🇵🇷 Puerto Rico
US territory offering major tax incentives for new residents — no visa needed for US citizens, but Act 60 rules just changed
Visa Options
- US Citizen Relocation (N/A — no visa needed) — US citizens and permanent residents can relocate freely; must become a bona fide PR resident (183+ days/yr) for tax benefits
- Act 60 Individual Resident Investor Decree (Decree valid through 2055 (grandfathered terms through 2035/2036 if applied by Dec 31, 2026)) — Become a bona fide resident, buy PR real estate as primary residence within 2 yrs, donate $10,000/yr to a qualifying PR nonprofit, was not a PR resident in the prior 6 years
- Act 60 Export Services Business Decree (15-year renewable decree) — Establish a qualifying export-services business in Puerto Rico (4% corporate tax rate)
- Non-US-citizen route (standard US immigration) (Varies) — Puerto Rico follows standard US immigration law — a US visa/green card is required for non-citizens
Tax Overview
- Federal income tax: Not owed on PR-source income for bona fide residents (unique to PR under IRS rules)
- Act 60 dividends/interest (applied by Dec 31, 2026): 0% PR tax through Jan 1, 2036 (grandfathered)
- Act 60 dividends/interest (applying from 2027): New 4% preferential rate replaces the old 0% for new applicants
- Act 60 capital gains (post-relocation): 0% if recognized before Jan 1, 2036 (grandfathered); 4% for post-2026 applicants
- Standard PR individual tax (non-Act 60): 0% – 33% progressive, similar bracket structure to pre-TCJA US federal rates
- IVU (sales & use tax): 10.5% state + up to 1% municipal (11.5% typical combined)
Cost of Living
- Comfortable living (single, typical): $1,600 – $2,500/mo
- 1BR Apartment (San Juan — Condado/Miramar): $1,100 – $1,800/mo
- 1BR Apartment (outside San Juan metro): $650 – $1,000/mo
- Groceries: $300 – $450/mo
- Utilities (incl. AC): $150 – $280/mo (electricity costs are high)
- Dining out: $12 – $25/meal
- Car (recommended — limited public transit): $300 – $500/mo incl. insurance/gas
- Private health insurance: $150 – $350/mo
Relocation Checklist
- Confirm US citizenship/permanent residency status (no visa needed for citizens)
- Consult a PR-specialist tax attorney/CPA — Act 60 rules changed materially for 2027+ applicants
- Establish bona fide residency (183+ days/yr, closer connection to PR, no permanent US tax home)
- If pursuing Act 60: apply for the Individual Resident Investor decree before Dec 31, 2026 to grandfather current terms
- Purchase PR real estate as a primary residence within the required window (if on Act 60)
- Make the required annual charitable donation ($10,000/yr split across two PR nonprofits) if on Act 60
- Register a PR address, driver's license, and voter/tax records to document residency
- File PR tax returns (Hacienda) and required federal forms (e.g., Form 8898) even without federal PR-source tax owed