Moving to Puerto Rico: tax, residence and real costs (2026)
Puerto Rico: US citizens: 0% on Puerto Rico dividends, interest and post-move gains · 4% on export-services companies. The cheapest route to residence is act 60: move (US citizens freely), USD 5k application, buy a home within 2 years: about USD 5,000 in fees doing it yourself, with no investment, in about 3 months. Living costs about USD 1,900 a month for one person in the main city, and around USD 1,350 on a bare-minimum budget.
Key facts
| Tax in one line | US citizens: 0% on Puerto Rico dividends, interest and post-move gains · 4% on export-services companies |
| Foreign income | for US citizens moving there: 0% on Puerto Rico-source dividends and interest, 0% on gains accrued after moving |
| Gains · dividends | 0% on post-move gains (Act 60) · 0% (PR-source) |
| Wealth · inheritance tax | none · - |
| Cheapest residence | Act 60: move (US citizens freely), USD 5k application, buy a home within 2 years |
| Money needed | About USD 5,000 in fees doing it yourself, with no investment |
| Time | about 3 months |
| Doable yourself? | Mostly; a local fixer for one step helps |
| Days you must spend there | 183 days, tax home, closer connection |
| Citizenship | US |
| Online business | 4% effective, about USD 15k a year to run: PR LLC at 4% on export services; USD 10k donation + annual report fee each year |
| Living (one person a month) | main city ~USD 1,900; bare minimum ~USD 1,350; family of four ~USD 4,550 |
| Good for | Act 60: 4% corporate tax for export services, 0% on PR-source passive income and on gains accrued after the move; the only big break inside US tax |
| Common set-up | Act 60 decree + a PR LLC selling services to the mainland + a home bought within 2 years + USD 10k yearly charity |
Pros and cons
| Pros | Cons |
|---|---|
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Programmes
| Programme | All-in, one person | Months | Notes |
|---|---|---|---|
| Act 60 resident investor decree | USD 25k | 4 | For US citizens: USD 5k application, USD 10k yearly to a PR charity, a home bought within 2 years. |
Questions
- How much does residence in Puerto Rico cost?
- Act 60: move (US citizens freely), USD 5k application, buy a home within 2 years: about USD 5,000 in fees doing it yourself, with no investment, about 3 months.
- Does Puerto Rico tax foreign income?
- For US citizens moving there: 0% on Puerto Rico-source dividends and interest, 0% on gains accrued after moving. In one line: US citizens: 0% on Puerto Rico dividends, interest and post-move gains · 4% on export-services companies.
- What does it cost to live in Puerto Rico?
- Living costs about USD 1,900 a month for one person in the main city, and around USD 1,350 on a bare-minimum budget (based on livingcost.org, 2026).
- Can I run an online business from Puerto Rico?
- Effective tax about 4% with the cheapest legal set-up, which costs about USD 15k a year: PR LLC at 4% on export services; USD 10k donation + annual report fee each year.
- What is the catch in Puerto Rico?
- US citizens are taxed worldwide anywhere else.
- What residence or citizenship programmes does Puerto Rico have?
- Act 60 resident investor decree: about USD 25k all-in for one person, ~4 months
Compare
- Bahamas: 0% on foreign income · 0% on local income · no gains or estate tax
- Cayman Islands: 0% on foreign income · 0% on local income · no gains or estate tax
- Bermuda: 0% on foreign income · 0% on local income (payroll tax on wages)
- Turks and Caicos: 0% on foreign income · 0% on local income
- Anguilla: 0% on foreign income · 0% on local income
- St Kitts and Nevis: 0% on foreign income · 0% on local income
- Antigua and Barbuda: 0% on foreign income · 0% on local personal income
- Barbados: 0% on foreign income not brought in · up to 28.5% on local income · no gains tax
Compare all 53 places with your own income and budget →
Sources
- https://www.ddec.pr.gov
- Living costs: based on livingcost.org (estimate), rounded