Puerto Rico Extends Act 60 Tax Benefits Through 2055
Puerto Rico has extended its Resident Individual Investor program through 2055, but will introduce a 4% tax on interest and dividends for applications submitted after December 31, 2026. Current and near-term applicants can still lock in the 0% tax rate until 2036, provided they meet the residency requirements.
Puerto Rico Extends Act 60 Tax Benefits Through 2055
Puerto Rico is significantly extending its appeal for high-net-worth investors and remote workers looking for long-term tax stability. Under the recently signed Act 38-2026, the Individual Resident Investor (IRI) program now offers benefits through December 31, 2055. While the program previously had a 2035 expiration date, this extension provides three decades of predictability for those willing to make the island their bona fide home.
The extension comes with a notable shift in the tax rate for future applicants. If you submit your decree application by December 31, 2026, you can lock in the 0% tax rate on interest, dividends, and post-residency capital gains through 2035. However, applications submitted on or after January 1, 2027, will be subject to a 4% preferential income tax rate on that passive income through the new 2055 deadline.
This change primarily impacts expats, digital nomads, and investors seeking to minimize tax burdens on Puerto Rico-sourced income. To qualify, you must become a bona fide resident, which generally requires spending at least 183 days per year on the island and proving you have no closer connection to the U.S. mainland. Current decree holders can maintain their existing terms or choose to modify their agreements to opt into the 2055 extension at the 4% rate.
If you are considering the move, keep these requirements in mind:
- Obtain a tax exemption decree through the Department of Economic Development and Commerce (DDEC).
- Purchase a principal residence on the island within the required timeframe.
- Make a $10,000 annual charitable donation to local non-profits.
- File annual compliance reports to maintain your status.
Because the tax regime is determined by your application date rather than when you move, those eyeing the 0% rate should prioritize their nomad news research and filings before the end of 2026.
Read our full Puerto Rico guide for the complete picture.