On June 25, 2025, the Puerto Rico Senate passed a bill to extend and revise Act 60 of 2019, marking a significant step toward reshaping the island’s investment landscape. The House of Representatives had already approved the bill on April 28. The legislation now awaits Governor Jenniffer González-Colón’s signature before it becomes law.

Originally set to expire on December 31, 2035, Act 60 offers tax incentives to attract high-net-worth individuals and investors to Puerto Rico. The new bill would extend the program’s benefits through December 31, 2055—providing 20 additional years of certainty for future investors. Existing decree holders under Law 22-2012 or previous versions of Law 60-2019 will retain their current benefits. Their rights and obligations are protected and remain unaffected by the new legislation.

Starting in 2026, new applicants would be subject to a 4% fixed tax on capital gains, as well as Puerto Rico-sourced interest and dividends. It’s important to note that Act 60 does not eliminate all tax obligations—investors may still be subject to ordinary income taxes, property taxes, and other local levies. The preferential rate applies specifically to certain types of passive income, not to overall income.

To qualify as a Resident Investor Individual under the new rules, an applicant must become a bona fide resident of Puerto Rico no later than December 31, 2055 and demonstrate at least six years of non-residency on the island prior to relocating. In addition, current decree holders will have the option to transition into the new model once their existing grants expire after 2035.

At PRelocate, we’re closely monitoring these developments to help our clients make informed decisions. If you’re considering a move to Puerto Rico under Act 60, now is the time to explore your options. Reach out to our team for personalized guidance on how these legislative updates could affect your relocation plans.