What is Puerto Rico Act 60?
Act 60 is Puerto Rico's consolidated package of tax incentives. In plain terms, it can create reduced-rate treatment for certain investors or export-services businesses that genuinely relocate and obtain a government decree.
The two pieces people mean by Act 60
Individual investor incentive
For individuals who become bona fide Puerto Rico residents, qualifying Puerto Rico-sourced capital gains may receive preferential treatment under a decree.
Export-services incentive
For businesses providing eligible services from Puerto Rico to customers outside Puerto Rico, a preferential corporate rate may apply to export income.
The 0% vs 4% investor rate window
Under current law (Act 38-2026, pending final Fiscal Oversight Board endorsement), the investor capital-gains rate is framed around the decree application filing date. Applications filed on or before December 31, 2026 are intended to secure the 0% investor rate; applications filed on or after January 1, 2027 fall under the 4% regime for new applicants.
This is general information only. Your actual treatment depends on facts including residency, sourcing, holding periods, pre-move appreciation, federal rules, and government action.
Who Act 60 may fit
Act 60 may be relevant when a person can genuinely relocate, organize a defensible residency record, and has income or gains that a licensed professional can review for Puerto Rico treatment. It is not a fit signal if the person cannot relocate, the income remains mainland-tied, or no one can document the facts.
What it really costs
Government-side costs and ongoing obligations are real. Publicly cited investor-decree obligations often include a government filing fee, annual report filing fee, and required annual charitable donation. Professional help is separate and varies by complexity. Verify current fee schedules before relying on any number.
For a deeper breakdown, see how much Act 60 costs.
Why defensibility matters
The headline rate is the simple part. The durable value is whether the file can be reviewed before a move, before a sale, and before an audit. Residency, sourcing, basis evidence, and timing all need clean records before a licensed Puerto Rico professional can stand behind a filing.
Next steps
Act 60 FAQ
What is Act 60?
Act 60 is Puerto Rico's consolidated incentives code. It includes investor and export-services incentives that operate through a government-granted decree.
Does this page tell me whether I qualify?
No. This page provides general fit signals only. Eligibility, sourcing, residency, and filing positions must be reviewed by licensed professionals and Puerto Rico authorities.
Why does December 31, 2026 matter?
Under current law (Act 38-2026, pending final FOMB endorsement), the 0% investor rate window is tied to decree applications filed on or before December 31, 2026. Rates and deadlines may change.