Puerto Rico Tax Incentives: Businesses & Individuals

A Strategic Guide for Businesses, Investors & Relocating Individuals

One of the Most Powerful Tax Incentive Programs in the U.S.

Puerto Rico’s Act No. 60 – The Puerto Rico Incentives Code offers unparalleled tax advantages for qualified businesses and individuals seeking to operate, invest, or relocate within a U.S. jurisdiction. When structured properly, Act No. 60 can reduce corporate income taxes to as low as 4%, eliminate Puerto Rico taxes on qualifying capital gains, and unlock long-term wealth-building opportunities through strategic real estate investment.

At CREIPR, we specialize in aligning real estate, tax incentives, and capital strategy to help clients fully leverage Act No. 60 while maintaining compliance and long-term sustainability.

What Is Act 60?

Act. No. 60 is Puerto Rico’s comprehensive incentives framework designed to promote economic development by attracting businesses, investors, and new residents to the island. It consolidated several legacy incentive laws—most notably Act 20 (Export Services) and Act 22 (Individual Investors) into a single, modernized code.

Act No. 60 offers government-issued tax grant certificates that provide long-term tax stability, often valid through December 31, 2035, giving participants predictability and protection from future legislative changes.

Why Puerto Rico?

Puerto Rico offers a unique combination of benefits unmatched by any U.S. state:

• U.S. jurisdiction & legal system

• U.S. dollar currency

• Strategic geographic location

• Skilled bilingual workforce

• Access to U.S. markets

• Exceptional tax incentives under Act 60

For many businesses and individuals, Puerto Rico represents a rare opportunity to legally optimize taxes while operating within U.S. law.

Act No. 60 Incentives for Businesses

Businesses that provide services from Puerto Rico to clients outside the island may qualify for the Export Services Incentive under Act No. 60.

Key Business Benefits

• Corporate Income Tax: 4% fixed rate

• Dividend Distributions: 100% Puerto Rico tax exemption

• Dividend Withholding: 0%

• Municipal License: Taxes 60%–90% exemption

• Property Taxes (CRIM) Up to 75% exemption

• Tax Grant Term 10–15+ years (often through 2035)

Eligible Business Activities

• Consulting and advisory services

• Technology, SaaS, and software development

• Financial services and back-office operations

• Marketing, digital, and creative services

• Engineering, architecture, and technical services

• Professional and management services

Act 60 Incentives for Individual Investors

Individuals who relocate to Puerto Rico and become bona fide residents may qualify for extraordinary personal tax benefits under Act 60.

Key Individual Benefits

• Capital Gains (Post-Residency): 0%

• Interest Income (PR-Source): 0%

• Dividend Income (PR-Source): 0%

• Puerto Rico Inheritance & Gift Taxes: Potentially 0%

Capital gains accrued before becoming a Puerto Rico resident may be subject to partial taxation depending on realization timing.

Residency Requirements (High-Level)

To qualify, individuals must generally:

• Spend 183+ days per year in Puerto Rico

• Establish a primary residence on the island

• Demonstrate closer personal and economic ties to Puerto Rico

Real Estate: A Critical Component of Act No. 60

Real estate is not optional under Act No. 60 it is a strategic and compliance-driven requirement.

How Real Estate Supports Act No. 60?

• Establishes bona fide residency

• Provides operational substance for businesses

• Qualifies for property tax incentives

• Serves as a long-term wealth preservation asset

Typical Real Estate Strategies

• Primary residences for relocated individuals

• Office and industrial facilities for export services

• Income-producing properties aligned with tax efficiency

• Commercial assets in San Juan, Guaynabo, Dorado, Bayamón, Ponce

Compliance & Ongoing Requirements

Act No. 60 benefits are powerful. but require ongoing compliance:

• Annual filings and reporting

• Business substance and payroll requirements

• Local employment obligations (where applicable)

• Real estate and residency maintenance

• Adherence to grant terms

CREIPR works closely with licensed CPAs, attorneys, and compliance professionals to ensure clients remain in good standing.

How CREIPR Adds Value

At Commercial & Industrial Real Estate Puerto Rico, we integrate:

• Real estate acquisition & leasing

• Act No. 60 structuring alignment

• Investment analysis & underwriting

• Relocation and residency support

• Professional coordination

We don’t sell incentives—we build long-term investment platforms.

Who We Work With

• Export service companies

• Founders and entrepreneurs

• High-net-worth individuals

• Family offices and private investors

• Commercial & industrial operators

Getting Started with Act No. 60?

Step-by-Step Process

• Initial consultation & eligibility review

• Strategy design (business, real estate, residency)

• Coordination with tax & legal professionals

• Incentive application submission

• Tax grant approval

• Implementation & compliance

Important Disclosure

CREIPR does not provide legal or tax advice. All tax planning, legal structuring, and compliance must be handled by licensed professionals. CREIPR provides real estate strategy, investment advisory coordination, and transaction execution.