Puerto Rico Act 60 Costs in 2026: The Official Fee Schedule The allure of Puerto Rico's Act 60 tax incentives is undeniable. For high-net-worth individuals, traders, and service-based business owners, the promise of a 0% tax on capital gains or a 4% corporate tax rate can be life-changing. However, like any sophisticated financial strategy, these benefits are not accessed by simply showing up. Act 60 is a formal, structured government program—a binding contract between you and the Commonwealth of Puerto Rico. Engaging with this program involves specific, non-negotiable costs that are essential to understand from the outset. Many prospective applicants hear rumors or get lost in conflicting information online about the true cost of securing and maintaining an Act 60 decree. This guide cuts through the noise. We will provide a definitive breakdown of the official government fees you can expect to pay in 2026, based directly on the text of the law itself: Puerto Rico's Act 60-2019, also known as the Incentives Code (Código de Incentivos). Understanding these costs is the first step in a successful application. It allows you to budget properly, manage expectations, and approach this opportunity with the financial clarity required for long-term success. This is not about hidden fees; it's about a transparent, predictable investment in a powerful financial future. ## The One-Time Application Fees: Your Entry Cost Before you can enjoy the tax benefits, you must formally apply for and be granted a tax decree. This decree is a legal contract between you and the Puerto Rican government that guarantees your tax rates for a set term, typically 15 years. The government charges a one-time, non-refundable fee to process this application, review your documentation, and issue the final decree. Think of this as the administrative cost of securing one of the most powerful tax incentives available to Americans. These fees are not arbitrary; they are codified in the law and represent the government's investment in managing the Office of Incentives, the body responsible for overseeing the entire Act 60 program. The cost varies depending on the complexity and value of the specific incentive chapter you are applying for. ### The General Application Filing Fee For many of the numerous chapters available under the Act 60 umbrella, there is a standard, foundational application fee. This fee accompanies the submission of your formal application package to the Department of Economic Development and Commerce (DDEC). As stipulated in Section 6070.11 of the Incentives Code, the base application filing fee is **$750**. This fee applies to a wide range of incentive chapters that, while valuable, are less commonly pursued by individuals and businesses relocating from the mainland. It covers the initial administrative handling and docketing of the application. However, for the most powerful and popular chapters, a more substantial fee is required. ### Specific Chapter Application Fees The vast majority of individuals and businesses moving to Puerto Rico to leverage Act 60 are focused on two primary chapters: the Individual Resident Investor (formerly Act 22) and the Export of Goods and Services (formerly Act 20). These chapters offer the most significant tax savings and are therefore the most sought-after. Recognizing the immense value and the administrative diligence required to approve these decrees, the government has established higher application fees for them. The official application filing fees for these key chapters are: * **Individual Resident Investor (Chapter 2):** **$5,000** * **Export of Goods and Services (Chapter 3):** **$5,000** This $5,000 fee reflects the high-value nature of the tax decree being issued. An Individual Resident Investor decree, for example, can shield an individual from millions of dollars in capital gains taxes. An Export Services decree allows a business to operate at a mere 4% corporate tax rate. The application fee is a small, initial investment relative to the immense and ongoing financial benefits that the decree unlocks. It is a processing fee for a multi-million dollar tax strategy, ensuring the program is treated with the seriousness it deserves by both the applicant and the government. ## The Annual Compliance Costs: Maintaining Your Decree Securing your Act 60 decree is just the beginning. The decree is a living contract that requires you to meet specific ongoing obligations to remain in good standing. The Puerto Rican government has established clear annual compliance requirements to ensure that decree holders are contributing to the local economy and upholding their end of the bargain. These requirements come with their own set of annual costs. Failing to meet these annual obligations can result in fines, penalties, or even the revocation of your tax decree. Therefore, it is critical to budget for these costs and treat them as a mandatory part of your annual financial planning. ### The Annual Report Filing Fee Every year, each Act 60 decree holder must file an annual report with the Office of Incentives. This report is a crucial compliance document that demonstrates you are continuing to meet all the terms and conditions of your specific decree. This includes proving your residency, detailing your business operations, and confirming your required contributions. Associated with this filing is a modest administrative fee. The annual report filing fee is **$300**. This fee is due by the tax filing deadline, typically May 15th of each year, and is paid upon submission of the report. It is a straightforward cost of doing business under the program, covering the administrative work required by the Office of Incentives to review your