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Puerto Rico Act 60 Tax Benefit Estimator (2026-2030)

Individual Investors Chapter  •  Export Services Chapter  •  Federal vs. PR Tax Comparison
Act 60 of Puerto Rico (2019) Act 38-2026 (enacted Mar 10, 2026) IRC §933 IRC §937 Treas. Reg. §1.937-1 ⚠ Dec 31, 2026 Filing Deadline
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Act 38-2026 filing deadline: December 31, 2026. Individual Resident Investor applications received by December 31, 2026 at 11:59 pm (portal filing-fee timestamp) are treated as requesting the 0% rate on post-residency interest, dividends, and capital gains, with the decree expiring December 31, 2035 (DDEC Informative Bulletin 2026-004; Code §§2022.01(a), 2022.02(b)). Applications received on or after January 1, 2027 receive a 4% rate on that income through December 31, 2055 (Code §§2022.01(b), 2022.02(d)), with a 6-year prior-residency lookback and a Property Registry requirement.
Last verified: October 29, 2026. Tax years 2026-2030. 2026 federal figures are IRS-published (Rev. Proc. 2025-32). Figures for 2027-2030 marked Projected - estimate, not IRS-published are projections using the inflation assumption you set below.
1

Tax Year & Filing Assumptions

Drives the federal brackets, standard deduction, and capital gain thresholds used in the comparison. Act 60 rates are statutory and do not vary by tax year within 2026-2030.
Enter household amounts below if married filing jointly. Standard deduction assumed; itemized deductions, credits, and above-the-line adjustments are not modeled.
Used only for 2027-2030 federal indexing. Default 2.5%. IRC §1(f)(3), §1(j)(3) index to chained CPI-U.
2

Eligibility Assessment

Bona fide residency requires the presence test, the tax home test, and the closer connection test. 183 days is one of five alternative presence tests. IRC §937(a); Treas. Reg. §1.937-1(c)(1).
The application filing date, not the approval date, selects the regime. Code §§2022.01, 2022.02 as amended by Act 38-2026.
Restricted period: for applications received by December 31, 2026, January 17, 2006 through January 17, 2012; for applications received after December 31, 2026, the 6 years before relocating. Code §1020.02(a)(4).
Treas. Reg. §1.937-1(d); IRC §911(d)(3) principles.
Treas. Reg. §1.937-1(e); IRC §7701(b)(3)(B)(ii) principles.
Code §6020.10(c).
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Annual Income Profile (Selected Tax Year)

Enter only income recognized after your decree's commencement date (Code §6020.02(a)) and after you became a bona fide PR resident. All amounts in U.S. dollars for the year selected above.
Interest & Dividends (Individual Resident Investor - Code §2022.01)
PR Act 60 rate applies to income from all sources, but the IRS still taxes non-PR-source interest. IRC §933(1); Treas. Reg. §1.937-2(c), (i).
Excluded from federal gross income for a bona fide PR resident. IRC §933(1); Treas. Reg. §1.937-2(i).
Assumed qualified dividends (0/15/20% federal, IRC §1(h)(11)). Enter non-qualified dividends under interest.
Dividends from a PR corporation meeting the 80% / 50% tests of Treas. Reg. §1.937-2(g)(1)(ii) (or the possessions-source ratio under (g)(1)(i)).
Capital Gains (Code §2022.02)
Appreciation after you became a PR resident (e.g., value on the first day of residency to sale). Treated as PR-source for federal purposes when sold by a bona fide PR resident. Reg. §1.937-2(b), (f)(1)(vi). Excludes gain on U.S. real property.
Appreciation accrued before you became a PR resident on securities and similar assets. The sourcing rule covers property of a kind described in IRC §731(c)(3)(C)(i) or §954(c)(1)(B) owned before the move (Treas. Reg. §1.937-2(f)(1)(ii)).
Within 10 years the gain is U.S.-source (Reg. §1.937-2(f)(1)) and PR applies its regular Code (Act 60 §2022.02(a), (c)). After 10 years it is PR-source and PR taxes it at 5%.
Business & Earned Income
Net income of a PR business holding an Export Services decree (Code §§2031.01, 2032.01(a): 4% fixed rate; distributions exempt under §2032.01(e)).
Wages or self-employment income for services performed in the U.S. Not excluded: IRC §933(1) covers only PR-source income. Treas. Reg. §1.937-2(c).
Base-period limitation: the 4% rate applies only to growth over the 3-year average. Code §2032.01(d). Flag only; not modeled.
Comparison Baseline: Staying on the U.S. Mainland
Top marginal individual income tax rates as of January 1, 2026 (Tax Foundation compilation; verify against the state's current rate schedule). Applied as a flat rate to all baseline income - an approximation. Held constant for 2027-2030 (Projected assumption).
Washington taxes capital gains only (excise tax), so a Washington selection applies this custom rate to gains only.
Federal rule (IRC §933(1)): A bona fide Puerto Rico resident for the entire taxable year excludes Puerto Rico-source income from federal gross income, with no deduction or credit allocable to it. U.S.-source and other non-PR-source income stays taxable in the U.S. Source follows the sections 861-865 principles with "bona fide resident of Puerto Rico" substituted for "United States resident" (Treas. Reg. §1.937-2(b)). Residency requires the presence, tax home, and closer connection tests (IRC §937(a); Treas. Reg. §1.937-1(b)-(e)).
4

