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
15
years standard tax exemption grant period

(with potential to renegotiate for an additional 15 years)

DOWNLOAD ACT 60 E-BOOK
† From Securities and Digital Assets (Eligible Investments) and Capital gains and other investment income sourced to Puerto Rico not subject to federal income taxes.

Local Incentives Build On Business Stability

  • Puerto Rico offers the same operational security, stability, and protections as the United States.
  • U.S. federal law applies in Puerto Rico, including intellectual property and patent protection. 
  • The U.S. dollar is the official currency, and capital can be freely moved on and off the island. 
  • Puerto Rico falls under the regulatory oversight of the Federal Reserve Bank of New York, which is the largest among the 12 regional Reserve Banks in terms of assets and activity volume. Additionally, Puerto Rico is protected by the Federal Deposit Insurance Corporation (FDIC).
  • Manufactured goods can be labeled as “Made in USA,” a valuable sign of credibility that inspires trust among customers around the world. 
  • Puerto Rico offers local benefits supported by the national business infrastructure of the United States.

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.
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