In short
The Special Incentive for Local and Foreign Marketing Activities for Local Businesses (PyMEs) is part of the DDEC’s Economic Incentives Program and is governed by Regulation MO-DEC-015. The DDEC reimburses 50% of the expenses incurred, up to a maximum of $10,000, over an 18-month term. It can be used for digital marketing, creating or improving the company website, social media including paid ads and the use of influencers, search engine optimization, and local product exhibitions including the cost of the space and renting the display stand. To qualify, annual sales may not exceed $3,000,000, you must have 25 or fewer full-time employees and at least one full-time employee on payroll, and you must commit to using the logo of the promotional campaign the Government is running at the time of approval. A Local Business is defined by its majority shareholders: born in Puerto Rico, or US citizens or foreigners with five consecutive years of residence in Puerto Rico who hold more than 50% of the shares. As with the DDEC’s other incentives, the amount is set by a table based on net annual income — $8,000 up to $1,499,000 of net income, $10,000 from $1,500,000 to $3,000,000 — and expenses incurred before the contract is recorded at the Oficina del Contralor are not reimbursed.
What is it?
This incentive is administered by the DDEC’s Trade and Export Program, and its application and reimbursement mechanism is set by Carta Circular DDEC Núm. 2025-014, issued 9 October 2025. Its stated purpose is to support PyMEs in marketing their products and services in Puerto Rico and abroad, and to develop the Local Business in that marketing. The programme is funded by an allocation from the DDEC’s Economic Programs and Incentives Fund and is subject to the availability of funds. It is different from Capital Semilla, which the same Program also administers: Capital Semilla pays for equipment, rent, improvements and salaries of new jobs; this one pays for marketing. And there is a rule connecting them: a PyME that already received an incentive under Impulso PyMEs, Capital Semilla or this same incentive must wait twelve months from the expiry of the relevant contract before becoming eligible again.
Who can do it?
A PyME is a business with average sales of $3,000,000 or less over the three previous tax years and 25 or fewer full-time employees, and it must have at least one full-time employee on payroll. A Local Business, under Regulation MO-DEC-015, is one whose majority shareholders were born in Puerto Rico, or were not born in Puerto Rico but are US citizens or foreigners with five consecutive years of residence in Puerto Rico and hold more than 50% of the shares. The DDEC page names as eligible the commercial sector established in Puerto Rico, services offered locally, and PyMEs in food and beverage, retail, tourism and technology, among others. And it names as not eligible: speculative investment companies such as real estate investors, owners of property rented for residential use, financial entities and residents’ associations; entities operating adult entertainment or massage parlours, excluding aesthetics businesses that include massage services; gasoline retailers; entities whose main business is selling alcohol; entities involved in lobbying or political activities; entities involved in religious activities; and — this surprises many people — innovative PyMEs, understood as advanced manufacturing, aerospace, bioeconomy (pharmaceutical, biotechnology, medical devices), environmental sciences, energy and technology, or a critical supplier replacing imports or exporting goods or services. The DDEC has a separate incentive for innovative PyMEs.
Requirements
- Annual sales not exceeding $3,000,000 and a payroll of 25 or fewer full-time employees, with at least one full-time employee.Verified against the official source
- Being a Local Business: majority shareholders born in Puerto Rico, or US citizens or foreigners with five consecutive years of residence in Puerto Rico holding more than 50% of the shares.Verified against the official source
- Not holding a tax exemption decree under Ley 60-2019 or earlier incentive laws.Verified against the official source
- Committing to use the logo of the promotional campaign the Government is running when the incentive is approved.Verified against the official source
Documents you need
Cost
Step by step
Step 1: Confirm you are a Local Business and a PyME
These are two separate tests and you must pass both. PyME is about size: average sales of $3,000,000 or less over the three previous tax years and 25 or fewer full-time employees, with at least one on full-time payroll. Local Business is about ownership: the majority shareholders must be born in Puerto Rico, or US citizens or foreigners with five consecutive years of residence in Puerto Rico, and hold more than 50% of the shares.
