Act 60 of Puerto Rico, officially known as the Puerto Rico Incentives Code, is one of the most powerful tax incentive programs available to individuals and businesses seeking to reduce their tax burden legally. It consolidates earlier laws like Act 20 Puerto Rico and Act 22 Puerto Rico into a single, comprehensive code.

This guide explains everything you need to know about Act 60 Puerto Rico, including benefits, eligibility, requirements, and how to apply.

What is Act 60 Puerto Rico?

Act 60 Puerto Rico is a government initiative designed to attract investors, entrepreneurs, and high-net-worth individuals to relocate or expand operations in Puerto Rico by offering significant tax incentives.

It combines multiple tax incentive programs under one umbrella to simplify compliance and maximize economic growth on the island.

Key Benefits of Act 60 Puerto Rico

1. Individual Tax Benefits (Former Act 22)

Under Act 60, individuals who become bona fide residents of Puerto Rico can enjoy:

• 0% tax on capital gains (after becoming a resident)
• 0% tax on dividends
• 0% tax on interest income

This makes Puerto Rico one of the most attractive jurisdictions for investors and traders.

2. Business Tax Benefits (Former Act 20)

Businesses providing export services can benefit from:

• 4% corporate tax rate
• 100% tax exemption on dividends from export services
• Up to 75% exemption on municipal taxes
• Up to 75% exemption on property taxes

3. Additional Incentives

Act 60 also includes incentives for:

• Manufacturing
• Tourism
• Renewable energy
• Agriculture
• Technology and innovation

Act 60 Puerto Rico Requirements

1. Residency Requirements (Individuals)

To qualify for Act 60 tax benefits, you must become a bona fide resident of Puerto Rico:

• Spend at least 183 days per year in Puerto Rico
• Establish a primary home in Puerto Rico
• Have no closer connection to another country or U.S. state

2. Business Requirements

For export services businesses:

• Provide services to clients outside Puerto Rico
• Maintain an office in Puerto Rico
• Employ at least one local employee (in most cases)
• Generate eligible service income

3. Compliance Obligations

• File annual reports
• Pay an annual compliance fee
• Make required charitable donations (for individual decree holders)

Who Should Consider Act 60?

Act 60 is ideal for:

• Entrepreneurs and startups
• Remote business owners
• Crypto traders and investors
• Consultants and service providers
• High-net-worth individuals

How to Apply for Act 60 Puerto Rico

The application process involves:

1. Determine eligibility
2. Incorporate a Puerto Rico entity (if applicable)
3. Submit an application through Puerto Rico’s incentives portal
4. Pay application fees
5. Receive a tax decree (granting benefits)

Working with a qualified tax professional or legal advisor is highly recommended.

Act 60 vs Act 20 & Act 22

Important Considerations

• You must relocate genuinely—this is not a paper residency program
• U.S. federal tax rules may still apply in certain cases
• Strict compliance is required to maintain benefits
• Tax laws can change, so ongoing guidance is essential

Why Puerto Rico?

Puerto Rico offers a unique combination of:

• U.S. territory benefits
• Attractive tax incentives
• Caribbean lifestyle
• Growing business ecosystem

Final Thoughts

Act 60 Puerto Rico is one of the most powerful tax incentive programs available today. Whether you're an investor seeking zero capital gains tax or a business owner looking for a 4% corporate tax rate, Act 60 offers unmatched opportunities—provided you meet the requirements and maintain compliance.