Understanding Puerto Rico

Learn About Puerto Rico

787daily covers the news. This page gives you the background that makes the news make sense — plain-English primers on Puerto Rico's economy, government, utilities, culture, and more. Each section links to authoritative sources so you can dig as deep as you want.

Infrastructure

Understanding Puerto Rico's Infrastructure

Puerto Rico's infrastructure — power grid, water systems, roads, bridges, ports, and public facilities — was severely damaged by Hurricane María in September 2017 and had already suffered years of deferred maintenance tied to the island's fiscal crisis. On the…

  • PREPA/AEE is the public power authority; it owns generation plants and has been in federal bankruptcy (Title III under PROMESA) since 2017.
  • LUMA Energy took over transmission and distribution in June 2021 under a 15-year contract — outages and its performance remain a major public debate.
  • PRASA/AAA operates the island's drinking water and wastewater systems, serving all 78 municipalities.
Business

Puerto Rico's Economy: Pharma, Tourism, and Recovery

Puerto Rico's economy is shaped by several overlapping forces: a large pharmaceutical and medical device manufacturing sector (Puerto Rico produces a significant share of U.S. prescription drugs), a growing tourism industry, and the long shadow of a decade-lon…

  • Pharmaceuticals and medical devices are the backbone of Puerto Rico's manufacturing economy — the island produces a major share of U.S. prescription drugs sold globally.
  • Tourism has grown significantly; San Juan is a major cruise port and the sector supports hundreds of thousands of jobs.
  • PROMESA (2016) and La Junta oversaw restructuring of ~$70 billion in debt; a confirmed debt plan reduced obligations substantially.
Community

Community Life in Puerto Rico: Health, Housing, and Safety

Puerto Rico's community landscape is shaped by its status as a U.S. territory: residents access many federal programs — Social Security, Medicare, Medicaid — though historically at lower per-capita rates than U.S. states. The island faces persistent challenges…

  • Healthcare: Puerto Rico receives lower per-capita Medicaid matching funds than U.S. states — a long-standing disparity that affects hospital capacity and provider supply.
  • Education: The Department of Education operates public schools; enrollment has declined significantly over two decades as the population falls, leading to school consolidations.
  • Housing: costs have risen in popular areas — partly linked to Act 60 migration — while many lower-income communities still recover from Hurricane María damage.
Culture

Culture, Food & Recreation in Puerto Rico

Puerto Rico blends Indigenous Taíno, West African, and Spanish heritage into a culture that is unmistakably its own — expressed through music (salsa, reggaeton, plena, bomba), food (mofongo, lechón, tostones, alcapurrias, sofrito), festivals, beaches, and spor…

  • Music: Puerto Rico gave the world salsa, is a global center of reggaeton, and preserves older traditions like plena and bomba rooted in African heritage.
  • Food: mofongo (mashed plantains), lechón (roasted pork), tostones, pasteles, and the sofrito-based cooking tradition are cornerstones of the cuisine.
  • Festivals: Las Fiestas de la Calle San Sebastián (January, Old San Juan) is one of the Caribbean's largest street festivals; municipalities hold patron-saint festivals (fiestas patronales) year-round.
Government & Politics

Puerto Rico's Political Status and Government

Puerto Rico is an unincorporated U.S. territory — its approximately 3.2 million residents are U.S. citizens but do not vote in presidential elections and are represented in Congress only by a non-voting Resident Commissioner in the House of Representatives. Th…

  • Puerto Rico is a U.S. territory: residents are citizens but cannot vote for President and have no voting representation in Congress.
  • The island's non-voting Resident Commissioner serves a four-year term in the U.S. House of Representatives.
  • Puerto Rico has its own Governor and a bicameral Legislative Assembly (Senate + House of Representatives).
Act 60

Puerto Rico's Act 60 Incentive Code

Act 60 of 2019 — formally the "Puerto Rico Incentives Code" (Ley 60-2019) — is an omnibus law that consolidated dozens of prior tax incentive statutes, most notably Act 20 of 2012 (export services) and Act 22 of 2012 (individual investors). Its two headline pr…

  • Act 60 (2019) consolidated earlier incentives — chiefly Act 20 (export services, 2012) and Act 22 (individual investors, 2012).
  • Export Services decree: ~4% corporate income tax on qualifying revenues from services exported outside Puerto Rico.
  • Individual Resident Investor decree: 0% Puerto Rico tax on capital gains, interest, and dividends accrued after becoming a bona fide PR resident.

Hurricane Hub

Puerto Rico sits at the center of the Atlantic basin's most active corridor. The Hurricane Hub covers season basics, the Saffir-Simpson scale, Puerto Rico's major storm history, live tracking resources, and preparedness guides.

Go to Hurricane Hub

Moving to Puerto Rico

Thinking about relocating? Our practical guide covers residency & Act 60 basics, driver's license, utilities, healthcare, schools, banking, and cost of living — each with links to the official source. General information, not legal or tax advice.

Open the relocation guide

Learn — Puerto Rico

Did You Know?

  1. Puerto Ricans have been U.S. citizens since 1917, when the Jones-Shafroth Act was signed into law.

    Island residents can vote in presidential primaries but not the general election, and are represented in Congress by a non-voting Resident Commissioner.

    Congress.gov — Jones-Shafroth Act
  2. El Yunque National Forest is the only tropical rainforest in the U.S. National Forest System.

