This article on Puerto Rico tax benefits was originally published by Citywire Americas

Puerto Rico is emerging as the destination of choice for wealthy families—not just for the popular Puerto Rico tax benefits, but for a U.S.-based lifestyle that blends financial freedom with strategic clarity.

In this expert contribution for Citywire Americas, Alexandra Valentín, Chief Strategy Officer and Head of Puerto Rico at Tiempo Capital Partners, shares her on-the-ground perspective on why Puerto Rico is attracting a growing number of wealthy families and entrepreneurs. With over two decades of experience advising high-net-worth individuals—including Act 60 participants—Valentín offers a compelling look at the island’s evolving appeal, blending financial incentives with long-term strategic value.

Puerto Rico has quietly become a magnet for high-net-worth individuals seeking more than just lower taxes. It offers a rare blend of strategic financial advantages, lifestyle upgrades, and the convenience of staying within U.S. jurisdiction—all without sacrificing privacy, comfort, or regulatory clarity.

In this article, we explore why wealthy families, entrepreneurs, and family offices are increasingly choosing Puerto Rico—not simply as a financial play, but as a long-term lifestyle and business decision. From tax efficiency to cultural vitality, this Caribbean island offers a unique value proposition that’s hard to replicate elsewhere.

Act 60: The Tax Code That Changed Everything

For high-net-worth individuals evaluating relocation strategies, Act 60 Puerto Rico is more than a tax incentive—it’s a transformative financial tool.

Officially known as the Puerto Rico Incentives Code, Act 60 was designed to stimulate economic development by attracting eligible businesses and individual investors to the island. It merges and refines previous statutes (Acts 20 and 22) into a single, comprehensive program offering some of the most competitive tax benefits in the United States.

Here’s what makes Act 60 especially appealing:

• Individual Investor Incentives: The most important of Puerto Rico tax benefits. Qualifying residents enjoy a 100% exemption on Puerto Rico-sourced dividend income, interest, and only a 4% tax on capital gains—provided those gains are accrued after establishing a bona fide residence. This level of tax efficiency is nearly impossible to achieve without giving up U.S. citizenship elsewhere.
  
• Contractual Protection and Stability: Each Act 60 decree functions as a binding contract with the Puerto Rican government, offering protection through 2055. These decrees are upheld by both the Constitution of Puerto Rico and the U.S. Constitution, delivering long-term legal clarity rarely found in other tax optimization strategies.
  
• U.S. Territory, Global Advantages: One of the most overlooked yet powerful aspects of moving to Puerto Rico is its legal and logistical simplicity. As a U.S. territory, Puerto Rico delivers many of the perks of international living—without the red tape, regulatory headaches, or immigration barriers.

Here’s why that matters:

• No Visa, Work Permit, or Currency Complications: U.S. citizens can move, live, and work in Puerto Rico freely. There’s no need for special visas or foreign bank registrations. The island uses the U.S. dollar, and financial transactions function seamlessly with stateside institutions.
  
• Legal Familiarity and Regulatory Certainty: Puerto Rico falls under U.S. legal jurisdiction. This includes access to U.S. courts, intellectual property protections, and federal regulatory frameworks—crucial for business owners, wealth managers, and investors who depend on legal consistency.
  
• No Need to Renounce U.S. Citizenship: Perhaps the most important advantage: relocating to Puerto Rico under Act 60 allows you to retain your U.S. citizenship. Unlike traditional moves to low-tax jurisdictions or tax havens, there’s no need to renounce or compromise your legal status—making Puerto Rico a uniquely strategic and secure choice for long-term relocation.
• Global Lifestyle, Domestic Base: With modern infrastructure, two international airports, and fast connections to major U.S. cities, Puerto Rico feels well-connected to global business hubs while maintaining the comfort and convenience of a U.S. territory. This combination—Puerto Rico tax benefits with U.S. protection and convenience—sets the island apart from traditional tax havens. For affluent families who value simplicity, compliance, and strategic efficiency, Puerto Rico delivers a rare alignment of form and function.

Drawbacks

Of course, like any relocation decision, life in Puerto Rico comes with its own set of trade-offs. The island operates at a generally slower pace, and navigating local bureaucracy can require added patience. While private healthcare options exist, the broader medical system faces challenges, including limited access to specialists. Additionally, intermittent power outages remain a reality due to ongoing infrastructure issues with the electric grid.

These are important considerations—but for many, they are manageable aspects of an otherwise rewarding and strategically sound lifestyle.

Conclusion

Choosing Puerto Rico is not simply about minimizing taxes—it’s about maximizing lifestyle

From the clarity of its tax code to the vibrancy of its culture, from U.S.-level infrastructure to the island’s immersive natural beauty, Puerto Rico presents a distinctive opportunity for high-net-worth individuals ready to align lifestyle, legacy, and strategy.

With programs like Act 60, the island has redefined what a tax incentive can be: not just a benefit, but a platform for transformation. Add in the legal predictability of U.S. jurisdiction, the ease of relocation, and the emergence of a sophisticated ecosystem of professionals and peers—and Puerto Rico becomes not just competitive, but compelling.

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Puerto Rico isn’t just a tax move—it’s a strategic decision for high-net-worth individuals seeking long-term alignment between lifestyle and financial clarity. If you’re considering relocation, our team specializes in tax planning for high-net-worth clients under Act 60. Visit the our services to learn how we help Puerto Rico residents optimize their strategy. Contact us today to explore your options

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.