What is Act 60? Understanding Puerto Rico’s Premier Tax Incentive Program
Act 60, enacted in 2019, consolidated Puerto Rico’s most attractive tax incentive programs—formerly known as Act 20 (Export Services) and Act 22 (Individual Investors)—into a single, streamlined tax code. This landmark legislation has transformed Puerto Rico into one of the most compelling destinations for entrepreneurs, investors, and high-net-worth individuals seeking legitimate tax optimization strategies while enjoying an exceptional quality of life.
Under Act 60, qualified decree holders can benefit from remarkable tax advantages, including a 4% corporate tax rate for export services businesses and 100% tax exemption on capital gains, dividends, and interest income for individual investors. These incentives have attracted thousands of relocators to the island, creating a vibrant community of successful professionals who now call Puerto Rico home.
However, obtaining your Act 60 decree is just the beginning. To maintain compliance and enjoy these benefits, decree holders must establish and maintain bona fide residency in Puerto Rico—and that starts with finding the right housing.
Housing Requirements for Act 60 Decree Holders
The IRS and Puerto Rico’s Department of Economic Development and Commerce (DDEC) take residency requirements seriously. To qualify as a bona fide resident of Puerto Rico, decree holders must meet several key criteria:
- Presence Test: You must be physically present in Puerto Rico for at least 183 days per year
- Tax Home Test: Your primary place of business or employment must be in Puerto Rico
- Closer Connection Test: You must demonstrate stronger ties to Puerto Rico than to any U.S. state or foreign country
Your housing situation plays a critical role in satisfying these requirements. Decree holders need a primary residence that demonstrates genuine commitment to Puerto Rico—not just a vacation rental used occasionally. The property should serve as your true home base, where you receive mail, register vehicles, and conduct daily life.
Many Act 60 clients initially arrive seeking short-term accommodations while they explore neighborhoods and search for permanent housing. Others prefer the flexibility of longer-term rentals that allow them to test different areas before purchasing property. Understanding these unique needs has become a specialty for premium rental providers in Puerto Rico.
Why Condado and San Juan Are Ideal for Act 60 Relocators
While Puerto Rico offers diverse neighborhoods across the island, Condado and the greater San Juan metropolitan area have emerged as the preferred destination for Act 60 decree holders. Here’s why:
World-Class Amenities and Infrastructure
Condado offers the sophisticated urban lifestyle that successful professionals expect. From Michelin-recognized restaurants and luxury boutiques to premium fitness facilities and beautiful beaches, everything you need is within walking distance. The neighborhood seamlessly blends Caribbean charm with metropolitan convenience.
Business-Ready Environment
San Juan provides the professional infrastructure essential for running export services businesses. High-speed internet, modern co-working spaces, proximity to Luis Muñoz Marín International Airport, and a growing community of fellow entrepreneurs create an ecosystem conducive to business success. Major banks, legal firms specializing in Act 60 compliance, and accounting professionals are all readily accessible.
Vibrant Decree Holder Community
Perhaps most importantly, Condado has become the social hub for Act 60 relocators. Networking opportunities abound at local restaurants, business events, and community gatherings. This established community provides invaluable support for newcomers navigating their transition to island life.
Quality of Life
Beyond business considerations, Condado delivers an exceptional lifestyle. Year-round tropical weather, stunning ocean views, easy access to world-class golf courses, and a rich cultural scene make daily life genuinely enjoyable. Many decree holders find that the quality of life upgrade alone justifies their relocation decision.
Compliance Tips for Maintaining Your Act 60 Benefits
Securing your decree is an achievement, but maintaining compliance requires ongoing attention. Here are essential tips for preserving your Act 60 benefits:
- Track Your Days Meticulously: Maintain detailed records of your presence in Puerto Rico. Use calendar apps, travel receipts, and credit card statements to document your location throughout the year.
- Establish Strong Local Ties: Beyond housing, integrate into the community. Join local organizations, obtain a Puerto Rico driver’s license, register to vote, and establish relationships with local service providers.
- Keep Your Tax Home in Puerto Rico: Ensure your primary business operations occur on the island. If you have mainland business interests, structure them carefully with guidance from qualified tax professionals.
- Work with Experienced Advisors: Maintain relationships with attorneys and CPAs who specialize in Act 60 compliance. The investment in professional guidance protects your substantial tax benefits.
- File All Required Reports: Submit annual reports to DDEC on time and maintain proper documentation of your decree compliance.
Your housing choice directly impacts several compliance factors. A well-located, properly documented primary residence strengthens your position during any residency audit.
KTJ Krug’s Experience Serving Act 60 Clients
At KTJ Krug, we’ve had the privilege of hosting hundreds of Act 60 decree holders throughout their Puerto Rico journey. With over 300 five-star reviews and years of experience in Condado’s luxury rental market, we understand the unique needs of relocating professionals.
Our Act 60 clients consistently appreciate several aspects of our service:
- Premium Properties: Our portfolio features beautifully appointed condos in Condado’s most desirable buildings, with ocean views, modern amenities, and the quality finishes that successful professionals expect.
- Flexible Lease Terms: Whether you need a month-to-month arrangement while searching for permanent housing or a longer-term lease that provides stability, we offer options tailored to your situation.
- Local Expertise: As long-time Condado residents and property managers, we provide insider knowledge about neighborhoods, services, and the practical aspects of island living that newcomers find invaluable.
- Seamless Experience: From arrival to departure, we handle the details that make your transition smooth—reliable Wi-Fi for remote work, fully equipped kitchens, and responsive support whenever questions arise.
Many of our Act 60 guests have become long-term clients and friends, returning to our properties year after year or referring colleagues who are beginning their own Puerto Rico journey.
Explore Available Properties for Act 60 Housing
Ready to find your Puerto Rico home base? We invite you to explore our current selection of premium Condado vacation rentals, many of which are ideal for Act 60 decree holders seeking quality accommodations during their transition or ongoing stays.
Our properties range from stylish studios perfect for solo entrepreneurs to spacious multi-bedroom condos suitable for families. Each property is carefully maintained and equipped with everything you need for comfortable, productive living in Puerto Rico.
Have questions about Act 60 housing or want personalized recommendations based on your situation? Contact us directly—we’re always happy to share our local knowledge and help you find the perfect property for your needs.
Whether you’re just beginning to explore Puerto Rico’s tax incentives or you’re an established decree holder seeking premium accommodations, KTJ Krug is here to make your Puerto Rico experience exceptional. Welcome to the island—we look forward to hosting you.