Puerto Rico Act 60 Total Cost (2026 Complete Breakdown)
Last reviewed: February 2026 | First-year total: $15,000–$50,000 | Timeline: 3–6 months for decree, 12 months for full establishment
Moving to Puerto Rico under Act 60 offers US citizens a legal path to 4% corporate tax and 0% capital gains — but the true cost goes far beyond the application fee. This comprehensive breakdown covers everything from initial application and legal setup to housing, compliance, and ongoing annual costs.
Phase 1: Application & Legal Setup
| Item | Cost | Notes |
|---|---|---|
| Act 60 Application Fee | $5,005 | Government filing fee — required |
| Tax Attorney / Act 60 Specialist | $5,000–$15,000 | Legal counsel for application preparation — required |
| Puerto Rico CPA | $2,000–$5,000 | Local CPA for PR tax returns — required |
| Annual Charitable Donation | $10,000 | Required annual donation to approved PR nonprofit |
| Act 60 Annual Report Filing | $300–$500 | Annual compliance report to DDEC — required |
Phase 1 Subtotal: $22,305–$35,505
Phase 2: Relocation & Housing
| Item | Cost | Notes |
|---|---|---|
| Rental Housing (annual) | $18,000–$48,000 | $1,500–$4,000+/month in San Juan metro — required |
| Moving Costs | $3,000–$15,000 | Shipping, travel, temporary housing — required |
| Puerto Rico Driver's License | $25–$50 | Helps establish residency ties — required |
| Utility Setup (deposits) | $500–$1,500 | Electric, water, internet — required |
Phase 2 Subtotal: $21,525–$64,550+
Annual Ongoing Costs
| Item | Annual Cost |
|---|---|
| Puerto Rico Tax Return (CPA) | $2,000–$5,000 |
| US Federal Tax Return | $1,000–$3,000 |
| Act 60 Annual Report | $300–$500 |
| Required Charitable Donation | $10,000 |
| Housing (rent/mortgage) | $18,000–$48,000 |
| Health Insurance | $3,000–$12,000 |
Total Annual Ongoing: $34,800–$79,500
Hidden Costs to Watch
- IRS audit defense costs ($5,000–$25,000+ if audited)
- US state exit tax considerations (California is particularly aggressive)
- Travel costs for mainland business meetings
- Hurricane and disaster insurance premiums
- Temporary housing during transition period ($2,000–$5,000)
Money-Saving Tips
- Live outside San Juan metro — Dorado, Rincon, or Ponce are significantly cheaper
- Join Act 60 community groups for shared CPA recommendations
- Negotiate CPA fees by bundling PR + federal returns
- Document everything for presence test — reduces audit defense costs
Frequently Asked Questions
What is the minimum cost for Act 60?
The absolute minimum for year one is approximately $15,000–$20,000, covering the $5,005 application fee, basic legal counsel ($5,000), and the required charitable donation ($10,000). A realistic all-in budget including housing and relocation is $30,000–$50,000.
Is the $10,000 annual donation really required?
Yes. The Act 60 decree requires an annual donation of $10,000 to an approved Puerto Rico nonprofit organization. Failure to make this donation can result in revocation of your decree.
How much can I realistically save with Act 60?
Someone earning $500,000/year in qualifying export services income could save $100,000–$150,000/year in combined federal and state taxes. The break-even point is typically $200,000–$300,000 in annual income.
All costs are estimates based on publicly available information as of February 2026. This page is for educational purposes only and does not constitute tax, legal, or financial advice.