Puerto Rico Act 60 (Individual Resident Investor & Export Services)
United States USA
Puerto Rico's Act 60 of 2019 (the Puerto Rico Incentives Code) consolidated dozens of prior tax-incentive laws — most notably Act 22-2012 (Individual Investors) and Act 20-2012 (Export Services) — into a single unified code effective January 1, 2020.
It is not a visa: as a US territory, Puerto Rico requires no immigration process for US citizens, who can relocate as freely as moving between states. What Act 60 offers instead is a Puerto Rico tax decree layered on top of that existing right to relocate.
Individual Resident Investor decree holders who become genuine bona fide Puerto Rico residents (183+ days per year, primary home, and closer connection to Puerto Rico than to the mainland or any other jurisdiction) pay 0% Puerto Rico tax on qualifying PR-source capital gains, interest, and dividends accrued after the move — a benefit rooted in IRC Section 933's exclusion of PR-source income of bona fide residents from federal tax.
Separately, businesses that export services from Puerto Rico can access a flat 4% corporate tax rate under the Export Services chapter. The programme has drawn sustained local political scrutiny over housing costs and perceptions that wealthy newcomers extract disproportionate benefit; this pressure led to a 2022 increase in the mandatory annual charitable-giving requirement and continues to generate periodic legislative proposals to further tighten eligibility or compliance.
Program Details
- Category
- Other
- Processing Time
- 3 months
- Application Fee
- $750
- Minimum Income
- —
- Minimum Investment
- —
- Family Included
- Spouse and dependents are covered as part of the household relocation and face no separate immigration hurdle (they are already US citizens or otherwise share the applicant's existing US status); each adult who independently wants Individual Resident Investor tax benefits generally needs to separately qualify as a bona fide Puerto Rico resident.
- Path to PR
- No
- Path to Citizenship
- No
- Physical Presence
- Not a visa or immigration status — US citizens and other US nationals may relocate to Puerto Rico as freely as moving between US states. To claim Act 60 tax benefits, however, an individual must qualify as a 'bona fide resident' of Puerto Rico under IRC Section 937, generally requiring: (1) a presence test — at least 183 days in Puerto Rico during the tax year (limited alternative tests exist), (2) a tax home test — the applicant's tax home must be in Puerto Rico, and (3) a closer connection test — a closer connection to Puerto Rico than to the US mainland or any foreign country, evidenced by a primary home, family location, and registrations (driver's license, voter registration, vehicles) based in Puerto Rico.
- Dual Citizenship
- Allowed
- Tax Impact
- Bona fide Puerto Rico residents are, under IRC Section 933, excluded from US federal income tax on Puerto Rico-source income. Layered with an Act 60 Individual Resident Investor decree, this delivers 0% Puerto Rico tax on PR-source capital gains, interest, and dividends realised after the decree date and the establishment of bona fide residency — only gains accrued after relocating are covered; pre-move built-in gains generally remain subject to federal capital gains tax, subject to a bifurcation/phase-in rule tied to how long the asset is held post-move. Separately, Act 60's Export Services chapter (successor to Act 20) offers a flat 4% Puerto Rico corporate tax rate on eligible income from services exported to clients outside Puerto Rico, plus a substantial exemption on distributions of those earnings to Puerto Rico resident shareholders. This is the only route by which a US citizen can materially reduce federal tax exposure on qualifying investment and export-services income without renouncing US citizenship.
- Renewal Cost
- $5,000
No minimum income requirement to apply for an Individual Resident Investor decree. Eligibility instead depends on establishing genuine bona fide Puerto Rico residency and not having been a bona fide resident of Puerto Rico during the applicable historical look-back period tied to the original 2012 enactment of Act 22 — in practice a non-issue for the large majority of applicants today.
