The possibility for U.S. citizens to live in Puerto Rico temporarily or permanently is becoming increasingly accessible due to Puerto Rico’s Digital Nomad Bill and the robust incentives provided by Act 60. Together, these legislations position Puerto Rico uniquely as an ideal destination for remote professionals, entrepreneurs, and investors worldwide. In this article, we’ll explore how these two complementary laws are reshaping Puerto Rico’s economic landscape, benefiting both visitors and residents alike by fostering significant growth, innovation, and prosperity.

Puerto Rico’s New Digital Nomad Bill: A Brief Overview

Puerto Rico recently introduced the Digital Nomad Bill, a forward-thinking piece of legislation designed to attract remote workers from across the globe. Officially known as Act 27-2024, this initiative enables digital nomads—professionals who work remotely, typically for foreign companies—to live and work from Puerto Rico without facing significant legal or administrative hurdles.

The main objective of the Digital Nomad Bill is to streamline remote work arrangements, offering clarity regarding labor and taxation regulations. Specifically, the bill ensures that remote workers and their overseas employers are not burdened with unnecessary compliance issues or regulatory friction. For example, foreign companies hiring remote employees based in Puerto Rico no longer need to worry about triggering local employment laws or tax obligations. This simplification aims to position Puerto Rico competitively among Latin American and Caribbean countries already appealing to digital nomads.

Additionally, the bill clearly outlines tax responsibilities for remote workers, mandating self-reporting of income rather than imposing employer-based tax withholding. This clear and uncomplicated tax structure provides peace of mind, allowing remote workers to focus on productivity and enjoying their stay.

Key Benefits of the Digital Nomad Bill

Ease of Entry and Stay

One of the most attractive aspects of Puerto Rico’s Digital Nomad Bill is its simplicity and accessibility. Unlike some other international digital nomad visa programs, Puerto Rico’s approach involves minimal regulatory requirements, making it easy for remote workers to relocate temporarily. Whether you’re coming from the United States or another foreign country, the streamlined process significantly reduces the bureaucratic complexity typically associated with living and working abroad.

Moreover, Puerto Rico offers digital nomads the flexibility of a renewable stay, initially set at one year. This arrangement gives you ample opportunity to experience the island’s high quality of life, stunning landscapes, and vibrant cultural scene before deciding on longer-term residency or investment options.

Clarity on Employment and Taxation

A key advantage of the Digital Nomad Bill lies in its clear guidance regarding employment and tax obligations. The law explicitly exempts foreign companies from Puerto Rican employment laws, thereby removing any uncertainty for employers hiring remote workers residing temporarily on the island. For digital nomads and independent contractors, this clarity means fewer worries about inadvertently creating compliance or regulatory challenges for their employers.

Tax responsibilities are equally straightforward: remote workers are required to self-report their income rather than relying on employer withholding. This transparency ensures you can easily manage your tax obligations, whether you maintain your tax residency elsewhere or transition into becoming a Puerto Rican tax resident. Those evaluating a more permanent move may find it helpful to explore the Puerto Rico Act 60 eligibility requirements, especially as they relate to tax planning and long-term relocation benefits.

Boost to Local Economy

The arrival of digital nomads provides a substantial economic boost to Puerto Rico, benefiting local businesses across various sectors, including hospitality, real estate, and professional services. The increased consumer spending from these remote professionals stimulates growth and innovation, making it easier for local entrepreneurs and businesses to thrive.

Furthermore, the presence of digital nomads encourages the development of supportive infrastructure like co-working and co-living spaces. These amenities not only cater to nomads’ professional and lifestyle needs but also enhance Puerto Rico’s appeal as an attractive destination for remote professionals seeking an ideal work-life balance.

How the Digital Nomad Bill Complements Act 60

Puerto Rico’s Digital Nomad Bill and Act 60 (Puerto Rico Incentives Code) are designed to work in harmony, creating a uniquely attractive environment for remote workers and investors alike. While the Digital Nomad Bill simplifies short-term stays and remote employment, Act 60—sometimes referred to as Act 22-60 Puerto Rico—offers deeper, long-term tax incentives for individuals and businesses relocating to the island permanently.

