Puerto Rico Act 60 Overhaul: New Two-Track System with 2026 Deadline
Key Questions
What changes were made to Puerto Rico's Act 60 in 2026?
The tax incentive was overhauled to establish a two-track system. A December 31, 2026 deadline was set to lock in the prior 0% capital gains rate, with benefits extended to 2055.
What is the deadline to secure the old Act 60 capital gains rate?
Investors must act by December 31, 2026 to qualify for the previous 0% rate. After this date, the new two-track system will apply instead.
How does the Act 60 extension to 2055 benefit investors and developers?
The extension through 2055 delivers long-term certainty for tax incentives. It is especially relevant for those targeting Puerto Rico for investment and development.
Puerto Rico's Act 60 tax incentive has been significantly overhauled in 2026, creating a two-track system with a December 31, 2026 deadline to lock in the old 0% capital gains rate. The extension to 2055 provides long-term certainty. A practical guide on establishing residency under Act 60 is now available, covering IRS tests and enforcement changes. This is critical for investors and developers targeting the island.