Business owners relocating to Puerto Rico can tap into major tax incentives. Many people assume these benefits are only for corporate giants or big tech companies. In reality, the island’s creative sector, including artists, designers, and filmmakers, has become a growing force in the economy, contributing almost $4 billion annually. This article breaks down exactly how creatives can qualify under Act 60 and access the full range of benefits Puerto Rico offers.

Export Services & Eligibility Basics

To qualify for tax incentives under Act 60, there are a few key requirements you need to meet:

With these requirements in place, let’s explore how Act 60 applies to creatives under Chapters 3 and 9 of Puerto Rico’s Incentives Code.

Chapter 3: Creative Industries and Export Services

Chapter 3 of Act 60 covers a wide range of creative and professional services, including:

Other eligible activities under Chapter 3 include education and training services and the development of computer programs. If your creative work involves creating audio or visual content in these areas, you may also qualify.

Key tax benefits under Chapter 3 include:

Chapter 9: Film, Media, and Large-Scale Creative Productions

Chapter 9 of the Act 60 Incentives Code focuses on creative projects where the production or post-production work takes place in Puerto Rico, and the final product is distributed outside the island.

Eligible projects include:

To qualify, there are minimum spending requirements:

Projects cannot have propaganda purposes or be created primarily to promote a specific product or service. This ensures the incentives are used for genuine creative productions rather than marketing campaigns or political messaging.

If you are an artist, designer, or other creative professional registered as a corporate entity in Puerto Rico, such as an LLC, and are directly hired by a film, documentary, or television project covered under Chapter 9, you may be able to apply for those incentives through the production itself.

In terms of tax benefits, companies can get up to a 40% tax credit on production costs in Puerto Rico (including local hires, equipment, and services).

Corporate vs. Individual Incentives

When applying for Act 60, there is an important distinction between corporate and individual incentives.

Corporate

For a corporate setup, you must register as a legal entity in Puerto Rico.

Your business will be subject to a 4% corporate tax rate on eligible export services and can distribute dividends to owners tax-free within Puerto Rico. This dividend exemption has no built-in expiration and is separate from the individual investor decree under Chapter 2, where a new 4% rate applies to capital gains, dividends, and interest for applications filed on or after January 1, 2027.

Individuals

For individual creatives, such as solo freelancers without an LLC, you will need to register in Puerto Rico as a legal entity to take advantage of tax incentives on your income.

Similar to a corporate setup, individuals applying as investors may access tax exemptions on dividends and capital gains, but they don’t benefit from the same corporate tax structure on work-related income unless they set up a legal entity and qualify under Act 60.

Next Steps for Creatives

If you run a company as an artist, designer, or filmmaker and are thinking about relocating to Puerto Rico, learning how Chapters 3 and 9 work can help you understand eligible services, minimum spend requirements, and business setup. Luckily, expert guidance can make the process easier and prevent costly delays. Schedule a call with our team to speak with an Act 60 specialist who can guide you through the first steps toward moving to the island.