Buying an International Bank in Puerto Rico – 2025 Market and Regulatory Guide
Puerto Rico continues to lead the global offshore banking market—and in 2025, buying an existing international bank has never made more sense.
Over the past few years, regulators have raised the bar on new license applications. The process is more selective, capital requirements have doubled, and compliance expectations are higher. At the same time, acquiring a licensed bank already operating under Act 273 remains not only viable—but often preferable.
This article will walk you through the current costs, benefits, and regulatory considerations of buying an international financial entity (IFE) in Puerto Rico in 2025.
Why Buy Instead of Build?
Let’s start with the basics: both buying and building a bank from scratch require OCIF (Office of the Commissioner of Financial Institutions) approval. You’ll go through the same background checks, due diligence, and licensing compliance either way. However, buying a bank fast-tracks your launch timeline by at least 9 to 14 months, and in many cases, dramatically reduces startup costs and operational delays.
Factor | Start a New Bank | Buy an Existing Bank |
Licensing Time | 12 to 18 months from start to launch | 3 to 4 months with Change of Control |
Startup Capital | $12 million required up front | Start with $5M paid-in, increase over time |
Staff and Buildout | Must be built from zero | Already in place or partially staffed |
Competition | Compete with others for limited licenses | No competition—private deal with seller |
Fedwire Access | Long application process post-licensing | Often already in place with seller’s bank |
Cost to Acquire a Bank in Puerto Rico (2025)
In today’s market, a clean and licensed—but non-operating—bank sells for around $5 million, not including capital. Operational banks range from $5 million to $55 million, depending on:
- Whether the bank has active clients or liabilities
- The type and size of its correspondent relationships
- Whether the bank has a Fedwire account (the top of the market)
Remember: this acquisition cost does not include the capital required to operate the bank. You’ll need to have $5 million paid-in at the time of purchase and increase to $10 million over time as agreed with OCIF.
Capital Advantage: Buy Now, Grow Later
Starting a bank today means having $12 million in cash ready to go: $10 million paid-in capital, $1 million unencumbered (CD), and a $1 million startup budget. But if you buy a licensed IFE, especially one with regulatory goodwill, you inherit its original terms.
That means you can buy today with $5 million in paid-in capital and increase your capital base over a few years—subject to regulator approval. This makes acquisition the most efficient capital strategy available in Puerto Rico’s IFE sector.
Less Competition, Faster Approvals
Puerto Rico typically approves only two or three new IFE licenses per year, making the new license process highly competitive. If you’re applying for a new license, you’re directly competing with other applicants. Regulators will take their time and only approve the best capitalized and most experienced applicants.
When buying an existing bank, you’re not competing with anyone. So long as you meet the regulatory requirements—background checks, source of funds, and financial statements—you’ll be approved. And you won’t wait a year to start. Once OCIF approves the Change of Control, you’re ready to operate.
Tax and Banking Benefits
All IFEs in Puerto Rico benefit from the same unparalleled advantages:
- 4% tax rate under a renewable 10-year decree
- No U.S. federal tax on Puerto Rico-source income
- No withholding tax on dividends to foreign shareholders
- Access to SWIFT, ABA, and the Fedwire system
- Improved odds of establishing a U.S. correspondent account
Puerto Rico is the only jurisdiction in the world where you can operate an international bank within the U.S. banking system—without U.S. federal tax.
How We Help
At Aviara Advisors, we help clients source, evaluate, and acquire clean international banks in Puerto Rico. Whether you’re looking for a license-only structure, an operating institution, or a bank with Fedwire and core systems already in place, we can guide you through:
- Due diligence and financial modeling
- Negotiation and Change of Control filing
- Capital planning and compliance team hiring
- Regulator communication and transition to new ownership
Ready to Move?
There are only a handful of clean, ready-to-buy banks available in any given year. And while there are currently nine new license applications pending, most will not be approved. The fastest path to market, and the most strategic use of capital, is through acquisition. For more information, contact us at info@banklicense.pro.
Contact us today at info@banklicense.pro to start the conversation. We’ll help you purchase a licensed international bank and take it live in just a few months.