    Located in the Sierra de Luquillo mountains of northeastern Puerto Rico, El Yunque receives up to 200 inches of rain per year and shelters hundreds of species found nowhere else on Earth.

    USDA Forest Service — El Yunque
  3. Mosquito Bay on Vieques holds the Guinness World Record as the brightest bioluminescent bay on the planet.

    The bay's glow comes from microscopic dinoflagellates (Pyrodinium bahamense) that emit light when disturbed. Vieques is a small island municipality off Puerto Rico's east coast.

    Guinness World Records
  4. Puerto Rico has fielded its own Olympic team since the 1948 London Games.

    Despite being a U.S. territory, Puerto Rico competes as a separate nation under the Olympic Charter. The island has won gold in boxing, tennis, and track, and is particularly celebrated for its basketball program.

    Comité Olímpico de Puerto Rico
  5. The legal drinking age in Puerto Rico is 18 — three years younger than on the U.S. mainland.

    Puerto Rico is subject to U.S. federal law in many respects, but the minimum drinking age is set locally. The National Minimum Drinking Age Act (1984) conditions federal highway funds on states' adoption of age 21, but does not apply to territories the same way.

  6. The coquí frog — named for the sound it makes — is Puerto Rico's most beloved national symbol.

    These tiny tree frogs (genus Eleutherodactylus) are endemic to Puerto Rico. Their distinctive "ko-KEE" call is heard across the island from dusk to dawn. Coquís introduced to Hawaii became invasive; the species thrives only in Puerto Rico's ecosystem.

    NPS — Coquí of Puerto Rico
  7. "Puerto Rico" means "rich port" in Spanish. The Taíno name for the island is Borikén — the origin of the word boricua.

    Taíno people inhabited the island for centuries before Spanish colonization beginning in 1508. The word boricua remains a powerful cultural identity marker for Puerto Ricans both on the island and in the diaspora.

  8. San Juan is the oldest continuously inhabited city under the U.S. flag, founded in 1521.

    La Fortaleza, the official residence of Puerto Rico's Governor, is the oldest executive mansion in continuous use anywhere in the Americas. Both Old San Juan's blue cobblestones and its 16th-century fortifications (El Morro, San Cristóbal) are UNESCO-recognized.

    NPS — San Juan National Historic Site
  9. Puerto Rico uses the U.S. dollar and 120V electricity — but has its own internet country code: .pr.

    The island is fully integrated into the U.S. monetary system, and U.S. wireless carriers operate there. The .pr domain is administered locally, and Puerto Rico also has its own FIPS code, ZIP codes, and area codes (787 and 939).

  10. The island is divided into 78 municipios (municipalities), each with its own elected mayor and assembly.

    The municipios range from densely urban San Juan to rural mountain towns like Maricao. Each holds its own annual patron-saint festival (fiestas patronales), making Puerto Rico one of the most festival-rich places in the Caribbean.

    Puerto Rico State Election Commission
  11. Spanish and English are both official languages of Puerto Rico.

    Spanish is by far the dominant everyday language; English proficiency varies widely. Both languages appear on government documents, signage, and in the courts. Puerto Rico is also a birthplace of Spanglish — a vibrant code-switching blend of the two.

    Puerto Rico Constitution, Art. VI §3 (bilingual government)
  12. The Arecibo Observatory, once the world's largest single-dish radio telescope, operated in Puerto Rico for 57 years before its collapse in 2020.

    Built in 1963 in a natural karst sinkhole in the mountains of Arecibo, the observatory contributed to discoveries in pulsar astronomy, near-Earth asteroid tracking, and the SETI program. Its iconic dish appeared in films including GoldenEye and Contact.

    NSF statement on Arecibo Observatory
  13. Puerto Rico is widely regarded as the birthplace of reggaeton and is a global hub of Latin music.

    The genre emerged in San Juan's housing projects in the early 1990s, blending Jamaican dancehall, hip-hop, and Caribbean rhythms. Artists including Daddy Yankee, Bad Bunny, and J Balvin have carried Puerto Rican sounds to the top of global charts. Older traditions — bomba and plena — also trace directly to the island.

  14. The flamboyán tree (royal poinciana) blooms brilliant orange-red across Puerto Rico each summer, becoming an unofficial symbol of the island.

    Though not native — it originated in Madagascar — the flamboyán has been embraced as a cultural icon. Its canopy lines roadsides and plazas, and its bloom season coincides with school letting out, making it a marker of summer in Puerto Rican memory.

  15. As a U.S. territory, Puerto Rico has its own separate tax system — residents generally do not pay U.S. federal income tax on Puerto Rico-sourced income.

    Puerto Rico's tax code is administered by Hacienda (the Treasury Department of Puerto Rico), not the IRS, for income earned on the island. This distinct status forms the legal basis for incentive programs like Act 60. Puerto Ricans do pay Social Security and Medicare taxes, and federal income tax applies to income from U.S. sources.

    IRS: Individuals Living in Puerto Rico
  16. Bacardí rum has been produced in Puerto Rico since 1936, after the company relocated from Cuba following U.S. Prohibition.

    The Bacardí distillery in Cataño, just across the bay from San Juan, is one of the world's largest rum distilleries. Puerto Rico produces roughly 70% of all rum sold in the United States, making rum a significant component of the island's economy and cultural identity.

787daily is an independent news aggregator and educational resource. Primer content is written for general orientation and links to authoritative primary sources for specifics. Always verify important decisions with qualified legal, tax, or professional advisors.