Act 60 in 2026, and the home it requires

Why Puerto Rico

Puerto Rico is a United States territory. It uses the U.S. dollar, U.S. federal courts, and U.S. banking regulation, and U.S. citizens travel to and from the mainland without a passport. That combination, a Caribbean home under familiar legal and financial systems, is why Act 60 draws relocating investors and business owners rather than short stay visitors.

What changed in 2026

• Two tracks for individuals, set by filing date. Applications received by December 31, 2026 are treated as requesting the 0% rate with a decree ending December 31, 2035. Applications filed after that date are taxed at 4% with a decree running to December 31, 2055.
• A new look back for later applicants. Applicants filing before January 1, 2027 must not have been Puerto Rico residents between January 17, 2006 and January 17, 2012. Applicants filing after December 31, 2026 must not have been residents during the six years immediately before relocating.
• Stricter home ownership for later applicants. From January 1, 2027, the primary residence must be owned directly, jointly with a spouse, or through a qualifying trust. See the home requirement.
• Existing decree holders keep their terms and may request extension to 2055 at the 4% rate, no later than December 31, 2035.
• Business incentives were not changed. The export services program still offers 4% and a 100% dividend exemption.

The Department of Economic Development and Commerce (DDEC) published its implementing guidance in Informative Bulletin 2026-004 on April 24, 2026. Rules and their interpretation can change; confirm your situation with a Puerto Rico tax attorney.

Questions

What is the Act 60 deadline in 2026?

Resident Individual Investor applications received by 11:59 p.m. on December 31, 2026 are treated as requesting the 0% rate on dividends, interest, and post residency capital gains, with a decree ending December 31, 2035. Applications filed later are taxed at 4% under Act 38-2026.

Does Act 60 require buying a home in Puerto Rico?

Yes for individual investors. Decrees commonly require buying a primary residence in Puerto Rico within two years. For applications filed from January 1, 2027, it must be owned by you, jointly with your spouse, or through a qualifying trust.

Did Act 38-2026 change the export services incentive?

No. Qualifying export services businesses still receive a 4% income tax rate and a 100% exemption on dividends paid from decree income.

Is ORAVISTA a tax advisor?

No. We help with the home: research, short lists, and introductions to licensed real estate professionals. For the decree, work with a Puerto Rico tax attorney. We can share names on request.