Over the past few years, a noticeable shift has taken place among high-net-worth individuals across the United States. A recent New York Post report on wealth migration trends identified Puerto Rico as one of the emerging destinations attracting ultra-wealthy relocators. The report reflects a broader shift away from traditional high-tax states such as New York and California toward tax-efficient jurisdictions. One destination consistently entering that conversation is Puerto Rico.

Puerto Rico Act 60 is the main reason for relocating to the island. Although lifestyle and climate are attractive, the tax structure under Act 60 plays a bigger role in relocation decisions. Because the program requires individuals to establish true residency, many are purchasing full-time homes rather than vacation properties.

Understanding Puerto Rico Act 60

Puerto Rico Act 60, signed into law in 2019 and extended through 2055, consolidates several tax incentive programs designed to attract investors and entrepreneurs to the island. For qualifying individuals, Act 60 offers:

• 0% federal tax on certain capital gains

• 4% corporate tax rate for eligible export services businesses

• Attractive dividend treatment under specific structures

• Long-term legal stability under U.S. jurisdiction

• A 183-day physical presence requirement to maintain residency

Act 60 requires commitment, compliance, and careful planning, including true relocation and integration into Puerto Rican residency. For a structured overview of eligibility requirements, residency thresholds, and tax implications under Act 60, you can explore Act 60 Tax Incentive Guide designed by Christian Keliner for high-net-worth individuals evaluating relocation.

Why Act 60 Increases Demand 

1. Real Relocation

Act 60 requires individuals to spend at least 183 days per year in Puerto Rico. This is not a passive investment play; it involves establishing a primary residence. As a result, buyers are not searching for secondary vacation condos. They are purchasing high-quality, long-term residences in prime areas such as:

• Condado

• Dorado Beach

• Old San Juan

• Isla Verde

2. Influx of Entrepreneurial Capital

It includes,

• Tech founders

• Hedge fund managers

• Crypto investors

• E-commerce entrepreneurs

• Export service company owners

3. Strong Price Signals in Prime Areas

Puerto Rico remains more affordable compared to Manhattan or coastal California, luxury pockets are seeing tightening inventory and competitive pricing. High-end properties in desirable communities are absorbing quickly, particularly those offering:

• Backup power systems

• Water cisterns

• Hurricane-resistant construction

• Proximity to business hubs
  
  

Why Puerto Rico Is Attractive to High-Net-Worth Buyers

U.S. Legal Framework

Puerto Rico operates under U.S. federal jurisdiction. For investors, this provides legal familiarity, banking access, and regulatory stability compared to international relocation options.

Lifestyle and Connectivity

Direct flights to major U.S. cities make business continuity practical. The island offers:

• Year-round warm climate

• Coastal living

• Strong private education options

• Growing professional communities

What High-Net-Worth Buyers Should Evaluate Before Relocating

1. Residency Compliance

Spending 183 days physically present is mandatory. Buyers should realistically evaluate lifestyle alignment before committing.

2. Insurance and Infrastructure

Storm preparedness, generator capacity, and water systems are not minor details, they are essential due diligence components in Puerto Rico real estate.

3. Liquidity and Exit Planning

Luxury real estate on the island is growing, but it is still a niche market compared to major U.S. metros. Buyers should consider:

• Long-term holding strategy

• Rental viability

• Future resale demand

4. Professional Team Alignment

Successful relocation typically involves:

• Tax advisor

• Legal counsel

• Local real estate advisor

• Compliance specialist

Is Act 60 Sustainable Long-Term?

Act 60 is currently authorized through 2055, providing legal clarity for long-term planners. Participation numbers have steadily increased, and the island has positioned itself as a competitive alternative to traditional tax-heavy states. As demand increases, early entrants often benefit most from pricing inefficiencies and inventory availability. For high-net-worth individuals evaluating relocation, the opportunity is not simply about tax reduction; it is about aligning wealth strategy with lifestyle and asset positioning.

Puerto Rico represents a unique intersection of tax efficiency, lifestyle quality, and real estate opportunity. It requires a clear understanding of residency compliance, capital gains treatment, long-term wealth positioning, and the realities of the Puerto Rico luxury real estate market for relocation. If you would like to discuss how these factors apply to your specific situation, you can schedule a consultation with Christian Kleiner to review your relocation strategy and available luxury opportunities.

FAQS

What is the Puerto Rico Act 60?

Puerto Rico Act 60 is a tax incentive program signed into law in 2019 and extended through 2055. It offers qualified individuals reduced corporate tax rates and favorable capital gains treatment in exchange for establishing bona fide residency in Puerto Rico.

How many days do you need to live in Puerto Rico for Act 60?

To qualify, individuals must spend at least 183 days per year physically present in Puerto Rico and meet residency compliance requirements.

Is Puerto Rico under U.S. law?

Yes. Puerto Rico operates under U.S. federal jurisdiction, which provides legal stability and familiarity for American investors.

Is Act 60 available long-term?

Act 60 is currently authorized through 2055, providing long-term planning clarity for eligible participants.