Puerto Rico Act 60

[Asense]

Any Americans here that have moved to PR to set up a company using the Act 60 incentives? I know it's slightly less attractive than in the past with some more donation requirements and a real estate purchase, but still looks interesting. Thanks.

 

[Kermit]

Yes. Be prepared to move. The residence requirements are real.

 

[Asense]

Yeah, that would be the plan. Have you done it?

 

[Kermit]

I was able to get in with Act 20/22 before the move to 60. The 4% corporate taxation isn't entirely accurate. You'll need to also pay yourself a reasonable salary and pay the normal taxes on it. Then you can issue dividends to yourself which trigger the investor status treatment. If you're married, your spouse will also need to be approved for special status.

Island time is real. I've spent 3 days getting a driver's license. I've waited a month for the Internet, days to turn on the electricity, 2 weeks to turn on the water. Accept some things just don't get fixed. The repairman might show up. He might not. He might be able to fix it, maybe not. Even at dealerships, car repair can take days just to have your car examined to see what is wrong with it. I'm not doing oil changes because it's not worth the hassle.

Dorado is popular with the expats here for family suburb life. So much so that competition for somewhere to live is fierce right now with so many people moving down after the election. Most of the real estate listings aren't real either. If you want city life, I would look at Condado and Old San Juan.

 

[brenms]

I was able to get in with Act 20/22 before the move to 60. The 4% corporate taxation isn't entirely accurate. You'll need to also pay yourself a reasonable salary and pay the normal taxes on it. Then you can issue dividends to yourself which trigger the investor status treatment. If you're married, your spouse will also need to be approved for special status.

Island time is real. I've spent 3 days getting a driver's license. I've waited a month for the Internet, days to turn on the electricity, 2 weeks to turn on the water. Accept some things just don't get fixed. The repairman might show up. He might not. He might be able to fix it, maybe not. Even at dealerships, car repair can take days just to have your car examined to see what is wrong with it. I'm not doing oil changes because it's not worth the hassle.

Dorado is popular with the expats here for family suburb life. So much so that competition for somewhere to live is fierce right now with so many people moving down after the election. Most of the real estate listings aren't real either. If you want city life, I would look at Condado and Old San Juan.

There is a loophole to get around having to spend time in PR.

 

[Asense]

I was able to get in with Act 20/22 before the move to 60. The 4% corporate taxation isn't entirely accurate. You'll need to also pay yourself a reasonable salary and pay the normal taxes on it. Then you can issue dividends to yourself which trigger the investor status treatment. If you're married, your spouse will also need to be approved for special status.

Island time is real. I've spent 3 days getting a driver's license. I've waited a month for the Internet, days to turn on the electricity, 2 weeks to turn on the water. Accept some things just don't get fixed. The repairman might show up. He might not. He might be able to fix it, maybe not. Even at dealerships, car repair can take days just to have your car examined to see what is wrong with it. I'm not doing oil changes because it's not worth the hassle.

Dorado is popular with the expats here for family suburb life. So much so that competition for somewhere to live is fierce right now with so many people moving down after the election. Most of the real estate listings aren't real either. If you want city life, I would look at Condado and Old San Juan.

Thanks for the insight. Sounds like you need to exercise patience if going to live there. How about the process when you got set up there, did you use a service provider to register Act 20/22? I think you didn't need to have the housing purchase then, were you grandfathered to exclude that clause?

 

[Kermit]

I used this service because their prices were reasonable at the time and they seemed easy to work with:
https://relocatepuertorico.com/
The process went smoothly without issues but it did take months. In the end, you'll have a contract between yourself and the PR government. Mine did not include the requirement to purchase a property.