Rate Comparison

Without Act 60 (U.S. Mainland)
Long-term capital gains0% / 15% / 20%
Qualified dividends0% / 15% / 20%
Interest income10% to 37%
NIIT (IRC §1411)+3.8% above MAGI threshold
Business / export services10% to 37%
State tax (varies)0% to 13.3%
→
With Act 60 (PR Resident)
Post-move capital gains0% PR + 0% Fed
Dividends / interest (U.S.-source)0% PR + Fed rates
Dividends / interest (PR-source)0% PR + 0% Fed
Pre-move gains (after 10 years)5% PR + 0% Fed
Export services (PR entity)4% PR + 0% Fed
State tax on PR income0% (none)
Pre-move built-in gains: Appreciation that accrued before you became a PR resident is U.S.-source for the IRS if you were a U.S. citizen or resident (other than a PR bona fide resident) in any of the 10 years before the sale year (Treas. Reg. §1.937-2(f)(1)(i), (iii)). For Puerto Rico, the gain is taxed at 5% only if recognized 10 or more years after becoming a resident; recognized earlier, it is taxed under the regular PR Internal Revenue Code (Code §2022.02(a), (c)).
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Estimated Tax Savings Analysis

Tax Without Act 60
$0
U.S. federal + NIIT + state
Tax With Act 60
$0
Federal on non-PR-source income + PR Act 60 tax
Estimated Annual Savings
$0
Before compliance costs

Detailed Tax Comparison

Income Category Amount Tax Without Act 60 Tax With Act 60 Annual Savings
Total $0 $0 $0 $0
Federal tax by category is allocated by stacking: ordinary income first (earned, export services, interest), then dividends, then capital gains, each category's tax being the increase in total federal tax when it is added. State tax and PR tax are the category amount times the applicable rate.

Annual Compliance Costs (Individual Resident Investor Decree)

Annual Charitable Contribution
$10,000
Minimum annual contribution to qualifying Puerto Rico nonprofits, of which at least $5,000 goes to listed child-poverty nonprofits and $2,500 to the Fondo Especial para la Igualdad Social (Code §6020.10(b); DDEC Circular Letter 2026-001). §2023.01(c) states the contribution begins with the decree's second tax year; confirm timing with counsel.
Annual Report Charge
$5,000
Annual charge payable with the annual report: $300 to a DDEC special fund and $4,700 to the General Fund. Code §6020.10(d).
Total Annual Compliance Cost
$15,000
Statutory minimum. Excludes CPA, attorney, relocation, and any separate Export Services decree charges (not modeled).
Net Annual Benefit (After Costs)
$0
Enter income above to calculate.
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One-Time Costs: Application and acceptance fees are set by DDEC regulation and are not stated in the Code; this tool does not assert an amount. Confirm the current schedule with the DDEC Office of Incentives (incentives.ddec.pr.gov). You must also buy a principal residence in Puerto Rico within 2 years after the decree, from an unrelated seller (Code §6020.10(c)); no minimum price is stated in that section.

Step-by-Step Math

Assumptions & sources (values for the selected tax year)
Sources fetched October 29, 2026: Puerto Rico Incentives Code (Act 60-2019, as amended through Act 38-2026; consolidated text revised July 16, 2026), bvirtualogp.pr.gov; Act 38-2026 (P. de la C. 505), bvirtualogp.pr.gov; DDEC Informative Bulletin 2026-004 (April 24, 2026) and Circular Letter DDEC 2026-001 (January 12, 2026), docs.pr.gov; IRC §§1, 63, 933, 937, 1411 (law.cornell.edu); Treas. Reg. §§1.937-1, 1.937-2 (law.cornell.edu); Rev. Proc. 2025-32 (irs.gov); IRS LB&I active campaigns page, "Puerto Rico Act 22, Individual Investors Act" (irs.gov); Instructions for Form 8898 (irs.gov); PwC Worldwide Tax Summaries, Puerto Rico (capital gains rate and foreign tax credit - secondary source, verify); Tax Foundation, State Individual Income Tax Rates and Brackets 2026.
Projected figures are estimates. Federal amounts for 2027-2030 are projections, not IRS-published figures, and will differ from the amounts the IRS actually publishes. Act 60 outcomes depend on facts, decree terms, and DDEC and IRS determinations that this tool cannot see. Not tax or legal advice.
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