Act 60 is Puerto Rico's Incentives Code, a tax decree that offers qualifying bona fide PR residents a 4% corporate tax rate on export-services income and a 0% federal capital-gains rate on post-move appreciation, in exchange for annual filing fees and a charitable donation.

Does Act 60 apply to all my capital gains?

No — only post-move appreciation is exempt. Gains built up before PR residency remain US-taxable at federal LTCG rates plus NIIT.

Is there a filing fee?

Yes. Act 60 decree holders pay an annual government filing fee and are required to make an annual charitable donation to qualifying Puerto Rico nonprofits. Both are included in this calculator's total-cost figure.

What tax year does this calculator model?

This calculator models tax year 2025 using single-filer brackets and thresholds. Brackets verified 2026-04-16.

Puerto Rico Tax Savings Calculator

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Annual Salary

Your annual W-2 salary from your S-Corp

Annual Distribution

Your annual S-Corp distributions

💰 Long-term Capital Gains Updated Act 60 only exempts appreciation that occurs after you become a bona fide PR resident. Gains on assets whose value grew before your move remain US-taxable.

Pre-move unrealized gains (one-time)

Appreciation built up on assets you already own. Act 60 does not exempt these — US federal LTCG + NIIT apply when realized.

Post-move annual appreciation

Gains realized on appreciation occurring after PR residency. 0% US tax under Act 60.

Some of my capital gains are from founder/private company stock (pre-move appreciation) Gains on stock held before the move can be partly US-source under IRC §937, which lowers the real Act 60 benefit.

If you plan to take a lower salary in PR and more as Act 60 distribution (4% flat), FICA savings increase. Defaults to your US salary.

🏝️ Puerto Rico Salary

Any reduction in PR salary vs US salary increases your distribution (taxed at 4%)

Current State of Residence We'll calculate your current state tax burden

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✓ Single filer · Tax year 2025 model
✓ Includes all Act 60 fees & donations
✓ Instant results, no signup required

Brackets verified: 2026-04-16

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