Key Requirements
- ✓Not a visa requirement — applicants simply need the legal right to live in Puerto Rico long-term (automatic for US citizens)
- ✓File a tax incentive decree application with Puerto Rico's Department of Economic Development and Commerce (DDEC) — separate decrees exist for Individual Resident Investor benefits (0% PR capital gains) and Export Services benefits (4% corporate tax)
- ✓Establish bona fide Puerto Rico residency under the IRS three-part test (presence, tax home, closer connection) — generally 183+ days per year in Puerto Rico
- ✓Purchase (not merely rent) a residential property in Puerto Rico within 2 years of the Individual Resident Investor decree, to be used as the applicant's primary residence
- ✓Make an annual charitable donation to Puerto Rico-based nonprofits — increased in recent years to a total of USD 10,000/year, with a portion earmarked for organisations addressing child poverty
- ✓File an annual compliance report with DDEC and pay the associated filing fee to maintain decree status
- ✓For Export Services benefits: operate a genuine services business exporting to clients or customers outside Puerto Rico, and hire at least one bona fide Puerto Rico-based employee once gross revenues exceed the statutory threshold
Am I eligible for Puerto Rico Act 60 (Individual Resident Investor & Export Services)?
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Nationality eligibility
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This is a heuristic, not a determination. Final eligibility depends on full documentation and immigration-officer discretion.
Nationality Restrictions
This program restricts applications from nationals of: Available to US citizens and other nationalities alike, since Puerto Rico is a US territory and Act 60 is a Puerto Rico tax-incentive law rather than an immigration programme; non-US-citizen applicants would separately need independent US immigration status before they could establish bona fide Puerto Rico residency
Application Process — Step by Step
- 01
Confirm bona fide residency eligibility
home countryConfirm you were not a bona fide Puerto Rico resident during the applicable historical look-back window and are genuinely prepared to relocate your tax home, primary residence, and closer connection to Puerto Rico.
Typical duration: 2-4 weeks of planning
- 02
Engage Puerto Rico tax counsel and prepare the Act 60 decree application
home countryRetain a Puerto Rico-licensed tax attorney or CPA to prepare the Individual Resident Investor and/or Export Services decree application for DDEC.
Typical duration: 4-8 weeks
- 03
Submit the decree application to DDEC
destinationFile the tax incentive decree application with the Department of Economic Development and Commerce. Pay the acceptance/filing fee.
Typical duration: 8-16 weeks for decree approval
- 04
Relocate and establish bona fide residency
destinationMove to Puerto Rico and satisfy the IRS bona fide residency tests: 183+ days per year, tax home in Puerto Rico, and closer connection to Puerto Rico than to any other jurisdiction (driver's license, voter registration, and primary home based in PR).
Typical duration: Ongoing, tracked annually
- 05
Purchase a primary residence in Puerto Rico
destinationIndividual Resident Investor decree holders must purchase (not rent) a residential property in Puerto Rico within 2 years of the decree, to serve as their primary residence.
Typical duration: Within 24 months of decree
- 06
File the first annual compliance report
destinationSubmit the annual report to DDEC confirming continued bona fide residency and proof of the required annual charitable contribution.
Typical duration: Annually
Documents Required
| Document | Issued By | Apostille | Translate to | Validity (days) |
|---|---|---|---|---|
| Government-issued photo ID / passport | US federal or state authority | No | — | — |
| Proof of prior non-PR residency (mainland tax returns, utility bills) | IRS / mainland state authorities | No | — | 365 |
| Individual Resident Investor / Export Services decree application | Applicant, via PR tax counsel | No | — | — |
| Proof of Puerto Rico residential property purchase | PR notary / property registry | No | — | — |
| Proof of annual charitable donation to PR nonprofits | PR-registered nonprofit organisation | No | — | 365 |
Realistic Costs
Some figures below are industry estimates rather than officially verified: lawyer_fee_low, lawyer_fee_high, relocation_misc, total_first_year_low, total_first_year_high, total_5_year_low, total_5_year_high.
Excludes the mandatory residential property purchase, which is a separate six-figure-plus cost in most Puerto Rico real estate markets, and excludes the ongoing annual charitable-giving obligation (currently ~USD 10,000/year) and annual DDEC compliance filing fee (~USD 5,000/year), both of which are included cumulatively in the 5-year range. Legal/accounting setup costs tend to be substantial given the complexity of qualifying as a bona fide resident and structuring an Export Services entity correctly.
