Act 60 in 2026: What’s Changing and What You Need to Know
Act 60 in 2026: What’s Changing and What You Need to Know
For years, Puerto Rico’s Act 60 has attracted a wave of global investors, crypto entrepreneurs, hedge fund managers, and tech founders seeking one thing: legal tax relief. Offering 0% capital gains and 4% corporate tax, the incentives have been a game-changer for wealth preservation.
But in 2026, things are evolving.
Whether you’re already a decree holder or planning your move, here’s a full breakdown of the latest changes, how they affect you, and what steps you must take to stay compliant and protected under the new rules.
1. Overview: What Is Act 60?
Act 60 (formerly Acts 20 & 22) offers two main benefits:
Export Services Incentive (4% Corporate Tax): For individuals offering services from Puerto Rico to clients outside the island.
Individual Investors Incentive (0% Capital Gains): For new residents who relocate and invest in Puerto Rico after establishing tax residency.
To qualify, you must become a bona fide resident, purchase a primary residence, make annual charitable donations, and file specific compliance reports.
2. What’s Changing in 2026
Puerto Rico’s legislature has announced a series of adjustments aimed at tightening oversight and ensuring compliance. Here’s what you need to know:
a. Increased Scrutiny on Residency Requirements
Expect stricter audits and on-island presence verification. The 183-day rule still applies, but now tax authorities may request:
Flight records
Utility bills
Proof of social and community ties (school enrollment, memberships, etc.)
b. Minimum Purchase Requirements for Primary Residence
Act 60 decree holders will now be required to purchase a qualifying residence within 2 years of decree approval, not 3. Failure to do so could result in loss of benefits.
c. Mandatory Yearly Compliance Certifications
In 2026, the new Act 60 compliance portal will require enhanced annual reporting, including:
Certified CPA letters
Proof of residency documentation
Breakdown of income sources and Act 60-eligible activities
Failure to file will lead to automatic revocation of your decree.
d. Increased Donation Requirement
Annual charitable donations have increased from $10,000 to $15,000, with at least $10,000 going to Puerto Rico-based nonprofits vetted and approved under new transparency guidelines.
e. Additional Reporting for Crypto & Digital Assets
Crypto traders must now declare wallet addresses, transaction histories, and asset holdings to ensure capital gains are derived post-residency. Expect stricter KYC compliance.
3. How These Changes Affect You
Whether you’re a:
Crypto investor
E-commerce entrepreneur
Consultant exporting services
High-net-worth retiree
These updates require precise planning. Failing to follow residency and donation guidelines could result in hefty back taxes.
4. How to Stay Compliant in 2026
Work with a local CPA + Act 60 lawyer team
Keep updated proof of presence (flight logs, leases, bills)
Reconfirm your primary residence status
File early and accurately through the new portal
Make charitable contributions before the December deadline
At WoodsLux, we also recommend documenting your lifestyle—social memberships, event participation, and property use—to support your bona fide residency case.
5. Why Puerto Rico Still Dominates as a Tax Haven
Despite stricter regulations, Act 60 remains the most powerful U.S.-linked tax incentive available.
Compared to Dubai, Panama, or other havens, Puerto Rico offers:
No need to renounce U.S. citizenship
U.S. legal system and dollar
Caribbean lifestyle with direct U.S. access
Luxury coastal living in places like Dorado and Condado
For those who qualify and comply, 2026 offers even more clarity and structure—making this the best time to relocate.
Final Thoughts
Act 60 is maturing.
As the program grows in popularity, it’s only natural for rules to evolve and for enforcement to become more detailed. But for those who plan smart, document well, and stay on top of changes, Puerto Rico remains the ultimate home base for tax-advantaged wealth growth.
And we’re here to guide you.
📧 luism@woodslux.com
📱 +1 (939) 599-2504