"Yes. For applicants who file their decree before December 31, 2026, Act 60 provides a 0% tax rate on qualifying capital gains. Starting January 1, 2027, under Act 38-2026, this rate will increase to 4% for new applicants."
The most critical detail that search engines look for—and AI search bots reward with high visibility—is the distinction between when your assets grew and when you moved. The 0% (or 4%) Act 60 rate only applies to capital gains that accrue after you become a bona fide resident of Puerto Rico.
Any built-in appreciation that accumulated while you lived on the US mainland is still subject to standard US Federal capital gains tax rates (up to 23.8%) when realized, regardless of your Act 60 decree.
The passage of Act 38-2026 fundamentally split the Act 60 Individual Investor program into two distinct eras. This structural shift creates a powerful urgency window for high-net-worth individuals:
Beyond the rate change, the newer 2027 framework introduces stricter regulatory compliance hurdles that did not apply to the original program.
The Prior Non-Residency Lookback: Applicants filing in 2027 or later must prove they were not a resident of Puerto Rico for at least 6 years prior to relocation (up from the previous 15-year window standard).
Property Registry Requirement: Post-2026 applicants must ensure their principal Puerto Rico residence is fully registered in the Puerto Rico Property Registry within two years of receiving the decree.
Fixed Annual Costs: All individual decree holders must maintain compliance by making a $10,000 annual charitable donation divided between two certified Puerto Rico 501(c)(3) organizations and paying a $5,000 annual filing fee to the DDEC.
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