Act 60 Requirements 2026: The Complete Eligibility Checklist

Every requirement to qualify for — and keep — a Puerto Rico Act 60 decree, in one place, with links to the details that matter for your situation.

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Content current as of July 2026. This page is general information, not legal or tax advice, and does not create an attorney-client relationship. Requirements are set by statute and regulation and change; confirm the current rules with qualified counsel before acting.

First, which decree are you applying for?

“Act 60” is an umbrella. The two decrees that draw most relocators have different requirements, so start by identifying yours:

Chapter 2 — Individual Resident Investor. For individuals who move to Puerto Rico and want 0% (or, after 2026, 4%) Puerto Rico tax on qualifying interest, dividends, and post-move capital gains. See the Individual Investor decree →
Chapter 3 — Export Services. For a Puerto Rico business selling services to clients outside Puerto Rico, taxed at a 4% corporate rate with a 100% distribution exemption. See the Export Services decree →

Some people need both — an individual decree and a business decree — and the requirements stack. Start with the Act 60 overview →

The core requirement: bona fide Puerto Rico residency

Nothing else matters if you are not a bona fide resident of Puerto Rico under IRC §937. You must satisfy all three tests, every year:

Presence test — generally at least 183 days a year in Puerto Rico (there are alternative day-count safe harbors, but 183 is the working rule).
Tax-home test — your principal place of business or employment must be in Puerto Rico.
Closer-connection test — your home, family, belongings, banking, driver’s license, voter registration, and community ties must center on Puerto Rico rather than the mainland.

The 183 days alone are not enough; failing any one of the three tests can disqualify your residency for the whole year. Read the full bona fide residency and source-of-income rules → and see the federal residency test in detail →

The deadline requirement

When you establish residency changes what you get. To lock the 0% rate on the Individual Investor decree, you generally must become a bona fide resident by December 31, 2026; move after that and later applicants face the new 4% rate on passive income. The filing date and the move date are not the same thing, and the difference can be worth a great deal. Move by 2026 or just file? See the deadline rules →

The ongoing obligations (this is where decrees are lost)

The decree is a contract with the government. Keeping it requires:

Buy a Puerto Rico home within two years — a principal residence purchased from an unrelated seller, held personally or in a qualifying trust (not an LLC). Individual Investor decree holders only.
Annual charitable donation of $10,000 — beginning in your second taxable year, split 50/50 between two qualifying Puerto Rico nonprofits, one of them a child-poverty organization.
Annual report with a $5,000 filing fee — filed with the DDEC (Office of Incentives) each year.
Biennial compliance certificate — a periodic Report of Compliance, which carries a separate professional fee. See the compliance-certificate requirement →
Maintain bona fide residency every single year — the tests above are not a one-time gate; they are an annual one.

Miss these and you risk fines — or revocation of the decree. Keep them all on one schedule: the Act 60 annual compliance calendar →

Extra requirements for the Export Services (Chapter 3) decree

A business decree adds substance requirements: a genuine Puerto Rico business, services actually performed from Puerto Rico for clients outside Puerto Rico (the export requirement), a real nexus to the island, and, in many cases, employees. Structuring the entity and documenting the export nexus is where most Chapter 3 decrees succeed or fail. See Chapter 3 export-services compliance →

The requirement everyone forgets: your federal obligations continue

An Act 60 decree is a Puerto Rico result. It does not end your U.S. federal obligations. You remain a U.S. taxpayer: you generally still file a federal return, file Form 8898 in the year you move, and report worldwide (FBAR, FATCA). Business owners with a foreign company still face GILTI and Subpart F. Getting this wrong is a common, expensive surprise:

What changed for 2026 and beyond

Act 38-2026 (HB 505) extended the program to 2055 but tightened the terms: a 4% rate on passive income for post-2026 applicants, a six-year non-residency lookback, and confirmed the annual fee and donation figures above. If you are timing a move, these changes drive the math. See what Act 38-2026 changed →

Are you actually a fit?

Meeting the requirements on paper is not the same as Act 60 being worth it. Two honest self-checks before you spend money:

Act 60 eligibility quiz — a 2-minute self-check on whether the program fits you.
Who should NOT move for Act 60 — the 7 red flags that mean it may not deliver.
What Act 60 really costs — the all-in budget and break-even math.

Frequently Asked Questions

What are the main requirements to qualify for Act 60?

For the Individual Resident Investor decree: become and remain a bona fide Puerto Rico resident under IRC §937 (the presence, tax-home, and closer-connection tests), buy a Puerto Rico principal residence within two years, make a $10,000 annual charitable donation beginning in the second year, file an annual report with a $5,000 fee, and obtain a biennial compliance certificate. The Export Services decree adds business-substance and export requirements. Your U.S. federal filing and reporting obligations continue throughout.

How many days do I need to spend in Puerto Rico?

Generally at least 183 days a year in Puerto Rico under the presence test — but that is only one of three tests. You also need your tax home and your closer connection in Puerto Rico. There are alternative day-count safe harbors, but relying on them without the tax-home and closer-connection tests is risky, and any part of a day can count differently when a former high-tax state audits your departure.

Do I have to buy a house in Puerto Rico?

For the Individual Resident Investor decree, yes — you must purchase a Puerto Rico principal residence within two years of obtaining the decree, from an unrelated seller, held personally or in a qualifying trust (not through an LLC). It must be your actual principal residence, consistent with the closer-connection test. The Export Services (business) decree does not carry this personal-residence requirement.

Related Resources

Want a straight answer on whether you qualify?

We run an eligibility and tax-impact diagnostic — residency picture, income mix, deadline, and the federal, Puerto Rico, and prior-state pieces — so you apply with confidence, not guesswork.

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The information on this page is for general educational purposes only and does not constitute legal or tax advice. Act 60 eligibility and obligations depend on individual circumstances and on statutes and regulations that change. No attorney-client relationship is formed by viewing this content. For advice specific to your situation, schedule a consultation.