Photo: Rosemary Media / Unsplash
Home / Act 60 / Export Services
Act 60 · Businesses
Export services: the business side of Act 60
A Puerto Rico business that performs services on the island for clients located elsewhere can apply for a decree that taxes that income at 4%. Act 38-2026 rewrote the individual investor rules and left this program unchanged.
Eligible services
DDEC approves the activity in each decree. Commonly eligible services include management consulting, software and technology, advertising and marketing, financial and investment services, research and development, legal and accounting, engineering and architecture, call centers, telemedicine, education and training, and creative services.
The no nexus rule
The service must be performed in Puerto Rico for a client located outside Puerto Rico, and it must not relate to that client's trade or business in Puerto Rico.
- Qualifies: a San Juan consulting firm advises a Chicago client on the client's operations in Illinois.
- Does not qualify: the same firm advises the same Chicago client on the client's new hotel in Puerto Rico. The work is tied to activity on the island.
What the business must have
- A real operation in Puerto Rico: a bona fide office, with the work actually performed on the island.
- At least one full time Puerto Rico resident employee once annual business volume exceeds $3 million. Below that threshold there is no statutory headcount, but the operation must still be genuine.
- An annual report to DDEC's Office of Incentives with its fees, plus the entity's Department of State filings.
Business owners and the individual decree
Owners who move to Puerto Rico often hold both: an export services decree for the company and a Resident Individual Investor decree for their personal investment income. The individual decree carries the primary residence requirement; the business needs office space. We research both.
Questions
What is the Act 60 export services tax rate?
4% Puerto Rico income tax on eligible export services income, with a 100% exemption on dividends paid from that income to Puerto Rico resident owners.
Did Act 38-2026 change export services?
No. Act 38-2026 rewrote the individual investor chapter. The export services rate and dividend exemption remain in place.
How long does an export services decree last?
Fifteen years, renewable for another fifteen if the business stays in compliance.
Sources
Facts checked October 26, 2026. General information, not tax or legal advice. Some practitioners describe reduced rates for smaller operations; ask your attorney whether any apply to you.
Relocating a business
A home, and a place to work.
Tell us where your team will be and how you live. We will short list homes and point you to the right professionals.
Relocation brief
No account needed. We reply personally, usually within one business day.