Tax Benefits & Policy

Act 60 Offers Opportunities

The Puerto Rico Incentives Code (Act 60) helps build a vibrant community by promoting economic growth through investment, innovation and job creation. It offers the following main tax benefits:

4^%

fixed income tax rate on eligible income

100^%

tax exemption on capital gains^†

75^%

exemption on property tax

50^%

exemption on municipal license tax

years standard tax exemption grant period

(with potential to renegotiate for an additional 15 years)

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† From Securities and Digital Assets (Eligible Investments) and Capital gains and other investment income sourced to Puerto Rico not subject to federal income taxes.

Act 60: Benefits & Eligible Activities

Act 60’s benefits address a variety of sectors. Eligible activities under Act 60 [English version |  Spanish version] include export of good and services, individuals, finance, insurance, visitors economy, manufacturing, agriculture, infrastructure, energy, creative industries and entrepreneurship.
Tax exemption decrees have a 15-year term and have the potential to be renegotiated for an additional fifteen years.
Investors can apply for incentives via the Incentives Portal and request permits through the Single Business Portal, two digital portals that facilitate the ease of doing business in Puerto Rico.

Local Incentives Build On Business Stability

As a U.S. jurisdiction, Puerto Rico offers the same level of operational security, stability and protections as the United States, ensuring confident investment:

Official Currency of Puerto Rico:
- The U.S. dollar is the official currency, allowing free movement of capital on and off the island.
Legal Protections:
- U.S. federal law, including intellectual property and patent protection, applies in Puerto Rico.
- Puerto Rico is a distinct tax jurisdiction for IRS purposes.
Banking Regulations in Puerto Rico:
- U.S. banking laws and regulations, including the credibility and protections of the Federal Deposit Insurance Corporation (FDIC), apply.
- The island falls under the regulatory oversight of the Federal Reserve Bank of New York.
Manufacturing Credibility:
- Goods manufactured in Puerto Rico can be labeled as “Made in USA,” adding credibility and trust among global customers.
Puerto Rico’s Business Infrastructure:
- Puerto Rico offers local benefits supported by the national business infrastructure of the United States.