2025 Update
A concise guide to today’s rules, the proposed 2026 changes, who qualifies, and how INVESTATE Puerto Rico helps you relocate and invest with confidence
Status note (Sept 2025): Puerto Rico’s legislature approved a bill to extend Act 60 to 2055 and impose a 4% tax on passive income for new individual applicants starting January 1, 2026. Final enactment and implementing guidance are pending publication. Current decree holders keep their existing benefits. Always confirm with your tax counsel and the DDEC before making decisions.
To capture Act 60 individual benefits you must be a bona fide resident of Puerto Rico for the tax year and meet the presence, tax home, and closer connection tests. Certain filings (e.g., Form 8898) may apply in the year you move.
Commonly 183+ days in Puerto Rico (or alternate day‑count safe harbors). Keep robust travel evidence
Your principal place of business should be in Puerto Rico.
Show primary ties (home, family, business, social, banking) are in Puerto Rico.
0% PR tax on dividends, interest, and capital gains accrued after residency; subject to compliance and decree terms.
4% corporate rate; 100% exemption on dividends from exempt business; up to 75% property tax and 50% municipal exemptions.
Targeted benefits for qualified physicians in underserved areas (verify eligibility).
INVESTATE: Puerto Rico partners with tax counsel and CPAs to align residency planning, real estate acquisition, and business structuring under Act 60. We provide neighborhood intelligence, off‑market opportunities, and an end‑to‑end advisory experience.
Disclaimer: This page is for informational purposes only and does not constitute legal, tax, or investment advice. Always consult your attorney and CPA. Benefits depend on decree terms, residency tests, and evolving legislation and regulations.
Last reviewed: Sept 3, 2025.
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