Puerto Rico 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 you see below.

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)

† 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. 
  • All U.S. banking regulations apply to businesses in Puerto Rico, including the protections afforded 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’s benefits address a variety of sectors, including financial and insurance services, manufacturing farming, creative industries, and air and sea transport.
  • Eligible activities under Act 60 [English version |  Spanish version] now also include blockchain, combined heat and power activities, and recorded live events.
  • 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, permits and other transactions via the Single Business Portal (SBP) , a digital portal that facilitates the ease of doing business in Puerto Rico.
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