What is the rule 60 in Puerto Rico?

Act 60 is Puerto Rico’s consolidated tax incentive code, passed in 2019, which folded the earlier Acts 20 and 22 (and several smaller programmes) into one statute. The two headline benefits for individuals and businesses moving from the US mainland: a 4 percent corporate income tax rate on qualifying export-services income (the old Act 20 benefit) and 0 percent tax on PR-sourced capital gains, interest, and dividends earned after becoming a bona fide resident (the old Act 22 benefit). To qualify, individuals must establish bona fide PR residency (183 days physical presence test, tax-home and closer-connection tests), purchase a home in PR within two years, and make annual donations to PR-based qualifying charities (currently $10,000 per year). Application fees and annual reporting requirements apply. Act 60 has attracted crypto investors, fund managers, and remote business owners. It is complex and worth professional tax advice before relocating. For cost context, see our Puerto Rico cost of living page.