Moving from the U.S. mainland to Puerto Rico offers not just a change in geography, but an extraordinary transformation in financial stability, business potential, and cultural ease. Let’s explore how Puerto Rico makes relocation both smooth and compelling.
1. A Territory, Not a Foreign Country
Puerto Rico is a U.S. territory where the U.S. dollar is the official currency, federal law applies fully—including protections for intellectual property, patents, and banking under U.S. standards—and no passport is required for U.S. citizens.
2. 4% Business Tax Rate
Under Puerto Rico’s Incentives Code (Act 60), formerly Acts 20 and 22, businesses that export services to clients outside Puerto Rico enjoy an attractive 4% fixed income tax rate, dramatically lower than corporate tax burdens on the mainland.
3. 0% Tax on Capital Gains
For individuals and investors, Act 60 provides a full exemption (100%) on capital gains sourced from Puerto Rico, or from investments made after establishing bona fide residency.
4. Bilingual & Bicultural Workforce
Puerto Rico offers a highly educated, bilingual (English/Spanish) workforce that costs about 30–35% less than comparable U.S. mainland labor, yet operates under American labor and legal frameworks.
5. Trusted Business Infrastructure
- Manufactured goods in Puerto Rico can still be labeled “Made in the USA.”
- U.S. banking laws and FDIC protections apply, with oversight from the Federal Reserve Bank of New York.
- Legal protections (federal law, intellectual property, etc.) are in full force.
6. Familiarity of U.S. Federal Law & Regulations
Puerto Rico operates under U.S. trademark, patent, contract, and banking laws, so U.S. businesses don’t face foreign legal systems when they relocate.
The Power of Act 60’s Tax Breaks and Beyond
Here’s how Act 60 creates a transformative tax environment:
| Benefit | Description |
| 4% Income Tax | Applies to eligible export services, like consulting, software, finance, legal, and more—versus much higher mainland rates. |
| 100% Capital Gains, Dividends, Interest Exemption | No Puerto Rican tax on qualifying passive income. |
| Property & Municipal Tax Relief | Includes 75% exemption on property tax and municipal license tax, plus franchise benefits. |
| Long-Term Terms | Incentive decrees typically span 15 years and may be renewed. |
*These combined benefits vastly reduce effective tax rates compared to many U.S. states (e.g., California, New York, New Jersey)
Real Benefits… With Focus Required
- Bona fide residency is mandatory to qualify for the investor’s decree—meaning at least 183 days on the island annually, establishing your tax home in Puerto Rico, and showing closer community and economic ties.
- The IRS audits bona fide residency, requiring robust documentation and strategic representation when answering audit requests.
Real Story: Hassan from Chicago
Let me introduce Hassan, a 52-year-old attorney who moved from Chicago, Illinois to San Juan, Puerto Rico in February 2025.
Who is Hassan?
- Formerly paid approximately 35% federal income tax, plus 3.5–4% Illinois state income tax, plus 10% local tax on personal income.
- His law practice served clients nationally; now, relocated under Act 60 targeting export of professional services.
His Act 60 Benefits
- Pays just 4% income tax on all eligible export-service income.
- Enjoys 100% exemption on capital gains earned after moving (and dividends/interest, if applicable).
- Receives 75% discount on property taxes for his San Juan residence.
Lifestyle and Financial Impact
- Though rent in San Juan costs more than his prior Chicago lease, his net income has increased substantially because of tax savings.
- He reports a better work-life balance, enjoying both financial gains and beach-side living.
Why Puerto Rico Works for U.S. Professionals
- Lower business & personal tax under Act 60.
- Zero passport hassle, U.S. legal framework, “Made in USA” branding.
- Skilled, bilingual workforce, cost-efficient operations.
- Infrastructure & credibility akin to any U.S. jurisdiction.
- Incentive stability, 15-year terms with possible renewal.
- Proven success, as in Hassan’s story—higher net income, better lifestyle, smooth transition.
At Delerme CPA, we guide entrepreneurs and professionals through every step of relocating under Act 60, backed by offices in San Juan, Atlanta, and Miami. Our founder and CEO is a Puerto Rico native with deep roots on the island, and our San Juan team is well-connected within local business circles and governmental agencies. This insider knowledge—paired with our U.S.-based teams—ensures a seamless transition, combining expertise in both jurisdictions to help you establish residency, maximize tax benefits, and protect your new status with confidence.
Your Next Move:
Let us support you—so you, too, can thrive like Hassan.
Evaluate current tax burdens back home.
Plan bona fide residency with care and tracking.
Apply for Act 60 decree, set up Puerto Rico-sourced income structures.