Act 60

How Act 60 Can Benefit American Investors in Puerto Rico

Puerto Rico is a US territory that offers many advantages for American investors who want to establish or expand their businesses in the island. One of the main attractions is Act 60, the code of tax incentives that consolidates and simplifies dozens of previous laws that granted tax benefits to various industries and activities.

Act 60 was enacted in 2019 to promote the economic development of Puerto Rico and to attract foreign and local investment. It provides a comprehensive and standardized framework for applying, granting, and monitoring tax incentives for different sectors, such as manufacturing, tourism, agriculture, export services, individual investors, film industry, green energy, and more.

Some of the benefits that Act 60 offers to American investors are:

– A 4% corporate income tax rate for eligible export services businesses, such as consulting, marketing, software development, research and development, and others.
– A 100% tax exemption on dividends and profit distributions from eligible export services businesses.
– A 50% tax credit on eligible research and development expenses.
– A 25% tax credit on eligible film production expenses.
– A 100% tax exemption on income derived from eligible green energy projects.
– A 100% tax exemption on interest income from deposits in Puerto Rico financial institutions.
– A 100% tax exemption on capital gains from the sale of securities or real property acquired after becoming a bona fide resident of Puerto Rico.
– A 100% tax exemption on passive income from sources outside of Puerto Rico for bona fide residents.

To enjoy these benefits, American investors must apply for a tax grant under Act 60 and comply with certain requirements, such as creating jobs, making investments, contributing to local charities, filing annual reports, and obtaining a tax compliance certificate.

Act 60 is not only a great opportunity for American investors to reduce their tax burden and increase their profits, but also a way to contribute to the social and economic well-being of Puerto Rico. By investing in the island, they can help create jobs, stimulate innovation, diversify the economy, and support local communities.

If you are interested in learning more about Law 60 and how it can benefit your business, you can click here or contact our professional advisors who can guide you through the process. Puerto Rico is waiting for you!


Leave a Comment

Scroll to Top