Does Your Business Qualify for Puerto Rico’s Act 60?
Victor Delerme
CEO, Delerme CPA | Act 60 Services | Assisting Investors and Business Owners Incorporating in Puerto Rico to Maximize Profits Through Tax Incentives
Is Your Business Leaving Money on the Table? Discover if You Qualify for Puerto Rico’s Act 60.
In today’s world, every entrepreneur and business owner is constantly seeking ways to reinvest into their growth, scale their operations, and maximize their profits. But here’s the catch: while you’re growing your business, you’re likely losing a significant portion of your revenue to federal taxes. That’s where Puerto Rico’s Act 60 steps in as a game-changer, allowing qualified businesses to substantially cut their tax burden while continuing to thrive.
If you’ve been curious about whether your business can benefit from this powerful tax incentive, keep reading. Below, we break down the types of businesses that qualify for Puerto Rico’s Act 60—and how making the move could be the smartest business decision you make.
What is Act 60?
Before diving into the qualifying businesses, let’s recap what Act 60 offers. Under Puerto Rico’s Act 60, eligible businesses that generate revenue from customers outside of Puerto Rico can enjoy these major tax incentives:
These incentives can significantly impact your bottom line, keeping more capital within your business so you can reinvest it into what matters most: growth, innovation, and sustainability. Now, let's look at what types of businesses qualify for Act 60.
Who Qualifies? A Breakdown of Eligible Businesses
1. Advertising and Public Relations If your business handles marketing, branding, or PR for clients outside of Puerto Rico, you’re in luck. These services are often considered exports when serving global or U.S.-based clients, making you eligible for Act 60. Imagine cutting your taxes dramatically while maintaining the same client base, all because you’ve relocated your operations.
2. Consulting For consultants in fields like strategy, management, finance, or human resources, Act 60 opens the door to keeping more of your hard-earned income. Whether you're advising startups or Fortune 500 companies, if your clients are based outside Puerto Rico, you qualify for the tax breaks.
3. Creative Industries (Design, Music, App & Video Game Development) Act 60 embraces creative industries, recognizing the global impact of design, music, app development, and video games. If you’re an artist, developer, or designer with clients and audiences outside Puerto Rico, your income could be taxed at just 4%. It’s a dream for those in creative professions who are looking to innovate while protecting their profits.
4. Technology & Software The world runs on tech. Whether you’re a software developer, cloud provider, or offer SaaS solutions, Puerto Rico's Act 60 is designed to support tech businesses. With the tax benefits, you can focus on scaling your innovation without watching half your revenue vanish to taxes.
5. Information Systems IT services, data management, and systems administration are core to today’s business infrastructure. Act 60 allows these businesses to thrive by alleviating the tax burden, so you can serve global clients and reinvest in your capabilities.
6. Engineering, Architecture, Project Management If you're running an engineering, architecture, or project management firm, your services could qualify for Act 60 benefits as long as your clients are outside Puerto Rico. The ability to cut taxes and operate with higher profitability could give your business a major advantage.
7. Health & Lab Services (including Telemedicine) The healthcare industry is rapidly expanding, especially with telemedicine. If your healthcare or lab services business serves clients or patients outside of Puerto Rico, the reduced tax rate could give you the opportunity to expand your services while significantly boosting profits.
8. Investment Banking and Other Financial Services Financial services, including investment banking, advisory services, and asset management, are key sectors under Act 60. Serving clients outside Puerto Rico makes you eligible for the significant tax incentives, ensuring that your profits stay with you—and not with the taxman.
9. Marketing Services If your business is focused on delivering marketing strategies or digital advertising to clients abroad, this is the perfect opportunity to qualify for Act 60. With tax breaks on your side, you'll be able to redirect your tax savings into your marketing efforts or business growth.
10. Professional Services (Law and Accounting) Whether you’re a law firm or an accounting practice, if you're servicing clients outside Puerto Rico, you’re eligible. This includes a wide array of professional services, where cutting your tax rate means boosting your cash flow for long-term growth.
11. Research & Development (R&D) Innovation fuels the future, and R&D businesses are a core focus of Act 60. By relocating to Puerto Rico, you’re able to continue your research while keeping the majority of your profits. This makes Puerto Rico an ideal hub for businesses focused on creating the next big thing.
12. HQ Operations Many global businesses are establishing headquarters in Puerto Rico to take advantage of Act 60. If you’re considering relocating your business HQ, this is an opportunity to position your operations in a favorable tax environment while still serving your global client base.
13. Communication & Call Centers Call centers and customer support services are crucial for businesses that serve customers worldwide. If your operations focus on communication services, relocating under Act 60 can help you cut taxes while continuing to provide excellent service globally.
Why Consider Act 60?
For entrepreneurs and business owners, moving your operations to Puerto Rico under Act 60 is more than just a tax break—it’s a way to take control of your future. Whether you're running a tech startup, providing consulting services, or managing investments, the potential to cut taxes and keep more of your income allows you to focus on scaling, expanding, and innovating.
Think about it: Why continue paying excessive taxes when you could significantly reduce your liability and reinvest in what truly matters—your business and its long-term success?
Is Your Business Ready to Benefit?
If you’re still unsure if Act 60 is the right fit for your business, the starting point is knowing whether your business qualifies. With such a wide range of industries eligible for these tax incentives, now’s the time to explore your options.
Schedule a free consultation to see if Act 60 is a fit for your business!
Puerto Rico’s Act 60 offers business owners and entrepreneurs an unprecedented opportunity to not only cut their taxes but also set themselves up for greater financial flexibility. Whether you're in advertising, healthcare, tech, or finance, there’s a good chance your business could benefit.