Act 60 Decree Comparison: Pre-2020 vs. 2020–2025 vs. Post-2026
Requirements differ by when your decree was granted. Know which rules apply to you.
Content current as of April 2026.
Why Decree Grant Date Matters
Act 60 is not a monolithic framework. The requirements, tax rates, charitable obligations, and compliance mechanisms differ significantly depending on when your decree was granted. The firm identifies three distinct eras:
Comparison Table
| Requirement | Pre-2020 (Act 22 Legacy) | 2020–2025 (Act 60 + Act 52-2022) | Post-Dec 31, 2026 (Act 38-2026) |
|---|---|---|---|
| Capital Gains Rate | 0% | 0% | 4% |
| Annual Charitable Donation | $5,000 | $10,000 ($5K CECFL + $5K qualifying nonprofits) | $10,000 ($5K CECFL + $5K qualifying nonprofits) |
| Property Purchase | Within 2 years of decree | Within 2 years of decree | Within 2 years; must register in PR Property Registry |
| Employment Requirement | None | None | 1 FTE if revenue >$3M |
| Biennial Compliance Certificate | Required (Act 52-2022 applies retroactively) | Required under Act 52-2022 | Required under Act 52-2022 |
| CPA/Compliance Professional | Required for AUP certification | Required for AUP certification | Required for AUP certification |
| Prior Non-Residency | Not required | Not required | 6 years of non-PR residency required |
| Decree Duration | 15 years (renewable) | 15 years (renewable, program through 2035) | 15 years (renewable, program through 2055) |
| DDEC Circular Letters | Applicable for eligible activities and rate definitions | Applicable; governs granular implementation | Applicable; new Circular Letters expected |
Key Takeaways
- Existing decree holders are grandfathered under their original terms—your rate and donation obligations do not change under Act 38-2026
- Act 52-2022 compliance applies to all decree holders regardless of when the decree was granted—biennial certification is mandatory
- The federal 10-year lookback rule applies to all decree holders—pre-move capital gains are federally taxable regardless of your decree era
- DDEC Circular Letters—not the broad statutory text alone—govern the practical application of Act 60 benefits, including eligible activity definitions and administrative procedures
Note: This table reflects general requirements. Individual decree terms may vary. Consult qualified Puerto Rico tax counsel to confirm the specific terms applicable to your decree.
Not sure which rules apply to your decree?
We help decree holders of all eras understand their specific obligations and plan accordingly.
Book a Free Strategy CallThe information on this page is for general educational purposes only and does not constitute legal or tax advice. Tax outcomes depend on individual circumstances including residency, income sourcing, decree terms, and applicable law. No attorney-client relationship is formed by viewing this content. For advice specific to your situation, schedule a consultation.