Delerme CPA | Puerto Rico Tax Incentives

For years, I’ve helped entrepreneurs and investors take advantage of Puerto Rico’s Act 60. Most people hear 4% corporate tax or 0% capital gains and stop there, and yes, those benefits can be life-changing for business owners and investors. But that’s just the headline. What keeps people here long-term, and what keeps me coming back every few weeks, is something deeper: the lifestyle. Growing up in Puerto Rico was a… Read More

Puerto Rico’s Act 60 is one of the world’s most generous tax incentive regimes. But before you start visualizing huge savings, the real question is: Do you qualify? Whether you’re an entrepreneur with exportable services or a high-income investor seeking capital gains relief, knowing the eligibility criteria is essential. In this article I walk through how Act 60 works, who can qualify, how the tests are applied practically, and where… Read More

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

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

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

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