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Individual Investors

Act 60 Tax Incentives / Individual Investors

What is the Individual Investors tax decree?

Puerto Rico’s Act 60 Individual Investor tax decree is one of the most competitive tax advantages around, for individuals. 
Note that this incentive was previously known as Act 22.

Decree holders enjoy a total exemption from Puerto Rico income taxes on all passive income earned or accrued after becoming residents of Puerto Rico. Individual Investor grantees who are also US citizens would also pay no IRS tax on this same passive income.

By creating this incentive under Act 60, Puerto Rico seeks to attract new residents who will bring wealth to the island by purchasing real estate, goods, and services, and by making use of the island’s banking system.

All of these things are geared to accelerate the Puerto Rico economy, creating new jobs for Puerto Rican citizens.

The Puerto Rican government will take at least 30 days to process your application, and may have followed up questions. For both the application process and any additional questions that may be asked, it is ideal to have professional assistance.

Benefits

Individuals who hold an Individual Investor tax decree enjoy
very generous tax exemptions:

  • 0% Puerto Rico and US federal tax on capital gains, dividend, and interest income that qualifies as Puerto Rico sourced income (accrued after relocating and applying for the decree)
  • Option to reduce any tax that may be owed on non-Puerto Rico sourced income to 0% or 10% through certain Puerto Rico investment vehicles
  • 5%-10% tax on capital gains accrued prior to becoming a Puerto Rico resident (depending upon when the asset is sold)

How long is this decree valid?

Individual Investor decrees are valid through December 31, 2035.

How to Qualify

To enjoy these unprecedented benefits, you must apply for an Individual Investor tax decree and establish bona fide residency in Puerto Rico within one year of applying (please see our detailed reference on residency).

To maintain this incentive in good standing, you must:

  • Maintain your bona fide Puerto Rico residency.
  • Contribute at least $10,000 per year to qualifying Puerto Rico charities.
  • Purchase a residential property in Puerto Rico within two years of your application date.
  • File an annual report to the Puerto Rico government.  Currently, the fee to be submitted with this annual report is $5,000.

Application Process

We streamline the process of obtaining your Act 60 Individual Investor decree.  Contact us for a free consultation!

The application process includes:

  • A criminal background check.
  • A non-refundable application fee of $750 to be submitted with your application.
  • A one-time acceptance fee of $5,000 due after the decree is approved, when you accept it.
  • On the application itself, you will need to supply information about your:
    • Net worth
    • Investment activity
    • Residence history
    • Criminal history

We Can Help

Our company helps people like you take advantage of Puerto Rico’s excellent tax incentives!  We can help you determine which tax incentives are right for you, help you plan your residency and relocation strategy, and simplify the entire process for you.

Contact us for a free initial consultation.

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