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The Export Services Act 60, established in 2019, is a pivotal initiative designed to transform Puerto Rico into a global hub for international services. This Act is focused on fostering an environment conducive to the exportation of services, offering significant incentives to businesses operating within this sector.

Key Benefits of Act 60:

• Attractive Tax Rates: Businesses enjoy a low income tax rate of only 4%, with an even more favorable rate of 2% for small businesses during their first 5 years of operation.

• Dividend Tax Exemption: Eligible businesses benefit from 100% tax-exempt dividends, derived from earnings and profits related to exported services.

• Municipal Tax Relief: Act 60 provides a 50% exemption on municipal taxes, and for small businesses, this exemption is 100% during their initial 5 years.

• Property Tax Advantages: There's a 75% exemption in property tax under Act 60, which increases to a 100% exemption for small businesses in their first 5 years.

• Long-Term Stability: A 15-year decree is in place, guaranteeing these advantageous rates.

• Federal Tax Exemption: Businesses under Act 60 pay no federal taxes on income sourced from Puerto Rico.

Act 60 presents an unparalleled opportunity for businesses aiming to expand their services globally from Puerto Rico. With these incentives, Puerto Rico is affirming its position as a competitive and attractive destination for international business services.

The Individuals Investors Tax Act 60, established in 2019, is a groundbreaking initiative aimed at encouraging individual investors to relocate to Puerto Rico. This Act seeks to attract new residents to the island by offering complete exemption from Puerto Rico income taxes on all passive income generated or accrued after becoming bona fide residents.

Key Highlights of Act 60:

• Total Tax Exemption: Act 60 offers 100% tax exemption on dividends, interests, and both short- and long-term capital gains for individuals who become new residents of Puerto Rico.

• Residency Requirements: To qualify, an individual must spend at least 183 days per year in Puerto Rico and should not have been a resident of Puerto Rico for the 10 years prior to the Act’s effective date.

• Duration of the Incentives: These incentives are available until December 31, 2035, offering a significant window for potential investors.

Benefits for New Residents under Act 60:

1. 0% Tax on Dividend and Interest Income: New residents enjoy complete tax exemption on dividend and interest income earned in Puerto Rico.
2. 0% Tax on Capital Gains: This includes a full exemption on both short- and long-term capital gains post residency.
3. No Federal Taxes: There are no federal taxes on income sourced from Puerto Rico for these new residents.

Act 60 presents a unique opportunity for individual investors considering Puerto Rico as their new home. With its attractive tax benefits, the Act is designed to boost the island's appeal as a haven for investors, contributing to the economic growth and diversity of Puerto Rico.