Puerto Rico has extended the Act 60 investor program to 2055 and introduced new rules for future applicants. Learn what the changes mean for investors relocating to the island.

The original proposal announced in 2025 has now been approved and enacted into law. The legislation introduces several changes to the Resident Individual Investor program under Act 60. The three biggest takeaways are:

• The program has been extended to 2055.
• A new 4% tax rate has been introduced for future investors.
• Existing decree holders remain protected under their current terms.

Below is a breakdown of the key updates and what they mean for individuals considering relocating to Puerto Rico.

Act 60 Investor Program Extended Through 2055

Some investors were concerned about the Act 60 decree program expiring in 2035. The new legislation extends the program until 2055, removing that uncertainty for individuals considering long-term relocation to Puerto Rico.

Puerto Rico lawmakers have emphasized that the island’s tax incentive programs have had a meaningful impact on economic activity over the past decade. According to government reports, the investor and export services programs have:

• Created over 75,000 direct and indirect jobs
• Generated approximately $650 million in tax revenue
• Supported millions in annual donations to nonprofit organizations

Given these results, extending the program allows Puerto Rico to continue attracting investment while supporting long-term economic development on the island.

New Rules for Future Resident Investor Applicants

For individuals applying under Act 60 beginning January 1, 2027, several new rules will apply. These changes primarily affect how certain types of income are taxed for new participants in the program. The key changes include:

• A 4% tax rate on capital gains, and Puerto Rico sourced interests and dividends earned after becoming a Puerto Rico resident
• A six-year prior non-residency requirement before moving to Puerto Rico
• Continued eligibility for more favorable tax treatment if it is available under other provisions of Puerto Rico tax law

While Act 60 previously allowed certain investment income to be taxed at 0%, the newly introduced 4% rate remains highly competitive compared to many jurisdictions available to U.S. citizens.

Property Requirement for Resident Investors

Investors must establish a real presence on the island. The core requirement remains the same: Resident Individual Investors must purchase residential property in Puerto Rico within two years of receiving their decree and use the property as their primary residence.

However, the new law clarifies how ownership and documentation must be handled. Specifically, the legislation now states that the property must be held individually, jointly with a spouse, or through a qualifying trust. In addition, the property must be registered (or pending registration) in the Puerto Rico Property Registry. The law also clarifies that the decree holder must have exclusive and complete ownership of the property.

These clarifications provide more formal guidance on compliance while reinforcing the program’s goal of encouraging long-term residency and local investment.

What the Changes Mean for Current Act 60 Decree Holders

For current decree holders, existing tax benefits remain unchanged. The law explicitly protects the rights granted under previously issued decrees, meaning investors will continue to receive the same tax treatment for the duration of their current decree.

Most current decrees extend through 2035. After a decree expires, investors may choose to renew or modify their decree, at which point the new 4% tax framework may apply depending on the terms of renewal.

For now, however, nothing changes for current participants, and their existing benefits remain fully protected under the new legislation.

Don’t Wait to Start Planning Your Move to Puerto Rico

With the passage of this new legislation, Puerto Rico has officially extended the Act 60 Resident Individual Investor program through 2055 while introducing updated requirements for future applicants, including a 4% tax rate on certain investment income.

If you are planning to apply for an Act 60 decree, working with experienced professionals can help simplify the process. Our team at Relocate Puerto Rico assists individuals in preparing and submitting the required documentation for an Act 60 decree. If you want to lock in the 0% rate, book a free call today to learn how our team can help guide you through the process with confidence.