Investing

Act 60 explained: incentives and realities for investors

By Kelvin Garcia ValeJuly 5, 20269 min read

What Act 60 is, why it draws mainland capital to Puerto Rico, and what you must verify before counting on any tax benefit.

Act 60 (which consolidated the former Acts 20 and 22) is one of the biggest magnets for capital into Puerto Rico. It's also one of the most misunderstood. Here's the real angle — with the disclaimers an honest professional always includes.

What does it offer in general terms?

  • Incentives for export-services businesses established on the island
  • Benefits for individual investors who become bona fide residents
  • Preferential treatment on certain passive income and qualified capital gains

Bona fide residency is not optional

The individual benefit requires becoming a bona fide resident of Puerto Rico and meeting presence and closer-connection tests. It's not 'buy a house and done.' This is where your home comes in: you need a real place to live, and that's where I help.

Real estate + Act 60: the complete play

For many investors the property is not just a residence: it's also appreciation and rental income. I show you the real numbers on every property with my investment calculator so you decide with data.

Never count on a tax benefit you haven't confirmed in writing with your CPA or attorney.
This article is educational guidance, not legal, tax or financial advice. Confirm your particular situation with your CPA, attorney or lender before deciding.

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