Buy in Puerto Rico. Pay 4% corporate tax. 0% capital gains.

Act 60 (signed in 2019) consolidates Puerto Rico's previous Acts 20 and 22 into a single incentive code. It offers two main benefits for relocating individuals and businesses: a low corporate tax rate (4%) on PR-sourced earnings under the Export Services decree, and 0% capital gains tax on PR-sourced appreciation under the Individual Investor decree.

U.S. citizens who become bona fide Puerto Rico residents and meet the physical presence requirement (183+ days/year on the island), close a tax home there, and have closer connections to PR than to the mainland. Business decrees require setting up a PR corporation and creating local jobs.

To be considered a bona fide PR resident under Act 60 you need to spend at least 183 days in Puerto Rico during the tax year. There are alternative tests (closer-connection, presence in PR vs. elsewhere) but 183 days is the simplest and most defensible standard.

It depends entirely on your income type and amount. A high-income earner moving capital-gains-heavy investments to PR can save 6 or 7 figures annually. A small-business owner running a service business under the Export Services decree typically saves 25-30% of net income compared to mainland federal+state rates. Run our calculator above for an estimate based on your scenario.

The Individual Investor decree has a $5,000 annual government filing fee plus a $10,000 annual charitable contribution requirement to a PR-based nonprofit. The Export Services decree has its own fees (varies by structure). Initial application costs run $1,500-$5,000 in legal fees depending on complexity.

No. Puerto Rico is a U.S. territory, and you remain a U.S. citizen. You're not renouncing — you're changing your tax residency from a state to a territory. You still file a federal return for non-PR-sourced income but PR-sourced income is taxed only by Puerto Rico under Act 60.

For Act 60 Individual Investor status you must purchase a primary residence in Puerto Rico within 2 years of your decree being granted. There's no specific price threshold but it must be a real home, not a token property. Most decree holders purchase in the $300K-$2M range.

Typical timeline: 2-4 months from application to grant for the Individual Investor decree, 4-8 months for Export Services. We connect you with attorneys who specialize in PR tax decrees and can move quickly when the file is complete.