domicile.wiki

Puerto Rico

Taxes, residence and daily life for people moving to Puerto Rico: for a wealthy family, an expat employee and a remote worker. Researched .

Open Puerto Rico in the interactive guide

At a glance

For an EU-citizen family of five living off a €30M portfolio, the guide's default reader. The interactive guide recomputes everything for other passports and situations.

Score for a wealthy family
61 / 100
Tax on a €30M portfolio
€49,385 a year · Act 60 Individual Resident Investor, 4% track (Act 38-2026)
Wealth tax
none
Children inherit
tax-free
Living costs, family of five
€260,148 a year
EU member
no
Currency
USD
Capital
San Juan

Tax on investments, inheritance and wealth

Ordinary Puerto Rico residents pay 15% on long-term gains and dividends, and there is no local estate, gift or wealth tax. The draw is the Act 60 resident investor decree: 0% on dividends, interest and post-move gains until 2035 for applications filed by 31 Dec 2026; Act 38-2026 sets 4% until 2055 for later applicants. For US citizens, federal income tax still reaches non-Puerto Rico-source income such as foreign dividends, and US federal estate and gift tax still applies.

Income tax for employees and remote workers

Progressive Puerto Rico income tax of 0% to USD 9,000, then 7%, 14%, 25% and 33% above USD 61,500, with the total tax equal to 95% of the computed amount (92% for gross income up to USD 100,000). Employees pay US FICA of 7.65% (self-employed 15.3%).

Inheritance law and trusts

Puerto Rico has forced heirship: under the 2020 Civil Code half the estate is reserved for forced heirs, and the surviving spouse is now one of them. The other half is free. Puerto Rico has its own Trust Act (2012). The Hague Trusts Convention is not in force for the United States.

Daily life, scored out of 100

From public indicators (World Bank, UNDP, Transparency International and others); higher is better.

MeasureScore
Safety and personal security31
Political and institutional stability52
Legal system and property rights60
Healthcare quality and access85
Infrastructure and connectivity87
Cost of living and housing66
Business opportunities and economy67

Research notes

Puerto Rico — family-office tax dossier

Last reviewed: 2026-10-15 Tax year: 2026 Reviewer: research agent (Claude), unreviewed by a tax adviser

Summary

Ordinary Puerto Rico residents pay 15% on long-term gains and dividends, and there is no local estate, gift or wealth tax. The draw is the Act 60 resident investor decree: 0% on dividends, interest and post-move gains until 2035 for applications filed by 31 Dec 2026; Act 38-2026 sets 4% until 2055 for later applicants. For US citizens, federal income tax still reaches non-Puerto Rico-source income such as foreign dividends, and US federal estate and gift tax still applies.

Residence and eligibility

Domicile test with 180-day presumption (Deloitte Puerto Rico Highlights 2026). US federal bona fide residence (IRC §937) is separate and determines the §933 exclusion. Non-US citizens need US immigration status.

Capital gains

Standard: 15% long-term (>1 year), PwC reviewed 7 Aug 2026; JSON 0.15 for all classes. Act 60 IRI decree (Incentives Code §2022.01(a)): 0% on post-move gains until 31 Dec 2035; pre-move gains 5% if recognised after 10 years. Act 38-2026 (signed 10 Mar 2026): applications from 1 Jan 2027 get 4% until 2055 (§2022.01(b)); existing holders may elect the 2055/4% track. JSON special regimes act60_iri_0pct (0) and act60_iri_4pct (0.04). Real estate left null.

Dividends

Standard flat 15%. Act 60: 0% (filed by 31 Dec 2026) or 4% (filed from 2027). For US citizens, foreign/US dividends remain US-taxed (not PR-source).

Inheritance and gifts to children

No Puerto Rico estate, inheritance or gift tax (Deloitte 2026). US federal estate/gift tax applies to US citizens (IRC §2209 exception only for citizenship acquired via the possession).

Wealth tax

None. Municipal property tax on historical assessed values.

Special regimes

act60_iri_0pct: application by 31 Dec 2026; no PR residence 17 Jan 2006-17 Jan 2012; home purchase within 2 years; USD 10,000 annual donation; decree to 2035. act60_iri_4pct: 6-year look-back; home owned directly and recorded; 4% to 2055. Source: DDEC Informative Bulletin 2026-004 (24 Apr 2026). Status: spring-2026 law-firm reports said FOMB endorsement was pending; see the re-check below.

Re-check 2026-10-15, Act 38-2026 and the Oversight Board: the FOMB documents library lists no letter or statement on Act 38-2026 (its most recent Act 60 letters date from 2022), so no endorsement or objection could be confirmed. DDEC Informative Bulletin 2026-004 (24 Apr 2026) treats the Act as in force. The 4% track stays at medium confidence.

Company taxation (kept separate from personal tax)

CIT 18.5% + surcharge up to 19%; Act 60 export services incentives (4%) not researched.

Cost of living notes

City: San Juan (Dorado / Condado).

Open questions

Sources

Change log

Residence and succession sources

Tax sources are cited in the research notes above.