This synergy provides digital nomads with an appealing pathway. You might initially visit Puerto Rico under the Digital Nomad Bill, enjoying its simplified procedures and flexible living conditions. Once you experience the island’s quality of life firsthand, transitioning into a more permanent arrangement under Act 60 becomes highly attractive. For instance, a digital nomad who discovers Puerto Rico as an ideal place to work remotely might subsequently set up a Puerto Rican corporation under Act 60, benefiting from a low 4% corporate tax rate and Puerto Rico Act 60 tax benefits, including exemptions on dividends and Puerto Rico Act 60 capital gains tax exemption (with a rate of only 4% for all new Act 60 beneficiaries starting in 2026).

These benefits—part of the broader Puerto Rico Act 60 tax benefits 2025 framework—have positioned the island as a premier jurisdiction for tax optimization. The structure is especially compelling when compared with other jurisdictions’ capital gains rules, as Puerto Rico capital gains tax Act 60 provisions can result in substantial savings for qualifying investors and entrepreneurs. Ongoing Puerto Rico Act 60 changes continue to adapt these incentives to ensure that they remain effective, sustainable, and aligned with the island’s long-term development goals.

By creating this seamless transition from short-term remote worker to bona fide resident and investor, Puerto Rico effectively attracts diverse talent and significant investment, fostering sustainable economic growth.

Economic and Community Impacts

The strategic partnership between the Digital Nomad Bill and Act 60 brings extensive economic and community benefits to Puerto Rico. The influx of digital nomads contributes significantly to local economies, boosting demand for accommodations, restaurants, and recreational activities. San Juan and other towns benefit directly from this increased spending, revitalizing local businesses and stimulating job creation.

Beyond economic stimulation, digital nomads enrich Puerto Rico’s communities culturally and professionally. They introduce fresh perspectives, ideas, and innovation, positively impacting local entrepreneurial ecosystems and professional networks. Governor Pierluisi highlighted this potential, noting that attracting remote workers is “essential to Puerto Rico’s ongoing economic growth and diversification.”

Moreover, communities like Rincón and Isabela on Puerto Rico’s west coast have embraced digital nomads, recognizing them as catalysts for sustainable local development. By engaging directly with the community, digital nomads can participate actively in local projects and collaborations, further enhancing their impact.

This positive integration helps build stronger, more dynamic communities, turning Puerto Rico into an appealing destination that successfully blends economic opportunities with an exceptional quality of life.

Key Takeaways

Together, the Digital Nomad Bill and Act 60 position Puerto Rico as a uniquely compelling destination for global remote workers and investors. By streamlining entry and residency, offering significant financial incentives, and promoting local economic development, these legislations create an optimal environment for both short-term visits and long-term investment. Whether you’re considering a temporary change of scenery or a permanent relocation, Puerto Rico offers unparalleled opportunities to enhance your professional and personal life.

Ready to explore Puerto Rico’s potential for your remote work or investment plans? Contact Tiempo Capital—a trusted multi family office in Miami and Puerto Rico —for personalized advice and insights. As experienced family office advisors and providers of tailored wealth management services, we help you navigate and leverage Puerto Rico’s attractive incentives with clarity and confidence.

If you’re looking for more insights, you can explore our full library of articles. Click here for content related to Puerto Rico or here for in-depth guidance on financial planning.

The information reflects the situation as of mid-2025, with ongoing developments in Puerto Rico’s laws and policies toward remote workers and investors.

This material is for informational purposes only and does not constitute financial, legal, tax, or investment advice. All opinions, analyses, or strategies discussed are general in nature and may not be appropriate for all individuals or situations. Readers are encouraged to consult their own advisors regarding their specific circumstances. Investments involve risk, including the potential loss of principal, and past performance is not indicative of future results.

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Sources:

Gobernador firma ley sobre trabajo remoto en la empresa privada (January 2024), Microjuris, aldia.microjuris.comaldia.microjuris.com;

Gobernadora presenta medida que extiende la Ley 60 hasta el 2055, Metro, https://www.metro.pr/noticias/2025/04/04/gobernadora-presenta-medida-que-extiende-la-ley-60-hasta-el-2055/