Act 60: Puerto Rico Tax Incentives

Puerto Rico's unique structure makes it a part of the US system but gives it autonomy over its own financial affairs. This allows it to grant unique incentives for investors.

All acts and incentives were combined into one act, Act 60, in July 2019. Act 60 has a number of chapters of incentives covering various aspects of the  economy, as well as sections on tax credits.

This is not intended as legal or tax advice. We are not accountants or lawyers. We do our best to give you enough information to get started and recommend you check everything with licensed professionals. If you are aware of any errors on the site, please let us know.


Act 60, the Puerto Rico Incentive Code (officially Law 60 of July 1st 2019; or Código de Incentivos de Puerto Rico” [Ley 60-2019] in the original Spanish) is the unified incentive framework for Puerto Rico. Signed into law in 2019, it collects, amends, or replaces over 76 incentives, incentives and programs aimed at increasing the economic prosperity of the island.

What You Need to Know

The code is split into 11 chapters, each of which maps to a group of incentives from previous acts and programs.

Act 60 is administered by DDEC, the Department of Economic Development and Commerce. (DDEC is the Spanish acronym).

DDEC grants decrees to applicants for incentives, which have terms of 15 years with optional 15-year extensions. So as the government continues to refine the incentives, your decree, once granted, does not change.

“Puerto Rico has a long history and track record of providing incentives to stimulate investment and job creation in Puerto Rico. The use of various economic incentives has been a central part of the various economic development strategies that the island has been implementing over the past decades.”—Act 60

The stated purposes of Act 60 are to consolidate incentives into one document and give the government better oversight, including increasing measurement of ROI, to improve outcomes.

Incentives are not meant to be "rewards" but are intended to stimulate the Puerto Rico economy, which has been in decline for "eleven out of the past twelve years."

A study published by DDEC shows that incentives have been largely successful by generating 36,000 jobs, $169 million in impact to the Puerto Rico treasury, and over a trillion dollars of investment on the island, including $1.3 billion in real estate purchases by new residents.

How Act 60 Relates to Previous Acts

Many on the island still call incentives, broadly, Act 20/22, two laws enacted in 2012 for individual investors and export service and products. These laws have been extremely visible, and many local residents will ask if you came here for "20/22."

Act 60 synthesizes dozens of acts going all the way back to the end of WWII in 1945.

In the sections on this page, we go through each chapter in detail. If you're looking for previous acts they map like this, although some have changed more than others:

  1. Introduction
  2. Incentives for Individuals (Act 22, Act 14) 
  3. Incentives for the Export of Goods and Services (Act 20)
  4. Incentives for Financial and Insurance Services (Act 273, Act 185)
  5. Incentives for the Visitor Economy (Act 74)
  6. Incentives for Manufacturing and R&D (Act 73)
  7. Incentives for Infrastructure (Act 83)
  8. Incentives for Agriculture (Act 225)
  9. Incentives for Creative Industries (Act 27)
  10. Incentives for Entrepreneurship (Act 135)
  11. Other Incentives (Act 135, Act 126)

Key Changes

Act 60 attempts to standardize wherever possible.

  • Standardizes tax rates
  • Establishes additional benefits for small and medium enterprises (SMEs)
  • Establishes additional benefits for the island of Vieques and Culebra
  • Engages the correct government agencies as appropriate
  • Adds blockchain technology to the list of exemptions from capital gains
  • Establishes DDEC as the sole issuer of decrees, tax credits, and oversight
  • Standardizes all decrees to 15-year terms with a possible 15-year extension
  • Opens investment accounts for all kindergarten children in public schools
  • Establishes a program to repay student loans for medical professionals who stay in Puerto Rico after completing their studies
  • Creates the Qualified Promoter and the Certified Professional programs


The preamble also outlines the Act's guiding principles as follows:

  1. Maximize transparency and fiscal responsibility
  2. Minimize government risk
  3. Base public policy on facts
  4. Avoid incentivizing things that would happen anyway
  5. Restore sustainable economic growth
  6. Measure ROI
  7. Ensure fulfillment of the commitments

All other changes will be reviewed in their respective chapters.

Download the Act

Act 60 English
Act 60 Spanish

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