If you’re looking for a new life in a tropical paradise with a vibrant culture and a relatively low cost of living yet all the conveniences and security of the United States, Puerto Rico may just be the perfect place for you. Every year, hundreds of U.S. citizens and permanent residents make the move to Puerto Rico to take advantage of the lucrative tax incentives the island offers, such as the Act 60 Export Services or Act 60 Individual Resident Investor tax benefits, and we at PRelocate have helped countless applicants improve their lives under the Puerto Rican sun.

As of January 20, 2021, the Puerto Rican government has introduced increased fees for tax incentive applications, codified in the Incentive Code Regulation. Despite the increased fees, applying for these lucrative tax benefits is still a worthwhile investment, however, as they can result in a 4% corporate tax rate or a 0% capital gains tax rate. The extra fees are a small price to pay for a luxurious life in Puerto Rico with significant tax savings.

The fee increases are as follows:

Note that a $5 transaction fee accompanies each of these fees. For those who wish to peruse the regulation for themselves, a PDF file is available for review, but it is entirely in Spanish.

Disclaimer: Neither PRelocate, LLC, nor any of its affiliates (together “PRelocate”) are law firms, and this is not legal advice. You should use common sense and rely on your own legal counsel for a formal legal opinion on Puerto Rico’s tax incentives, maintaining bona fide residence in Puerto Rico, and any other issues related to taxes or residency in Puerto Rico. PRelocate does not assume any responsibility for the contents of, or the consequences of using, any version of any real estate or other document templates or any spreadsheets found on our website (together, the “Materials”). Before using any Materials, you should consult with legal counsel licensed to practice in the relevant jurisdiction.