PR
Act 60 - Individual Investor (Chapter 2)
Active
Exemption
Puerto Rico · special tax regime
Flat rate
0.0%
Duration
15 years
Prior non-residency
6 years
required before applying
Standard top income tax
33.0%
Puerto Rico, without the regime
Overview
- Regime
- Act 60 - Individual Investor (Chapter 2)
- Country
- Puerto Rico
- Type
- Exemption
- Status
- Active
- Effective from
- Jan 1, 2012
- Expires on
- —
Details
- Summary
- Formerly Act 22. Provides 0% tax on qualifying capital gains, dividends, and interest for individual investors who become bona fide PR residents.
- Eligibility
- Individual investors who become bona fide residents of PR (183+ days, tax home, closer connection). Must not have been a PR resident in the prior six years (PC 505, signed March 2026).
- Benefits
- 0% on qualifying dividends, interest and capital gains under decree terms for investors who relocate before 2027; 4% on those income types for investors relocating from 2027 onward (PC 505). Exempt from US federal tax on PR-source income.
- Requirements
- Must purchase residential property in PR within 2 years. Must make annual USD 10,000 charitable donation to PR nonprofit. Must be bona fide resident (183+ days, closer connection).
- Limitations
- From 2027, new individual investors under Chapter 2 pay 4% on net capital gains, interest and dividends (PC 505). Grandfathered treatment applies to those who relocate before 2027, subject to decree terms. IRS scrutiny on bona fide residency and income sourcing.
- Income types covered
- Capital gains on securities, dividends, interest income. Must be earned after establishing PR residency.
- Duration details
- 15-year decree term.
Other regimes in Puerto Rico
| Name | Type | Rate |
|---|---|---|
| Act 60 - Export Services (Chapter 3) | Flat rate | 4.0% |
View source AAFAF Act 60 announcement