Step 2: Check you are not on the exclusion list
The DDEC excludes speculative investment companies such as real estate investors and owners of property rented for residential use, financial entities and residents’ associations; adult entertainment and massage parlours, except aesthetics businesses that include massage; gasoline retailers; businesses whose main line is selling alcohol; lobbying or political entities; entities involved in religious activities; and innovative PyMEs, which have their own separate incentive. On the tax decree, both of the DDEC’s statements have to be reported: its web page says flatly that PyMEs with a Ley 60-2019 decree are not eligible, while Carta Circular 2025-014 says the same but adds "except for young entrepreneurs’ businesses with a decree". If you are a young entrepreneur with a decree, ask before ruling yourself out.
Step 3: Plan the spend: the list of uses is broad
The incentive can be used for five things. Digital marketing: content marketing, promotional emails, creating internet material such as ads, videos and blogs, mobile promotion, affiliate marketing and other previously approved online promotional media. Website: creating or improving the company’s page. Social media: posting content, improving it, running paid ads and using influencers. Search engines: optimizing the position of your company’s website or of the product or service brand. And local product exhibitions: taking part in promotional events where your products are exhibited or demonstrations or tastings are offered, including the cost of the space, buying or renting the display stand and renting the equipment needed to exhibit.
Step 4: Gather the papers
For the portal application the DDEC asks for: application form; evidence of annual sales, which may be the prior year’s financial statement, the sales volume report per the Municipal License or a copy of the return filed with Hacienda; Hacienda no-debt certification (SC-6096); certification of tax return filing (SC-6088), and separately for the last five years; copy of the IVU Merchant Registry (SC 2918); no-debt certification from the Labor Department for unemployment and disability; no-debt certification from the State Insurance Fund; CRIM no-debt certification for movable and immovable property for all concepts; ASUME no-debt certification; certificate of incorporation and Good Standing certification from the Department of State; evidence of the EIN; current legal photo ID; Municipal License; and Permiso Único or Carta Consulta. If a corporation, all documents must be in the corporation’s name, including the Certificate of Organization.
Step 5: If you owe, present the payment plan
The DDEC says expressly that a business owing any agency must present evidence of a payment plan and of complying with it, or evidence of an administrative review. Owing does not automatically disqualify you; owing without a current plan does. Only complete proposals are evaluated, and subject to the availability of the fund.
Step 6: File and watch the 90-day clock
The application is made through the DDEC portal. The PyME has a 90-day term to complete the required documentation. If the DDEC asks you to correct information already provided, the 90-day term is interrupted until you comply, and once the information is verified the remaining days resume. Each application is evaluated on four criteria: meeting the annual sales requirement of under $3,000,000; meeting all no-debt certifications; employing 25 or fewer full-time people; and the proposal containing well-defined objectives and achievable metrics.
Step 7: If approved, you have 30 days to sign
Applications are evaluated by a Committee that decides whether the proposal is recommended or denied. Once approved by the Committee, the business is notified through the portal or by email, and has 30 days from the notification date to accept the terms and sign the incentive contract, which will run for 18 months. If denied, the DDEC Secretary issues an electronic notification with a brief explanation of the reasons and information on the rights and processes for requesting reconsideration.
Step 8: Spend after recording and bill quarterly
As with Capital Semilla, the Carta Circular is categorical: expenses before the Incentive Contract is recorded at the Oficina del Contralor are not reimbursable. Reimbursement is 50% of the expense incurred, in line with the approved amount and the established uses. You must submit an invoice addressed to the DDEC, signed with the certification that no DDEC public servant has an interest in the profits, with original receipts in the business’s name. The authorized payment methods are check, manager’s check, credit card, PayPal, ATH Móvil Business and web cash; cash and money order payments are not reimbursed. Reimbursement may only be requested quarterly, and six months without a request cancels the contract automatically.
