Act 60

Treasury Reviews Act 60 Decree Compliance for Newest Beneficiaries

The Puerto Rico Treasury Department has launched a compliance review targeting Act 60 decree holders who registered in the past two years, focusing on residency requirements and investment thresholds. Officials say the review is routine and aims to ensure the tax incentive program is functioning as intended.

Jun 19, 2026·via El Nuevo Día

Senate Panel Proposes Stricter Community Investment Rules Under Act 60

A Senate subcommittee advanced a bill this week that would require Act 60 export-services decree holders to contribute a higher percentage of annual earnings to approved Puerto Rico community development funds. Proponents argue the change better aligns tax benefits with broader island development goals.

Jun 17, 2026·via NotiCel

Background

Puerto Rico's Act 60 Incentive Code

Act 60 of 2019 — formally the "Puerto Rico Incentives Code" (Ley 60-2019) — is an omnibus law that consolidated dozens of prior tax incentive statutes, most notably Act 20 of 2012 (export services) and Act 22 of 2012 (individual investors). Its two headline programs offer an Export Services decree (roughly 4% corporate income tax on qualifying export revenues) and an Individual Resident Investor decree (0% Puerto Rico tax on capital gains, interest, and dividends accrued after an individual establishes bona fide residency). The law is administered by DDEC, Puerto Rico's Department of Economic Development and Commerce, and requires applicants to meet IRS-defined residency and presence tests, purchase a home on the island, and make annual charitable donations to Puerto Rican nonprofits. Act 60 has been praised for attracting outside investment and criticized for contributing to rising housing costs and displacement of long-term residents; the IRS has also increased scrutiny of compliance with the bona fide residency requirements.

Act 60 (2019) consolidated earlier incentives — chiefly Act 20 (export services, 2012) and Act 22 (individual investors, 2012).
Export Services decree: ~4% corporate income tax on qualifying revenues from services exported outside Puerto Rico.
Individual Resident Investor decree: 0% Puerto Rico tax on capital gains, interest, and dividends accrued after becoming a bona fide PR resident.
Residency requirements include an IRS presence test (183+ days/year in PR), purchasing a home on the island, and an annual charitable donation to Puerto Rican nonprofits.
Controversial: critics link Act 60 migration to housing cost increases and displacement; the IRS has targeted non-compliant filers.

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