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
2026 UPDATE: Puerto Rico enacted Act 38-2026 on March 10, 2026, amending the Act 60 framework for Resident Individual Investors. Applications submitted on or before December 31, 2026 remain subject to the tax framework applicable to that group, while applications submitted on or after January 1, 2027 are generally subject to a 4% preferential Puerto Rico income tax rate on qualifying interest, dividends, and certain post-residency capital gains. Eligibility, residency requirements, decree terms, and individual circumstances may affect the benefits available. Always consult qualified Puerto Rico tax and legal advisors before making decisions.
Under Act 38-2026, individuals who apply on or after January 1, 2027 are generally subject to a 4% preferential Puerto Rico income tax rate on qualifying interest, dividends, and certain capital gains accrued after becoming a bona fide Puerto Rico resident, rather than the prior 0% treatment.
Eligibility, sourcing rules, residency requirements, decree terms, and individual circumstances can affect the final tax treatment. Buyers considering relocation should coordinate their real estate timeline with qualified Puerto Rico tax and legal advisors.
Receiving an Act 60 decree and obtaining its intended tax treatment are not the same as simply owning a home in Puerto Rico. Resident Individual Investors must establish and maintain bona fide Puerto Rico residency and satisfy applicable federal and Puerto Rico requirements.
Puerto Rico residency generally requires satisfying the applicable federal presence test or an available alternative test or safe harbor. Maintain detailed records of your travel and days of presence.
Your tax home generally must be in Puerto Rico during the relevant tax year, subject to applicable federal rules.
Your facts and circumstances must support a closer connection to Puerto Rico than to the United States or another jurisdiction.
Relocating your primary residence is a substantive decision—not simply an address change. Work with qualified tax counsel to determine how the residency rules apply to your circumstances.
KEY BENEFITS
Existing framework for qualifying interest, dividends, and eligible post-residency capital gains, subject to bona fide residency, decree terms, and ongoing compliance.
KEY BENEFITS
New applicants are generally subject to a 4% preferential Puerto Rico income tax rate on qualifying interest, dividends, and certain post-residency capital gains, subject to eligibility, bona fide residency, decree terms, and ongoing compliance.
KEY BENEFITS
Qualifying export services businesses may benefit from a 4% Puerto Rico corporate income tax rate, along with other exemptions available under Act 60, subject to eligibility, decree terms, and ongoing compliance.
Understanding Act 60 is one part of the decision. Choosing where and how to live in Puerto Rico is another.
INVESTATE Puerto Rico advises relocation buyers on the real estate side of the move—from comparing communities such as Dorado, Condado, Guaynabo, Río Grande, and Isla Verde to evaluating properties, market values, ownership considerations, and acquisition strategy.
We coordinate with your attorneys, CPAs, lenders, and other advisors so your real estate decisions fit within your broader relocation plan.
This page is provided for general informational purposes only and does not constitute legal, tax, accounting, or investment advice. Act 60 eligibility and tax treatment depend on individual circumstances, decree terms, residency requirements, applicable law, and continuing compliance. Consult qualified Puerto Rico legal and tax professionals before making decisions.
Last reviewed: September 4, 2026.
Act 60 may influence the financial side of your relocation. We help you navigate the real estate side. From choosing the right community to evaluating and acquiring the right property, INVESTATE Puerto Rico provides local representation throughout your move.