“Aquí vive gente que lucha y que no se deja.”
– El Apagón, Bad Bunny.
Modern colonialism in Puerto Rico is not limited only to politics and the economy controlled by the United States; it is also manifested in laws that benefit outsiders and affect those within. One of such is Law 22, which seeks to incentivize the relocation of individual investors to Puerto Rico. That is, it grants a full tax exemption on capital gains to people who relocate their residence from any country to the island (González). This law was initially approved in 2012 and is currently part of the Incentives Code 60, along with other incentives. Although its main purpose was to promote the economy, its consequences have been evident over the years. Some of these have been the displacement of communities and homes, the rising cost of living, the increase in real estate prices, and unequal rights. In other words, Law 22 represents a manifestation of modern colonialism that deepens social inequality, displaces local communities, and reinforces a dependent economy.
Origin and Purpose of Law 22
Law 22, also known as the “Law to Incentivize the Relocation of Individual Investors to Puerto Rico,” was created with the intention of attracting high-net-worth individuals to improve the local economy. The purpose behind this law was that these investors would generate jobs that would increase consumption, thereby promoting and expanding the island’s economy. Over time, this rule was integrated into Law 60, a broader tax-benefit law that has broadened the scope of these measures. However, although the initial purpose seemed optimistic, its use has proven to have serious consequences for us Puerto Ricans.
Economic and Social Consequences
Over the years, one of the most evident impacts of Law 22 has been the dramatic increase in real estate prices. These are properties consisting of lands and buildings, along with the natural resources they contain, such as water, minerals, or crops. In towns like San Juan, Dorado, Rincón, and Cabo Rojo, properties that were once accessible to local citizens are now selling for millions of dollars. This has led to gentrification, a process in which Puerto Rican residents are displaced by people with more power and money. In Bad Bunny’s video El Apagón, a special case was shown, where journalist and reporter Bianca Graulau documented how residents of Puerta de Tierra received letters notifying them that they had only 30 days to vacate their homes, with no advance notice or alternatives. Situations similar to this reveal the harshness of a law that favors foreigners while forcing Puerto Ricans into marginalization or emigration.
The Dependence of Modern Colonialism
Thus, there is a clear structural inequality because these tax incentives only apply to foreigners who choose to reside on the island and not to the locals. This law is a reflection of how modern colonialism still exists in Puerto Rico, maybe not in the same way as in the years 1493–1898, but through economic decisions imposed by a government that does not respond to the needs of the people. Instead of strengthening the internal economy, Law 22 reinforces a harmful dependence on foreign capital. Various academic, social, and political sectors consider this a form of neocolonialism, where instead of empowering the country, it becomes a business proposition for others. The profits obtained are lost, and the people of the island are left to bear the consequences, such as rising prices, the loss of housing, and a deeply deteriorated economy.
It should be mentioned that Law 22 does not stand alone; it also casts a shadow on Law 20, which was designed to foster export services and production locally. Puerto Rico is no longer the strong producer it once was, and by prioritizing foreign investors over local businesses, these laws distort the economic principles of the island. Therefore, the effect of Law 22 is and will be a defining influence in shaping Puerto Rico’s economy, not necessarily for the best. So we must ask ourselves: are these laws saving the island’s debt, or are they slowly destroying the very pillars of our homeland?
In conclusion, over the years, Law 22 has become a provision that has transformed Puerto Rico into a tax haven for outsiders, but a living hell for those who live here. Far from generating significant benefits for its people, it favors few and deepens the social inequalities currently faced. The island’s economic development should not be built on the sacrifice of its citizens, much less on the right of communities to remain on their lands. Puerto Rico needs dedicated and responsible politicians who value its people and who have the capacity, along with the courage, to decide and build a better future. Therefore, I urge us as residents to educate ourselves on this matter and to take a stand for what’s rightfully ours. Each one of us must unite and stand together to show the world that, despite living under a corrupt and unjust government, we are still here. Only in this way can we break the invisible chains of modern colonialism that we face, and achieve a better Puerto Rico, one where we are no longer secluded from our own homeland.