03-01-2026

Puerto Rico has been a beacon for global investment, thanks to Act 60, a powerful tool that has attracted capital through highly competitive tax incentives. However, the landscape is about to change drastically. The announced reforms to this law, which, if approved, will take effect on January 1, 2026, are not just adjustments; they are a turning point that demands a sharper and more forward-thinking strategy from every investor and entrepreneur.

We know that current incentives, such as 0% on capital gains, interest, and dividends, are still available, but there is a deadline: December 31, 2025. This is the crucial moment to fully understand these reforms and, most importantly, adapt your financial plan with the speed and precision the market demands. The Countdown to 0% has Begun For investors still looking to benefit from current tax incentives, the window of opportunity is closing soon. Submitting your application before December 31, 2025, is not just a suggestion; it’s the last chance to access the original incentives of Law 60 and secure 0% before the new regulations take effect. Those who hesitate could miss out on a tax advantage that has defined strategic investment on the island for the past several years. The New Era of 4%: Redefining the Performance Strategy Starting January 1, 2026, a new tax reality will apply to new applicants: they will be subject to a flat rate of 4% on passive income (capital gains, dividends, interest). While 4% undoubtedly remains a highly competitive rate on the international stage, its implementation requires a meticulous review and adjustment of performance projections and tax implications. As a business owner, we urge you to: Thoroughly evaluate how this new rate will affect expected returns and the viability of current and future projects. Strategically redesign your investment structures and the corporate vehicles you use. Are they optimized for this new reality?

Remember: the 4% rate is still attractive, but it requires much more precise and proactive financial planning.

Although the new tax decree with a fixed rate of 4% on capital gains applies only to new residents who have not lived in Puerto Rico in the last 6 years, there are significant benefits for local residents under other chapters of Law 60 that are strengthened by this reform.

Opportunities for local businesses under other chapters

Puerto Ricans can still benefit from the following decrees under the reform:

✅ Chapter 3 – Exporting Services

• 4% fixed tax rate on net income generated outside of Puerto Rico.
• 100% exemption on distributed dividends.
• Applies to consultants, developers, advisors, creative professionals, and more.

✅ Chapter 5 – Tourism

• Up to 90% exemption on income and property taxes.
• Incentives for the development of hotels, medical tourism, ecotourism, etc.