Quickly Check Your Act 60 Compliance in Isla Verde

Living in Isla Verde while benefiting from Act 60 tax incentives is an incredible opportunity. This tax code allows you to pay a low 4% tax on eligible business income and zero tax on investment gains. It’s designed to attract entrepreneurs and investors to Puerto Rico. To qualify, you must become a bona fide resident of the island, which involves spending a significant amount of time here and making Puerto Rico your true home. For Isla Verde residents, this means your life—social, familial, and financial—should be centered in Puerto Rico. Our tool helps you quickly assess if you're meeting these fundamental requirements, providing a straightforward check on your residency status and other core compliance points. It’s a simple way to ensure you’re on the right track.

Many new Act 60 beneficiaries run into similar issues. The most common is failing to properly document their time spent on the island to meet the physical presence test. Another frequent problem is not correctly sourcing their income—only income earned from services performed in Puerto Rico for clients outside of Puerto Rico qualifies for the 4% rate. It's also easy to forget the annual $10,000 donation to a certified Puerto Rican charity. These may seem like small details, but they are critical for maintaining your decree. Our compliance check is designed to flag these common problem areas, giving you a quick heads-up if something needs your attention. It’s a fast and easy way to spot-check your situation and avoid simple but costly errors.

The IRS and Puerto Rico's Hacienda are increasing their scrutiny of Act 60 participants. An audit can be a stressful and expensive process, even if you believe you've done everything correctly. Performing a quick, regular compliance check is a smart, proactive step. It provides an affordable second opinion on your tax position, helping you catch potential issues before they attract unwanted attention. Think of it as a preventative measure. For a small investment of time, you get a valuable snapshot of your compliance health. This allows you to address any concerns with your primary tax advisor from a more informed position, ensuring you can continue to enjoy the benefits of living in Isla Verde without unnecessary worry. It’s a small price to pay for significant peace of mind.