Act 22 was created by the Puerto Rico government to attract new residents by eliminating all Puerto Rico income taxes on passive income that was earned after an individual became a resident of Puerto Rico. The government believed that the new law would increase investment in real estate, consumption products and services. In short, they are looking to boost the economy of Puerto Rico.
- 100% tax exemption on all dividends
- 100% tax exemption on all interest income
- 100% tax exemption on all capital gains
- 4% corporate tax rate
See If You Qualify
Take one-minute to answer a few questions to see if you qualify for our complimentary, comprehensive tax analysis. It’s completely risk free, you have nothing to lose.