The story of Montadero begins with a doubt many Puerto Rican entrepreneurs share and ends with six jobs, two locations and a business that was finally able to grow. This is what happened when Germán Ramos decided to sign the Decreto de Manufactura.
When Montadero had been operating for two years, Germán Ramos had a single location, a very small operation and one fixed idea in his head: that the country's manufacturing incentives were not for entrepreneurs like him.
"I thought that incentive was for foreigners, that it didn't apply to local businesses. But there are a lot of incentives for local manufacturing."
That confusion is more common than it seems. And clearing it up was, in his own words, the moment that changed the history of his chocolate shop.
💡 The day he discovered that local manufacturing counts too
Germán got oriented almost by chance. He connected with the Departamento de Desarrollo Económico y Comercio (DDEC) through the municipality of Caguas, and there they explained the Decreto de Manufactura, created under Ley 60 to support the development and growth of manufacturing businesses on the Island. Today more than 1,250 projects are already cutting operating costs and growing thanks to these incentives. The first thing he learned was that "manufacturing" means much more than he had thought. For purposes of the Decreto, manufacturing is any operation that converts raw materials into a product, tangible or intangible, that generates economic value. Montadero's chocolate fits that without any problem, as do many businesses that never imagined they would qualify.
Tangible products: the fabric and thread of a school backpack, the water and electrolytes in a sports drink, or cacao turned into chocolate (and likewise other fruits and vegetables made into edible products).
Intangible products: research that develops vacuum packaging to better preserve the nutrients of local fruits, software development for virtual or augmented reality, or models and applications based on artificial intelligence.
Find more information on the DDEC main page
This article is presented by the Departamento de Desarrollo Económico y Comercio (DDEC).
Start here"It was with the decreto that we truly began to grow"
With that clarity, Germán took the step and applied for the Decreto de Manufactura.
"For me it was a crucial moment because we only had one operation and it was very small. It was with the decreto that we truly began to grow the business."
What changed? Signing the Decreto, which in practice is a contract, gave him access to two types of benefits. The economic incentives are reimbursements and investment matching for marketing, equipment purchases, infrastructure, exports and job creation. The tax incentives include a fixed preferential tax rate of 4%, plus exemptions on the municipal license tax, excise taxes and the property tax (CRIM).
Stability is part of the appeal. The Decreto "freezes" the tax benefits for 15 years, renewable for another 15, so that 4% rate is not affected by changes in future tax laws. For an entrepreneur planning long-term, that means knowing what to count on.
Germán Ramos | Montadero Chocolate via Instagram
From one location to two, and from Germán alone to six jobs
The numbers tell the rest of the story. With the savings generated by the tax benefits, Germán expanded Montadero to two locations, one in Caguas and one in San Juan, where they now employ six people. On top of that come the accounting and marketing services he contracts out, plus other indirect jobs that move the local economy.
"This type of incentive is very necessary for manufacturing because the business risks in this country are many and they are constant."
What Germán wants you to know before you start
🤔 Get oriented before you begin, not just about the application.
Germán insists on getting oriented not only about the application process, but also about the steps that come after, such as permits.
📚 Know your market and your industry well.
Conducting market research is vital for making decisions based on data rather than assumptions. It lets you know whether your product will sell and ensures that your investment of time and money is aligned with what the market needs.
"Try to be as good as possible in your industry. The competition is not just with Puerto Rico but with people from all over the world. Not only because they come here to compete, but because we can compete in other markets around the world."
⚙️ Take advantage of the business circuit.
Puerto Rico's business circuit is very active. In addition to workshops on finance, marketing and business management, these events connect you with resources that give you perspective and can support you at every stage.
"I participate a lot in export events. We are a niche that can reach many parts of the world. It's not easy, but it's not as complicated as one thinks, because I thought so myself. The business keeps getting known thanks to the support we receive."
His final piece of advice is the simplest of all: get personally involved in the process. Taking this step, he says, can change the story of your company.
3 things to know about the Decreto de Manufactura
Who it's for. Companies dedicated to transforming raw materials into finished products, packaging, assembly, or the development of software and biotechnology in Puerto Rico.
The benefit. It is divided into economic incentives (reimbursements and investment matching for marketing, equipment, infrastructure, exports and jobs) and tax incentives (a fixed rate of 4%, plus exemptions on municipal license fees, excise taxes and CRIM).
They can be combined. If you are a young entrepreneur (under 36), the official recommendation is to first apply for the Decreto de Joven Empresario to take advantage of its three-year initial exemption and, later, move to the Decreto de Manufactura. With the decree signed, you can also benefit from the Incentivo para Mercadeo Local y al Exterior and the Incentivo para Transporte al Exterior.
Ready to take the step? Start with the Guía para solicitar los incentivos económicos y contributivos de manufactura.
If you want to learn more about other incentives from the Departamento de Desarrollo Económico y Comercio, we have put together guides that explain point by point what they are, who qualifies and how to apply:
Guía para solicitar los incentivos económicos y contributivos de manufactura
Guía comparativa para entender Incentivo Económico vs. Incentivo Contributivo
Guía para solicitar los incentivos de capital semilla para PyMEs
Guía para solicitar el Incentivo para Profesionales de Difícil Reclutamiento
This content was translated with the assistance of Artificial Intelligence (AI).
