Act 60 (Puerto Rico’s Tax Incentives Code) attracts attention — and myths. Below I cut through the noise and debunk the ten myths we hear most often. Each answer points to what the law and practical compliance really require, so you can make a sound decision. Myth 1 — “Move here one weekend and you get Act 60 benefits.” Reality: Benefits under Act 60 require meeting legal tests — both… Read More
A Deep Dive on What Puerto Rico Evaluates When Granting Act 60 Tax Incentives
Explaining and Interpreting the Practical Implementation of Act 60 Puerto Rico’s Incentives Code (Act 60) no longer hands out tax breaks on faith. Since consolidation of the incentives under Act 60, the government evaluates requests through an evidence-based Return on Investment (ROI) framework: the island only grants long-term tax relief when it can show measurable economic benefit (jobs, payroll, capital investment, local purchases and other spillovers) that outweighs the fiscal… Read More
Launching an Export Services Business Under Puerto Rico’s Act 60 Tax Incentives
Eligibility, the 4% Tax Rate, and Practical Steps Act 60 (the Puerto Rico Incentives Code) can deliver a legally defensible 4% tax rate on qualifying export-service income plus broad property/municipal and distribution (dividend) benefits — if you structure correctly, demonstrate economic substance on the island, and pass the ROI/job-impact review required by the DDEC. The process is documentation-heavy and compliance-focused; treat it as a business transformation, not a paperwork exercise…. Read More
What Are the Bona Fide Residency Requirements Under Act 60?
A Guide for Compliant Eligibility If you’re exploring Puerto Rico’s Act 60 incentives, or planning to move to Puerto Rico, navigating bona fide residency requirements is mission-critical. This guide lays out everything you need to know: the federal “three-test” standard, Act 60-specific administrative obligations, documentation strategies, audit risk insights, and a compliance checklist. Why Bona Fide Residency Matters Puerto Rico’s Act 60 offers incredible tax incentives for individual investors and business… Read More
Act 60’s Promise vs. Reality: Why “DIY” Can Cost You—and How Boots on the Ground Change the Outcome
The headline pitch is intoxicating: a 4% corporate tax rate on eligible export services and 0% Puerto Rico tax on certain post-residency capital gains. For founders, investors, and operators, that’s the fiscal equivalent of a tailwind and a turbocharger. But here’s the tension, incentives are policy; compliance is practice. On paper, Act 60 is a straight line to savings. In practice, it’s a maze with motion sensors. I’ve spent two… Read More
What Could You Do With an Extra Million Dollars?
Let’s run the math. You sell a $2 million portfolio—stocks, crypto, real estate—at a 50% gain. Congratulations, you just made $1 million. Then the IRS walks in with open arms. Depending on your bracket, federal long-term capital gains alone can take 20%. Add the Net Investment Income Tax (3.8%) and, if you’re in a high-tax state like California or New York, stack another 10–13%. In total, $300,000 to $400,000 of… Read More