Act 60 Decree Comparison: Pre-2020 vs. 2020–2026 vs. 2027+ Filings
Requirements differ by when your decree application was filed. Know which rules apply to you.
Content current as of November 2026.
Why Your Application Filing 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 application was filed with DDEC. The firm identifies three distinct eras:
For the Act 38-2026 cutoff, the filing date controls—not the date DDEC grants the decree. A complete application filed with DDEC on or before December 31, 2026 qualifies for the legacy terms (0% through 2035) even if DDEC issues the decree in 2027. Applications filed on or after January 1, 2027 fall under the new 4% regime through 2055. You may file before you physically relocate, but the decree takes effect only once you establish bona fide Puerto Rico residency. See Act 60 Deadline: Move by 2026 or Just File?
Comparison Table
| Requirement | Pre-2020 (Act 22 Legacy) | Filed 2020 – Dec 31, 2026 (Act 60 + Act 52-2022) | Filed on or after Jan 1, 2027 (Act 38-2026) |
|---|---|---|---|
| Capital Gains Rate | 0% | 0% | 4% |
| Annual Charitable Donation | $5,000 | $10,000 ($5K CECFL + $5K qualifying nonprofits through 2025; from 2026, $5K CECFL + $2.5K qualifying nonprofit + $2.5K Fondo Especial para la Igualdad Social) | $10,000 ($5K CECFL + $2.5K qualifying nonprofit + $2.5K Fondo Especial para la Igualdad Social) |
| 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 | Fixed look-back window under the original Act 22 rules | Fixed look-back window under the original Act 22 rules | 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
- The filing date, not the grant date, decides which column applies—a complete application filed with DDEC by December 31, 2026 keeps the legacy 0% terms even if the decree is issued in 2027
- 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 applied for or 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?
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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.