Are you a U.S. citizen and want to reduce from paying high tax? You may know the incentive of Puerto Rico Act 60. It is beneficial for entrepreneurs, investors, and high-net-worth individuals to minimize tax and enjoy quality life in Puerto Rico Island.

What is Act 60?

Act 60 is the Puerto Rico tax incentives program, consolidates earlier tax laws (Act 20 and Act 22) for  economic growth by attracting investors and entrepreneurs. The program offers:

• 0% tax on dividends, interest, and capital gains (for individual residents)

• 4% corporate tax rate for eligible businesses exporting services

• 100% tax exemption on distributions from Puerto Rican companies under certain conditions

Who Can Qualify?

To benefit from Puerto Rico Act 60 tax incentives, you must:

• Become a bona fide resident of Puerto Rico (meet presence, tax home, and closer connection tests).

• Apply for and receive an Act 60 decree from the government.

• Commit to certain annual contributions to local nonprofits (mandatory under the program).

Without meeting these residency requirements, U.S. citizens cannot access the full benefits of Puerto Rico’s tax incentives.

Benefits of Puerto Rico Act 60 Tax Incentives

1. Individual Investor Benefits

• 0% tax on capital gains – If you’re a bona fide resident, the profits from investments can be completely tax-exempt.

• 0% tax on dividends and interest – An advantage for investors relying on passive income.

• No federal capital gains tax – Residents are exempt from paying U.S. federal capital gains taxes.

2. Business Incentives (Export Services Act)

Entrepreneurs and companies that qualify under the export services provisions of Act 60 can get:

• 4% corporate tax rate – Compared to the U.S. federal rate of 21% (plus state taxes), this represents a massive saving.

• 100% exemption on dividends – Business owners can distribute profits to themselves without additional Puerto Rico taxation.

• Global competitiveness – Companies can reduce operating costs in Puerto Rico.

3. Lifestyle and Quality of Life Advantages

Liftstyle can also be improvised by relocating to Puerto Rico,

• Year-round warm weather and beaches

• Access to Direct flights in major U.S cities

• A community of entrepreneurs and investors is available in Puerto Rico.

• There is no need for a passport to travel.
  
  

Is Act 60 Right for You?

If you are a U.S. citizen looking to:

• Reduce your overall tax liability,

• Protect your investment gains,

• Expand your business globally

Puerto Rico Act 60 tax incentives provide U.S. citizens to reduce tax and live quality life. This decision require careful planning, and an understanding of residency rules. Christian Kleiner Luxury Real Estate are here for you.  We specialize in helping individuals to find a property in Dorado Beach and San Juan. We ensure to provide you complete guidance so that you could save millions in taxes by getting benefit of Act 60. For personal assistance, contact Christian Kleiner directly at (847) 624-9074.

Read More:

Top 10 Luxury Homes for Sale in Dorado Beach Right Now

FAQS:

What are the benefits of Act 60 in Puerto Rico?

Act 60's key benefits include a 0% tax on Puerto Rico-sourced capital gains, dividends, and interest, plus a 4% corporate tax rate for export services. It also offers substantial property tax discounts and requires bona fide residency on the island to qualify.

What are the tax incentives for individuals in Puerto Rico?

The primary individual tax incentives are a 0% tax rate on long-term capital gains, interest, and dividends earned after establishing residency. This is paired with a territorial tax system that exempts Puerto Rican income from federal taxation, creating a powerful wealth preservation structure.

Is it worth moving to Puerto Rico to avoid tax?

For high-net-worth individuals with significant investable assets or business income, it can be financially worth it. However, it requires a genuine commitment to moving your life to the island, as strict residency rules must be met to maintain the tax benefits.

Act Now, Benefit for Years

Are you ready to enjoy zero capital gains tax, sunshine all year, and the peace of mind that your wealth is protected? Puerto Rico’s Act 60 makes it possible but only if you plan correctly and meet the requirements. I work with investors and entrepreneurs every day who want to make this move the right way. From finding your luxury property to understanding residency rules, I’ll guide you through every step.

Book your consultation and let’s discuss how Act 60 can work for you.

— Christian Kleiner