Step 9: And you can apply again when it ends
The business may apply again once the contract term ends. If you had been granted it before, the DDEC will check whether you complied with delivering the Closing Report or Questionnaire included in the proposal, and whether your metrics show growth in the commercial operation: job creation, increased sales, business expansion or new markets. The Carta Circular adds that you must wait twelve months from contract expiry if the previous incentive was Impulso PyMEs, Capital Semilla or this same one.
Where to do it
The application is filed online on the DDEC portal. For clarifications, the DDEC Central Office answers at 787-758-4747, extensions 3314, 5515 and 5517, and at premprende@ddec.pr.gov, or the Trade and Export Program staff at the Centro Único de Servicios (CUS), Ave. Roosevelt #355, first level, San Juan. The DDEC’s physical address is 355 F. D. Roosevelt Ave, San Juan, Puerto Rico 00918.
How long it takes
What to do if something goes wrong
First: it is a 50% reimbursement, not a cheque up front. If the marketing project costs $20,000, you put in $20,000 and the DDEC returns up to $10,000 afterwards. Second: do not spend before the contract is recorded at the Oficina del Contralor, because those expenses are not reimbursed. Third: the amount is set by the Carta Circular’s net annual income table — $8,000 for net income of $0 to $1,499,000 and $10,000 from $1,500,000 to $3,000,000 — so most small PyMEs are looking at $8,000, not $10,000. This guide does not say how long the Committee takes to decide or how much funding is left; the DDEC does not publish it. On PyMEs with a tax decree, the DDEC contradicts itself: its web page excludes them without exception and its Carta Circular excludes them except for young entrepreneurs’ businesses with a decree. This guide reproduces both versions and does not pick; if that is your case, ask the Program. And if your business is in advanced manufacturing, aerospace, biotechnology, medical devices, environmental sciences, energy or technology, this is not your incentive: the DDEC classifies you as an innovative PyME, which has a different programme.
Common mistakes
- Thinking they give you $10,000 in cash: it is a 50% reimbursement of spending you make first.
- Spending on marketing before the contract is recorded at the Oficina del Contralor.
- Counting on the $10,000 cap without looking at the net income table, which gives most businesses $8,000.
- Paying the designer or agency in cash: those payments are not reimbursed.
- Ruling yourself out for holding a tax decree without asking, if you are a young entrepreneur.
- Applying as an innovative PyME, which the DDEC excludes from this incentive and serves in another.
- Letting the 90-day term to complete the documentation lapse.
- Once approved, letting the 30 days to sign the contract pass.
- Not committing to use the Government’s promotional campaign logo, which is an express requirement.
Frequently asked questions
Will the government pay for my business website?
It reimburses 50%. Creating or improving the company website is expressly among the permitted uses, along with digital marketing, social media including paid ads and influencers, search engine optimization and product exhibitions.
How much will they approve?
The Carta Circular publishes a reference table based on the net annual income on the tax return: $8,000 for net income of $0 to $1,499,000, and $10,000 from $1,500,000 to $3,000,000. The programme cap is $10,000 over 18 months.
Can I apply for this and Capital Semilla at the same time?
The Carta Circular says PyMEs that have received an incentive under Impulso PyMEs, Capital Semilla or this incentive must wait twelve months from the expiry of the relevant contract to be eligible for the programmes under that Carta Circular. Ask the Trade and Export Program about your specific case.
I have a Ley 60 decree. Am I out?
The DDEC says two different things. Its web page says businesses with a decree under Ley 60-2019 and earlier laws are not eligible, without exception. Carta Circular 2025-014 says the same and adds "except for young entrepreneurs’ businesses with a decree". This guide does not pick between them; if you are a young entrepreneur with a decree, ask before ruling yourself out.
Official sources
These are the government pages this guide is based on.
- Departamento de Desarrollo Económico y Comercio (DDEC)
DDEC
www.ddec.pr.gov
- Carta Circular DDEC Núm. 2025-014 — PyME incentives
ddec
docs.pr.gov
Last verified
August 15, 2026
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