Act 60 – Puerto Rico’s Tax Incentive Blueprint

When working with Act 60, Puerto Rico’s consolidated tax incentive law that merged the former Acts 20 and 22. Also known as the Incentives Code, it aims to draw investors, entrepreneurs, and export‑service providers by slashing tax rates.

This law is built around four core ideas. First, tax incentives, lower income, dividend, and capital‑gains taxes for qualified participants create a financial edge. Second, the Puerto Rico, a U.S. territory with a unique tax framework provides the legal backdrop that makes those incentives possible. Third, cryptocurrency investors, individuals who hold or trade digital assets can lock in a 0% capital‑gains rate on gains accrued after establishing residency. Finally, the law rewards export services, businesses that provide services to customers outside Puerto Rico with a flat 4% corporate tax. In short, Act 60 encompasses tax incentives, requires Puerto Rico residency, and enables crypto investors and exporters to keep more of their earnings.

Why Act 60 matters for you

If you’re weighing where to set up a crypto portfolio or a consulting firm, Act 60 offers a concrete path to tax efficiency. The law’s eligibility checklist includes a bona fide residency test, a minimum stay of 183 days per year, and a commitment to bring a service or investment activity to the island. Once you meet those criteria, the benefit matrix is straightforward: 0% tax on long‑term capital gains, a capped 4% corporate tax on qualified export income, and exemption from Puerto Rico’s wealth tax. Those numbers translate into real savings, especially for high‑volume traders or SaaS companies looking to scale without the heavy U.S. tax burden.

Beyond raw percentages, Act 60 also shapes how you plan your finances. You’ll need a local address, a Puerto Rican bank account, and compliance with the island’s reporting standards. The process may feel like a checklist, but each step unlocks a layer of the incentive structure. For example, the residency requirement directly influences the tax incentives you can claim, while the export‑service clause determines whether your business qualifies for the reduced corporate rate. Understanding these interdependencies helps you avoid costly missteps and positions you to maximize the law’s upside.

Below you’ll find a curated set of articles that break down every piece of the puzzle: from step‑by‑step residency guides and cryptocurrency tax calculations to deep dives on eligible export services and real‑world case studies. Whether you’re a seasoned trader, a startup founder, or just curious about Puerto Rico’s tax landscape, the collection gives you practical tools to decide if Act 60 fits your strategy and how to make it work for you.