Feeling the Tax Burn? Act 60 is your way out.

The Shift from Tax Burden to Tax Haven

If you’re a successful entrepreneur, investor, or business owner, you’ve likely built something remarkable—and watched an incredible amount of your revenue go straight to taxes.

The tax burdens in the U.S. can be overwhelming, cutting into profits and limiting reinvestment opportunities. But imagine keeping a far larger portion of your earnings while still thriving within a supportive business environment. Puerto Rico’s Act 60 is the answer that hundreds of entrepreneurs, tech founders, and investors have found incredibly liberating.

Your Tax Savings Opportunity = Act 60

In short, Act 60, Puerto Rico’s tax incentive code, allows qualifying businesses to pay just 4% business tax. These same incentives also allow investors —in crypto, stocks, and real estate—to be exempt from federal taxes entirely, dropping to 0% capital gains tax.

This means that your tax savings aren’t just minimal; they’re transformational. Imagine the impact on your income, your business, and your future.

Step 1: Assess Your Current Tax Burden and Missed Opportunities

The first step toward leveraging Act 60 is to understand exactly how much your current tax system is costing you. For example, if you’re earning around $1 million annually, living in a high-tax state like California, New York or New Jersey could mean a combined federal and state tax rate exceeding 30%, with potentially over $300,000 of your income lost to taxes each year. In Puerto Rico, this tax rate would drop to 4%, so instead of paying hundreds of thousands, you could be paying just $40,000 in taxes.

Imagine how much you could have saved over the past five years if Act 60 had been in place for you—this difference is money that could be reinvested in your business, saved for future investments, or used to fund a more robust retirement plan.

Step 2: Qualify and Plan Your Transition

Once you see the benefits Act 60 offers, the next step is navigating the specifics to stay fully compliant. Act 60 requires qualifying for residency and registering your business in Puerto Rico to secure these tax advantages. Residency standards mean establishing Puerto Rico as your primary home, spending at least 183 days a year there. While this can require a lifestyle shift, it’s a move with significant payoffs.

For these transitions, having a CPA firm that specializes in both U.S. and Puerto Rican tax law can make the process far smoother. A qualified team can guide you through each step, ensuring that your move aligns with Act 60's standards, streamlines compliance, and allows you to unlock the full scope of tax advantages. With this roadmap, a knowledgeable CPA firm is an invaluable partner for business owners making the transition to Puerto Rico and seizing every opportunity along the way.

Step 3: Consider the Lifestyle and Community

One of the underrated aspects of Act 60 is Puerto Rico itself—this is a place with a vibrant, growing community of innovators and business owners who are drawn to its incentives and lifestyle alike. You’ll find a professional ecosystem of like-minded people who are maximizing tax savings while enjoying all that Puerto Rico has to offer. There are tech founders, crypto investors, finance professionals, and real estate moguls who are not only reducing their tax rates but building strong business connections in the process.

And yes, while the tax benefits are monumental, Puerto Rico’s lifestyle doesn’t hurt: from the beaches and natural beauty to the growing entrepreneurial support networks, the island offers both a high quality of life and an expanding community of forward-thinking professionals.

Step 4: Plan for Compliance and Continued Benefits

Once established, it’s crucial to maintain compliance to continue benefiting from Act 60. Residency must be clear and documented, and for those with businesses, operational substance requirements (such as having a physical office and hiring local employees) can further cement your eligibility and tax advantages.

Compliance isn’t complicated with the right planning—it’s simply a matter of adhering to Act 60’s guidelines, which are designed to support genuinely active businesses and committed residents.

The Cost of Waiting: What Delaying Could Be Costing You

Every year that goes by under a high-tax structure is another year of missed opportunity. Let’s run a quick calculation: if you’ve been paying 30% on a $1 million income for five years, you’ve handed over $1.5 million in taxes. With Act 60’s 4% rate, that five-year tax bill would drop to just $200,000—leaving you with an additional $1.3 million in your pocket.

That’s $1.3 million in missed reinvestment, growth opportunities, or long-term savings. Simply put, delaying the decision could mean watching more hard-earned income disappear.

The Road Ahead: Time to Plan Your Move

The transition to Puerto Rico isn’t just about lowering a tax bill; it’s about leveraging the tools that were put in place for business owners and investors. You’ve invested in your business, you’ve scaled your success—why not build on that momentum by optimizing your tax structure? A tax code like Act 60 was made for entrepreneurs like you.

Next Steps

Ready to explore if Act 60 is right for you? Schedule a consultation to get a personalized roadmap for your business. You’ve built something extraordinary—now let’s make sure you keep what you’ve earned.