file and confirm your continued compliance for the preceding year. ### The Mandatory Annual Charitable Donation This is one of the most important—and often misunderstood—financial requirements of the Act 60 program, specifically for those holding an Individual Resident Investor decree. As part of the government's goal to ensure that the benefits of the program are shared with the local community, the law mandates a significant annual charitable contribution. The required annual donation for an Individual Resident Investor is **$10,000**. This is not an optional act of goodwill; it is a legal requirement of the incentive. The donation must be made to a registered, certified Puerto Rican non-profit organization operating under Section 1101.01(a)(2) of the Puerto Rico Internal Revenue Code. Crucially, the non-profit cannot be owned or controlled by the investor, their family members, or their business partners. The law requires that at least $5,000 of this donation go to an organization that works with children or focuses on eradicating child poverty. The remaining $5,000 can be donated to any other qualifying 1101.01 non-profit of the investor's choice. This ensures that the wealth being shielded by the incentive program directly contributes to the social fabric and addresses pressing needs within the Commonwealth. Proper documentation of this donation is a key component of the annual report, and failure to make the full, qualifying donation is a serious compliance breach. ## A Sample Cost Breakdown for an Individual Resident Investor To put these figures into a practical context, let's walk through a clear, year-by-year cost summary for the most common applicant profile: an Individual Resident Investor. This breakdown covers only the official government fees and mandatory contributions. **Year 1 Cost: The Application Year** This is the year you apply for and are granted the decree. The costs are front-loaded as you pay the one-time application fee. * One-Time Application Fee (Individual Resident Investor): **$5,000** * First Annual Charitable Donation: **$10,000** * **Total Year 1 Official Cost:** **~$15,000** It is important to note that while the application fee is paid upfront, the charitable donation is due by the end of the calendar year. This brings the total direct cost to the government and required entities to approximately $15,000 in your first year. **Year 2 and Onward Cost: The Compliance Years** Once your decree is active, your annual costs stabilize to a predictable compliance rhythm. * Annual Report Filing Fee: **$300** * Annual Charitable Donation: **$10,000** * **Total Annual Onward Official Cost:** **~$10,300** This ~$10,300 figure represents the ongoing, mandatory investment required to keep your valuable tax decree in full force and effect each year. When compared to the potential tax savings on capital gains and dividends, which can easily run into six or seven figures, this compliance cost is a manageable and justifiable expense. ## Other Potential Costs (Professional Fees) The figures detailed above are the direct, official costs paid to the Puerto Rican government or its mandated non-profits. However, they do not represent the complete financial picture. Navigating the Act 60 application and compliance process is a complex legal and financial undertaking. It is not a DIY project. Virtually every successful applicant retains a team of professionals to ensure the process is handled correctly. These professional fees are a necessary and critical part of your overall budget. They include: * **Legal Fees:** You will need a qualified Puerto Rican attorney specializing in Act 60 to prepare and file your application, interpret the nuances of the law, and ensure your decree is structured correctly for your specific situation. * **Accounting Fees:** A Certified Public Accountant (CPA) with expertise in both U.S. and Puerto Rican tax law is essential. They will help you structure your financial affairs, ensure you are compliant with residency rules (like the Bona Fide Resident test), and handle your annual tax filings. * **Consulting Fees:** Many applicants use consultants to manage the overall relocation and application strategy, from initial planning to connecting with the right local professionals on the island. These fees can range from a few thousand to tens of thousands of dollars, depending on the complexity of your financial situation. While they are not "government fees," they are an indispensable part of the real-world cost of a successful Act 60 strategy. Investing in expert advice upfront saves you from costly mistakes, compliance issues, and the potential loss of your decree down the road. ## Conclusion & Call to Action The costs associated with Puerto Rico's Act 60 are not a mystery. They are clearly defined by law and structured to be transparent and predictable. For an Individual Resident Investor, the path is clear: an initial outlay of approximately $15,000 in the first year to cover the application and mandatory donation, followed by an ongoing annual commitment of around $10,300 for compliance and the continued donation. When viewed in the context of the extraordinary tax savings on offer—a 0% tax rate on all Puerto Rico-sourced capital gains and dividends—these costs are a modest investment in a profoundly valuable financial tool. By understanding the official fee schedule, you can approach this opportunity with confidence, prepared for the financial commitment required to unlock decades of tax-advantaged growth. The key is to see these fees not as a hurdle, but as a clear, well-lit pathway to securing your financial future in Puerto Rico. Ready to find your best strategy? Start the qualification intake.