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
Archives for September 2025
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