Duane Roberts 
Puerto Rico has become an attractive destination for investors seeking tax-efficient opportunities, largely due to the introduction of Act 60. Commonly known as the puerto rico tax incentives act60, Act 60 consolidates and expands upon previous tax laws to provide significant benefits for individuals and businesses. For investors, these incentives translate into reduced tax obligations, making Puerto Rico a unique environment where investment growth and personal wealth can be maximized.
Overview of Act 60
Act 60 was established to encourage economic development, attract investors, and create jobs on the island. It offers favorable tax treatment to both individual residents and business owners who meet eligibility requirements. By relocating to Puerto Rico and becoming bona fide residents, investors can access these incentives while also contributing to the island’s economy. The law is structured to appeal to entrepreneurs, service providers, and investors across various industries.
Individual Investor Benefits
One of the most notable aspects of Act 60 is the Individual Resident Investor Incentive. This provision offers qualified residents a 100% tax exemption on all dividends and interest earned after moving to Puerto Rico. Additionally, long-term capital gains that accrue after becoming a resident are also fully exempt from Puerto Rico income taxes. This provides a powerful incentive for investors to establish residency and manage their investments from the island, as they can retain more of their earnings compared to traditional U.S. tax systems.
Business and Export Services Incentives
For business owners, Act 60 includes the Export Services Incentive, which applies to companies providing eligible services from Puerto Rico to clients outside the island. Qualified businesses benefit from a reduced corporate tax rate of 4% and a 100% exemption on dividends paid from the business to its owners. This allows entrepreneurs to build and expand companies while keeping tax obligations at a minimum, thereby making Puerto Rico a hub for service-based industries such as consulting, finance, and digital enterprises.
Real Estate and Relocation Advantages
Investors relocating to Puerto Rico under Act 60 often find additional advantages beyond direct tax savings. The growing demand from new residents has created opportunities in real estate investment, both residential and commercial. With more professionals and entrepreneurs moving to the island, there is potential for strong returns in property markets. Moreover, the act makes relocation financially appealing by combining lifestyle benefits with significant financial incentives.
Requirements for Eligibility
To benefit from Act 60, investors must become bona fide residents of Puerto Rico. This involves meeting criteria such as spending a minimum of 183 days on the island each year, establishing a primary residence, and showing stronger ties to Puerto Rico than to any other location. Once these conditions are met, investors can enjoy the substantial tax reductions offered. It is important for individuals to fully understand compliance requirements to maximize benefits while adhering to the law.
Impact on Investors and the Island
For investors, the appeal of Act 60 lies in its ability to reduce tax burdens while offering opportunities to grow wealth. For Puerto Rico, the incentives bring new residents, businesses, and capital to stimulate economic development. This creates a mutually beneficial arrangement, where investors gain significant savings, and the island benefits from job creation, increased spending, and industry growth.
Conclusion
Puerto Rico’s Act 60 serves as a powerful tool for attracting investors by providing substantial tax incentives and reduced obligations. Through exemptions on dividends, interest, and capital gains for individuals, as well as reduced corporate tax rates for businesses, the act creates a tax-friendly environment that supports long-term financial success. At the same time, it strengthens Puerto Rico’s economy by encouraging relocation, investment, and entrepreneurship. For investors seeking a tax-efficient strategy combined with lifestyle advantages, Act 60 presents a compelling opportunity.
