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RIVERO CONSULTING

PR Tax Incentives for Individual Investors

Act 20 (Now Act 60-2019) - Export Services

Act 22 (Now Act 60-2019) - Individuals Investors

Act 22 (Now Act 60-2019) - Individuals Investors

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 The Export Services Act 60 of 2019 or Act 60 was established and intended  to promote the exportation of services, by providing the appropriate  environment and opportunities to make Puerto Rico a center for  international services. 


 Act 60 offers a four (4)% corporate tax rate for Puerto Rico businesses  providing services for exportation, 100% tax-exempt dividends from  earnings and profits derived from the export services income of eligible  businesses, and a 50% exemption on municipal taxes. 


 

Act 60-Export Services offers:

  • 4% corporate tax rate
  • 100% tax-exempt dividends
  • 50% exemption on municipal taxes
  • 75% exemption in Property Tax
  • 15-year decree guaranteeing these rates
  • No federal taxes on Puerto Rico source income

Act 22 (Now Act 60-2019) - Individuals Investors

Act 22 (Now Act 60-2019) - Individuals Investors

Act 22 (Now Act 60-2019) - Individuals Investors

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 The Individuals Investors Tax Act 60 of 2019 or Act 60 was established to  promote the relocation of individual investors to Puerto Rico, in order  to attract new residents to the Island by providing a total exemption  from Puerto Rico income taxes on all passive income realized or accrued  after such individuals become bona fide residents. 


 The incentives under Act 60 of 2019, which will expire on December 31,  2035, include 100% tax-exemption on dividends and interests and a 100%  tax exemption on short-and long-term capital gains, after becoming  residents. To become a new bona fide resident of Puerto Rico, an  individual must have physical presence in the Island for at least 183  days of the year and must not have been a resident in Puerto Rico for  the 10 years prior to the Act’s effective date. 


 

Act 60-Individuals Investors offers:

  • 0% tax on dividend and interest income for new Puerto Rico residents
  • 0% tax on short-and-long term capital gains for new Puerto Rico residents
  • 0% federal taxes on Puerto Rico source income