Realistic Timeline
- Consulate wait0–0 weeks
- Decision → arrival0 weeks
- Residence card issuance12 weeks
- Total to residence card8–20 weeks
No consulate or visa process applies since this is a domestic US relocation. DDEC decree processing times have varied with application volume, which surged sharply after 2020 as remote-work and crypto wealth relocated to Puerto Rico; applicants working with specialised PR tax counsel generally report faster turnaround.
Renewal
- First renewal after
- 12 months
- Subsequent cycle
- 12 months
- Renewal fee
- $5,000
- Requirements
- Annual compliance report to DDEC confirming continued bona fide residency, proof of the required annual charitable contribution (currently a total of roughly USD 10,000, split between a child-poverty-focused nonprofit and another Puerto Rico nonprofit), and continued primary residence in Puerto Rico.
Path to Permanent Residency — Details
- Years required
- 0
- Integration test
- Not required
Path to Citizenship — Details
- Years required
- 0
- Language test
- No
- Civic test
- Not required
- Oath
- Not required
- Dual citizenship
- Allowed
Tax Residency
Some details in this section are industry estimates or general guidance rather than officially verified — confirm against the official source before relying on them.
- Trigger
- 183 days/year of presence
- Taxation scope
- Territorial (in-country only)
- Exit-tax country
- No
Special regimes
- Individual Resident Investor (Act 60, successor to Act 22)0% Puerto Rico tax on qualifying PR-source capital gains, interest, and dividends accrued after establishing bona fide residency and receiving the decree
Bona fide Puerto Rico residents (183+ days/year, PR tax home, closer connection to PR) holding an Individual Resident Investor decree; requires a PR primary-residence purchase within 2 years and ongoing annual charitable giving and compliance filings
source ↗ - Export Services (Act 60, successor to Act 20)4% flat Puerto Rico corporate tax on eligible export-services income, plus a substantial exemption on distributions of those earnings to PR resident shareholders
Businesses genuinely exporting services from Puerto Rico to clients/customers outside Puerto Rico; must hire at least one bona fide PR-based employee once gross revenue exceeds the statutory threshold
Duration: 15 years
source ↗
Health Insurance
- Mandatory
- No
- No co-pay required
- No
Banking Setup
- Open account before arrival
- Possible with bridge fintechs
Bridge fintechs
Local banks accepting applicants
Banco Popular de Puerto Rico, Oriental Bank, FirstBank Puerto Rico
Family Specifics
- Spouse work rights
- Spouse, as a US citizen or existing US resident, already has full right to live and work in Puerto Rico with no separate authorisation needed
- Child school enrolment
- Full access to Puerto Rico's public school system (bilingual Spanish/English in many areas); private and American-curriculum schools are available in the San Juan metro area
- Parent inclusion
- Eligible
- Sibling inclusion
- Eligible
Gotchas — Things to Watch For
- ⚠Not actually a 'visa' — no immigration application is required for US citizens; the entire benefit is a Puerto Rico tax-decree programme layered on top of ordinary US citizenship rights
- ⚠Only income/gains accrued AFTER establishing bona fide PR residency and receiving the decree qualify for the 0% rate — built-in gains on assets held before the move generally remain subject to full federal capital gains tax
- ⚠Both the IRS and Puerto Rico's treasury have increased audit scrutiny of 'paper resident' claims — maintaining a mainland home, mainland driver's license, or spending significant time outside PR can disqualify bona fide residency and trigger back taxes and penalties
- ⚠Applies only to PR-SOURCE income; income from a mainland-based business generally remains fully taxable at ordinary federal rates even if the owner personally lives in Puerto Rico
- ⚠Growing local political backlash over housing costs and perceptions of inequitable benefit has led to periodic legislative proposals to tighten or sunset Act 60 incentives — current decree holders have historically been grandfathered under their original terms even when rates for new applicants were revised
What This Visa Does NOT Allow
- ×Does not exempt federal tax on income earned from work physically performed outside Puerto Rico, or on capital gains accrued before establishing PR residency
