Understanding Act 60 Tax Incentives
Puerto Rico offers some of the most attractive tax incentives available to U.S. citizens and residents.
What is Act 60?
Act 60, also known as the Puerto Rico Incentives Code, is a comprehensive tax incentive law that consolidates various tax decrees previously available under Acts 20 and 22.
Enacted in 2019, Act 60 offers significant tax benefits to individuals and businesses that relocate to Puerto Rico and meet specific requirements.
Individual Resident Investor (Former Act 22)
Act 60 offers significant tax benefits to individuals who become bona fide residents of Puerto Rico:
- 0% tax on capital gains accrued after becoming a Puerto Rico resident
- 0% tax on dividends and interest from Puerto Rico sources
- 5% tax on long-term capital gains accrued before becoming a resident (when realized after residency)
- Exemption from Puerto Rico gift and estate taxes
Key Requirements:
- Become a bona fide resident of Puerto Rico
- Purchase residential property within 2 years
- Make an annual donation of $10,000 to Puerto Rico non-profits
- File an annual report with the Office of Industrial Tax Exemption
Why Choose Puerto Rico?
Lifestyle Benefits
- Tropical climate year-round
- Beautiful beaches and natural landscapes
- Rich culture and history
- No passport required for U.S. citizens
Practical Advantages
- U.S. banking system and currency
- U.S. postal service and shipping
- U.S. legal framework and protections
- Growing community of entrepreneurs and investors