Reduce Taxes on Passive Income
For high-net-worth individuals, Act 60 offers an attractive way to significantly lower your tax burden while living in paradise. Under this law, Puerto Rican residents who earn passive income are exempt from paying federal taxes on their Puerto Rican sourced income.
What Is Passive Income?
Passive income is income earned without active involvement, such as:
● Income from savings and investments
● Cash back rewards
● Rental income (if you’re not actively involved in real estate)
What Is Passive Income?
Passive income is income earned without active involvement, such as:
● Income from savings and investments
● Cash back rewards
● Rental income (if you’re not actively involved in real estate)
How to Qualify for Act 60 as an Individual: To take advantage of Act 60, you must spend at least 183 days per year in Puerto Rico and establish residency. Once qualified, you can benefit from the following:
Benefits for Individuals:
●4% income tax rate on Puerto Rican-sourced income
● 75% discount on property tax
●0% capital gains tax on gains earned while residing in Puerto Rico
