilities

This isn’t short-term, it’s a multi-decade pipeline. Construction employment has already grown 28% in just a few years.

But here’s the reality:

• The companies winning today are the ones that built relationships early.

• In this market, trust comes before contracts.

$73B+ Total federal recovery funding committed to PR

2,725+ FEMA-funded construction projects active (2024)

28% Growth in construction employment 2021-2024

CONSTRUCTION & MANUFACTURING  |  FEDERAL MARKET ENTRY Positioning a U.S. manufacturer to compete in Puerto Rico's federal reconstruction pipeline When a U.S. manufacturing company recognized that Puerto Rico's reconstruction pipeline represented a meaningful market for their capabilities, they arrived with a strong product and no local presence. L2L Marketing is building their market entry architecture from the ground up: competitive positioning for federal procurement, stakeholder mapping across the prime contractor and agency landscape, identification of the local teaming partnerships that would create legitimate competitive advantage, and the strategic introductions that transforms an unknown firm into a credible market participant. In a procurement environment where trust precedes transaction, the difference between a capable vendor and a winning one is often the relationships that introduce them and how those relationships are made.

The Incentives—Simple, Not Complicated

Businesses (Act 60 / formerly Act 20)

• ~4% corporate tax for export services

• Individuals (Act 60 / formerly Act 22)

• 0% tax on certain capital gains

Federal advantage (IRC Section 933)

• Puerto Rico-sourced income can be exempt from U.S. federal tax (with proper structure)

ACT 60 / FORMERLY ACT 20 Export Services 4% Corporate Tax Businesses exporting qualifying services from Puerto Rico -- consulting, marketing, R&D, financial services, technology -- benefit from a 4% corporate tax rate and 100% exemption on dividend distributions. Decrees run 15 years with renewal options and are contractually protected against future legislative changes.

ACT 60 / FORMERLY ACT 22 Individual Investors 0% Capital Gains Bona fide Puerto Rico residents qualify for 100% exemption on local income taxes on dividends, interest, and capital gains accrued after establishing residency secured through December 31, 2035. Requires 183+ days annual residency, property ownership, and community investment commitments.

U.S. FEDERAL LAW IRC Section 933 PR-Source Exempt Under the U.S. Internal Revenue Code, income derived from Puerto Rico sources by bona fide residents is excluded from federal gross income. This is federal law not a Puerto Rico-only incentive. Properly structured, it creates a tax environment unavailable anywhere else in the domestic U.S. market.

Important: These benefits are real—but they’re built for people and companies who are actually operating on the island, not just relocating on paper.

The Most Underrated Advantage: The Workforce

This is where Puerto Rico truly stands out.

• Highly educated

• Fully bilingual

• Strong STEM pipeline

• More cost-efficient than major U.S. cities

Institutions like the University of Puerto Rico consistently produce top engineering and science talent, many of whom already work with global companies.

For companies building teams that operate across markets, this is a structural advantage not just a benefit.

UPR Mayaguez	Top 10% engineering school nationally (out of 1,723 ranked). Produces 600+ engineering graduates annually. The #1 engineering school in Puerto Rico and a leading feeder institution for the island's bioscience, manufacturing, and infrastructure sectors.
Bilingual by Default	Puerto Rico's professional workforce operates fluently in English and Spanish as a cultural baseline not a learned skill. For companies building teams that will operate across the U.S., Latin America, and beyond, this is a structural competitive advantage.
STEM Pipeline	Universities across the island produce deep pipelines in biomedical science, civil and chemical engineering, data science, and clinical research many trained in direct collaboration with the bioscience and manufacturing companies already operating here.
Cost Advantage	Highly educated bilingual talent in Puerto Rico is meaningfully more cost-competitive than equivalent talent in Boston, San Francisco, New York, or Miami in the same time zone as the U.S. East Coast, under the same federal labor protections.

Why Smart Companies Start Here

Here’s the strategy the most prepared companies understand:

• Puerto Rico isn’t just another market.

• It’s a testing ground that scales.

If you can succeed here, you’ve already learned how to:

• Navigate bilingual markets

• Build trust-based business relationships

• Operate within U.S. systems while thinking globally

That combination translates directly into:

• The broader U.S. market

• Latin America

BEFORE ENTERING YOUR NEXT U.S. MARKET, ASK:

Is it smarter to start in the most competitive, expensive market or in one that gives you a strategic advantage from day one?

For a growing number of companies, the answer is clear:

Start in Puerto Rico. Scale everywhere else.

The companies that win are not always the largest or the best-funded. They are the most prepared. And preparation, in this market, is not about having the right deck. It is about having the right co-pilot, someone who already knows every room before you walk in.

The companies that win in Puerto Rico

are the ones that arrived prepared.

If you are thinking about Puerto Rico or should be

the conversation starts here.

info@l2lmarketing.com  |  l2lmarketing.com

ABOUT THE AUTHOR

Arminda "Mindy" Figueroa

Founder & CEO, L2L Marketing + Communications

Mindy is a Puerto Rico native who has spent nearly 20 years building one of the most trusted bilingual market entry practices in the region. Born on the island and deeply embedded in its business, civic, and institutional ecosystem, she brings something no playbook can replicate: the perspective of someone who grew up in this market, built a career in it, and has guided companies across healthcare technology, bioscience, construction, manufacturing, and brand transformation through it -- from the first conversation to the first contract. Her work has been featured in Forbes, AdAge, Billboard, and the Miami Herald.