The Act 60 deadline 2026 is December 31, 2026: Puerto Rico’s Individual Resident Investor decree keeps its 0% rate on interest, dividends and post-residency capital gains only for applications filed by that date. Applications filed on or after January 1, 2027 fall under Act 38-2026, with a 4% rate, a program extended to 2055 and stricter eligibility. For a clear step-by-step, read on.
By Esteban Sarmiento, Broker (Lic. C-13046), Founder of Puerto Rico Real Estate. Updated November 6, 2026. This article is informational and is not tax or legal advice. Confirm your situation with a qualified Puerto Rico tax attorney or CPA.
Act 60 deadline 2026: what changed under Act 38-2026
Governor Jenniffer González-Colón signed Act 38-2026 on March 10, 2026. The law amends the Individual Resident Investor program, the successor to Act 22, inside the Puerto Rico Incentives Code (Act 60-2019). Which rules apply depends on the date your decree application is filed. It does not depend on the date you move, and it does not depend on the date the decree is approved.
Published analyses from Grant Thornton Puerto Rico, Procopio and RSM Puerto Rico describe the same split: one set of terms for applications filed in 2026 and another for applications filed afterward.
Who the Act 60 deadline 2026 affects
New applicants
If you plan to apply, the Act 60 deadline 2026 is the date that matters. A decree application filed by December 31, 2026 keeps the 0% rate. Because the later regime is stricter and costs more, many applicants are treating this deadline as the main date on their calendar.
Existing decree holders
Existing decree holders keep the terms they signed, because a decree operates as a contract. However, they may elect to modify it to adopt the new regime and its longer horizon. Ask your attorney whether that election makes sense for your case.
Act 60 deadline 2026: does buying a home secure the 0% rate?
No. The rate is locked by filing the decree application. The home purchase is a separate requirement that follows: investors must show they acquired a Puerto Rico primary residence within two years of obtaining the decree.
This matters because a deadline invites rushed decisions. Paying a premium to close before year-end would solve a problem the law does not create. Also, owning a home does not by itself make you eligible. Individual investor benefits require bona fide Puerto Rico residency under the IRS three-part test: presence, tax home and closer connection. In short, buying a primary residence is a compliance step, not proof of a tax benefit.
Act 60 deadline 2026: one wording difference to clear with counsel
Most sources, including DDEC guidance, say the application must be filed by December 31, 2026. However, some firms describe it as “apply for and obtain.” Ask your attorney how processing time affects your file, and do not wait for the last week of the year to find out.
Act 60 deadline 2026: a practical order of steps
- First, confirm your eligibility with a Puerto Rico tax attorney or CPA.
- Next, prepare and file the decree application before December 31, 2026.
- Then define the property you want, not just the budget, and tour remotely if you are not on the island.
- After you obtain the decree, buy your primary residence within the two-year window.
- Finally, keep clean records of presence, tax home and closer connection.
Where real estate fits in
Once the application is filed, the home search can follow your own timeline instead of the calendar. If Dorado is on your list, see our guide to Dorado Beach real estate, or browse current Puerto Rico listings and our guide for buyers. To talk through your plan, call Puerto Rico Real Estate at 787-598-4024.