- ×Does not exempt holders from federal payroll/self-employment tax (Social Security/Medicare) on PR-source wages or self-employment income — the 0% benefit applies specifically to qualifying passive investment income and Export Services corporate profits, not ordinary wage income
- ×Does not grant any immigration status — offers no benefit to non-US-citizens who lack independent US immigration status
Before You Arrive — Checklist
- Engage Puerto Rico tax counsel
- Confirm bona fide residency look-back eligibility
- Plan the required primary-residence property purchase
- Begin winding down mainland ties (driver's license, voter registration, primary home)
After You Arrive — Checklist
- Register a Puerto Rico driver's license and voter registration
- Purchase a primary residence within 2 years of the decree
- Make the required annual charitable donations
- File the annual compliance report with DDEC
- Track day-count carefully against the 183-day presence test
Common Rejection Reasons
- •Failure to satisfy the historical look-back exclusion for prior Puerto Rico residency
- •Insufficient evidence of 'closer connection' to Puerto Rico — maintaining a mainland home, mainland driver's license, or voter registration undermines the claim
- •Incomplete decree application documentation
- •Failure to genuinely relocate — both the IRS and Puerto Rico's own tax authority have increased audit scrutiny of 'paper resident' claims that don't reflect real day-count and closer-connection facts
Recent Legislative Changes
2022-01-01
Annual charitable-contribution requirement for Individual Resident Investor decree holders increased from USD 5,000 to a total of roughly USD 10,000/year, with a portion earmarked for Puerto Rico nonprofits addressing child poverty, amid criticism that the original programme extracted too little local benefit relative to the tax savings granted to newcomers.source ↗
2020-01-01
Act 60-2019 (the Puerto Rico Incentives Code) consolidated dozens of prior incentive laws — including Act 20 (Export Services) and Act 22 (Individual Investors) — into a single unified code, effective January 1, 2020. Decrees issued under the earlier Acts 20/22 remain grandfathered under their original terms.source ↗
Last known legislative update for this programme: 2022-01-01.
Frequently Asked Questions
Do I need a visa to move to Puerto Rico?+
No. Puerto Rico is a US territory, so US citizens and nationals can relocate there exactly as they would move between states — no visa, green card, or immigration application is required.
Is the 0% capital gains rate really 0%?+
Only for Puerto Rico-source capital gains, interest, and dividends accrued after you become a bona fide Puerto Rico resident and hold a valid Individual Resident Investor decree. Gains that had already accrued before you moved generally remain subject to federal capital gains tax when realised, subject to a phase-in rule tied to how long you've held the asset post-move.
What is the 4% corporate tax under Act 60 Export Services?+
Businesses that genuinely export services from Puerto Rico to clients or customers outside Puerto Rico can qualify for a flat 4% Puerto Rico corporate tax rate on eligible income, plus a substantial exemption on distributions of those earnings to Puerto Rico resident shareholders. This is the successor to the original Act 20 of 2012.
Can I lose my Act 60 decree?+
Yes. Decree holders must maintain genuine bona fide Puerto Rico residency (183+ days/year, PR tax home, closer connection) and meet ongoing compliance obligations, including the annual report and charitable-giving requirement. Both the IRS and Puerto Rico's tax authority have increased scrutiny of applicants who claim the benefits without genuinely relocating.
Do I still owe any US federal tax if I qualify under Act 60?+
Yes, in many cases. Act 60 and IRC Section 933 only exempt Puerto Rico-source income for bona fide PR residents. Income from a mainland-based business, pre-move capital gains, and non-PR-source income generally remain subject to ordinary federal tax rules.
Good Fit For
Applying from a specific country? Your home-country tax rules, banking access, and dual-citizenship options affect every programme differently. Browse nationality guides → for tax obligations, renunciation rules, and second-passport routes.
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