The Ultimate Guide to Becoming an Act 60 Individual Resident Investor in Puerto Rico
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What is an Act 60 Individual Resident Investor?
First, it is crucial to understand who is eligible. An Individual Resident Investor is an individual who was not a resident of Puerto Rico for the six-year period between January 17, 2006, and January 17, 2012. The law is designed to attract new capital and new residents to the island. If you meet this look-back requirement, you can proceed with the application.
Your 4-Point Compliance Checklist
To secure and maintain your decree, you must meet four core requirements. Think of these as the pillars that support your tax-free status.
1. Establish Bona Fide Residency
This is the absolute cornerstone of your Act 60 status. While there are multiple tests involved, the most well-known component is the presence test, which requires you to be physically present in Puerto Rico for a minimum of 183 days per year. Fulfilling this requirement is mandatory to prove that Puerto Rico is your true home and the center of your life—a lifestyle filled with stunning beaches and vibrant culture.
2. Purchase a Primary Residence
You must purchase a residential property in Puerto Rico within two years of obtaining your decree. This property must serve as your primary residence for the entire duration of the decree. This rule reinforces your commitment to establishing genuine roots on the island. Our real estate and concierge services can provide exclusive access to prime properties to meet this requirement seamlessly.
3. Make Annual Charitable Contributions
Every decree holder must make an annual donation of at least $10,000 to certified Puerto Rican non-profit organizations. The law specifies how these funds must be allocated:
- $5,000 must be given to an entity on a pre-approved government list that is focused on eradicating child poverty.
- The remaining $5,000 can be donated to any other Puerto Rican non-profit entity of your choosing that is certified under the tax code.
4. File Your Annual Report & Pay Fees
To prove your compliance, you must file an annual report with the Incentives Office. This report demonstrates that you have met all your obligations for the year. The filing is subject to an annual fee of $5,000. Failure to file this report can lead to administrative fines and jeopardize your decree. Our team handles this reporting to ensure you remain in perfect compliance.
Frequently Asked Questions (FAQ)
Here are direct answers to the most common questions about the Individual Resident Investor requirements.
- How long do I have to buy a house in Puerto Rico for Act 60?
You have two years from the date your decree is issued to purchase a primary residence in Puerto Rico. - How much do I have to donate each year for Act 60?
You are required to donate a minimum of $10,000 annually to certified non-profits, with specific rules on how the funds are allocated. - What is the "183-day rule" for Act 60?
The "183-day rule" refers to the presence test, a key component of becoming a bona fide resident, which requires you to be physically present on the island for at least 183 days each year.
Your Path to 0% Taxes Starts Here
Meeting these requirements is not just paperwork; it is the legal foundation upon which your tax-free investment future is built. While the rules are clear, navigating the process requires careful planning and execution.
Don’t risk your financial future on a misunderstanding or a missed deadline. Our team of experts ensures every step is handled correctly, from the initial application to your annual compliance.
Schedule a free consultation with our team today and let us build your secure path to a 0% tax life in paradise.