Puerto Rico Act 60 Tax Incentives | US Territory with 0-4% Tax

Act 60 - Chapter 2 (Export Services): 4% corporate tax on export services (services provided from PR to clients outside PR). Includes consulting, software development, R&D, financial services, legal, accounting, engineering, management services. Must become PR resident, establish PR company, hire PR employees.
‍
Act 60 - Chapter 3 (Individual Investors): 0% tax on capital gains accrued AFTER becoming PR resident (pre-PR gains still subject to US tax). Includes stocks, crypto, real estate capital gains. Must become bona fide PR resident (183+ days, closer connections to PR than mainland).
‍
0% tax on PR-sourced dividends, interest
‍
Federal income tax still applies (US citizens pay federal tax regardless of residence, but PR-sourced income exempt from federal in many cases)
‍
Requirements: move to PR before December 31 of year, file PR tax return, buy PR property (or rent), spend 183+ days in PR, demonstrate closer connections to PR

Bona fide residency: Must physically live in PR 183+ days/year and have closer connections to PR than any other place (buy/rent property, obtain PR driver's license, register to vote, move family, join community)
‍
US citizens: Automatically have right to live in PR (domestic move, no visa required)
‍
Non-US citizens: Must have US work authorization or immigrant visa to reside in PR legally (PR is US territory, same immigration rules as mainland)
‍
Puerto Ricans are US citizens (can move freely to/from mainland, vote in presidential primaries but not general election unless resident in mainland)

Export services businesses (4% tax): software development, consulting, marketing agencies, financial advisory, crypto/blockchain services, R&D, legal/accounting for offshore clients
‍
Individual investors (0% capital gains): traders, crypto investors, venture capitalists (capital gains from trades/investments made while PR resident)
‍
Real estate: developing market (hurricane recovery ongoing, opportunities for development, tourism properties)
‍
US legal system, banking, payment infrastructure (no separate banking like offshore jurisdictions)
‍
Access to mainland US market without tariffs/customs

Must genuinely relocate: IRS scrutinizes Act 60 claims (must actually live in PR, not just claim residence for tax purposes). 183+ days, closer connections evidence required.
‍
Federal tax still applies: US citizens pay federal income tax on worldwide income (though PR-sourced income often exempt from federal). Social Security/Medicare taxes apply to employment income.
‍
Pre-PR capital gains taxed: Only gains accrued AFTER becoming PR resident qualify for 0% (gains before move still federally taxed). "Exit tax" planning needed if substantial appreciated assets.
‍
Hurricane risk: Caribbean location, hurricane season (insurance costs high, infrastructure damage periodic)
‍
Infrastructure challenges: Power grid unreliable (frequent outages, solar/backup generators common), roads/transport variable quality
‍
Language: Spanish primary language (English widely spoken in San Juan, business community; less common in rural areas)
‍
Tropical lifestyle: Beautiful beaches, warm climate year-round, Caribbean culture
‍
Crime: Varies by area (San Juan, tourist zones generally safe; some neighborhoods high crime)
‍
Best for: US citizens traders/investors (crypto especially), service exporters targeting mainland market, individuals with substantial capital gains seeking 0% tax while maintaining US legal/banking system