Act 60 Overview
Understanding Puerto Rico's Incentives Code
Act 60, known as the Puerto Rico Incentives Code, consolidates various tax incentive programs previously available under separate acts. Enacted in 2019, it provides significant tax benefits to individuals and businesses relocating to Puerto Rico.
Key Benefits
- 4% corporate tax rate for eligible businesses
- 0% tax on dividends and distributions
- 0% tax on capital gains accrued after becoming a resident
- 100% tax exemption on interest and dividends
- 75% exemption on property taxes for eligible businesses
- 50% exemption on municipal taxes
Main Incentive Programs
- Export Services (formerly Act 20) - For businesses providing services to clients outside of Puerto Rico
- Individual Resident Investor (formerly Act 22) - For individuals relocating to Puerto Rico
- Manufacturing - For manufacturing operations in Puerto Rico
- Tourism - For tourism-related businesses and developments
- Green Energy - For renewable energy projects and investments