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Puerto Rico business explainer

Act 60, explained without the fantasy.

A clear look at how an export-services direction could work: outside demand, Puerto Rico-based operations, careful records, professional review, and local reinvestment.

Start with the truth

Act 60 is not the name of a business structure.

The operation would remain a legally registered Puerto Rico business. Act 60 is a separate incentives program that may apply to qualifying export-service income after an application, professional review, and an approved tax-exemption decree.

i
No automatic qualification.

A Puerto Rico address alone does not decide eligibility. The work performed, location of clients, source of income, recordkeeping, business structure, and decree terms all matter.

01Export services

Potentially eligible services delivered from Puerto Rico to clients or markets located outside the island.

02Puerto Rico operation

Work created, managed, documented, and delivered through a compliant island-based business.

03Local reinvestment

Outside revenue can support Puerto Rico vendors, equipment, collaborators, production, and future capacity.

Current foundation → planned direction

Build the operation first. Pursue the incentive correctly.

Current foundation

Sole proprietorship

Beginning independently, developing the brand, testing demand, and establishing reliable services and products.

  • Puerto Rico-based owner and operation
  • Independent creative and business services
  • Media, education, production, and design work
  • Early systems for sales, records, and delivery
Planned direction

Export-services operation

Establishing a compliant structure and applying for Act 60 treatment only for services that legally qualify as exported from Puerto Rico.

  • Clients and markets located outside Puerto Rico
  • Clear separation of services, products, and revenue
  • Formal accounting, contracts, and documentation
  • Application through DDEC with professional guidance
OUTSIDE DEMAND → PUERTO RICO OPERATION → LOCAL ACTIVITY → FUTURE CAPACITY

The boundary

What the plan is—and what it is not.

The objective is to sell qualifying services beyond the island and direct new revenue into a Puerto Rico-based operation, while keeping the claims precise.

The plan is

  • Built around outside clients and markets
  • Designed to create from Puerto Rico
  • Dependent on documentation and compliance
  • Intended to grow vendors and opportunities locally

The plan is not

  • A blanket tax exemption for every transaction
  • A claim that every activity automatically qualifies
  • Dependent on taking purchasing power from locals
  • A substitute for legal, accounting, or tax advice

The roadmap

Build it correctly, step by step.

Establish the business

Complete registrations, permits, banking, and accounting systems.

Define eligible services

Separate services from merchandise and other revenue.

Reach outside markets

Develop clients and customers beyond Puerto Rico.

Apply through DDEC

Seek professional guidance and an official decree.

Reinvest locally

Grow Puerto Rico operations, vendors, collaborators, and opportunities.

The point

Bring new money into Puerto Rico. Create from Puerto Rico. Grow with Puerto Rico.

This business is being designed to connect outside demand with Puerto Rico-based talent, production, and ideas—while maintaining clear records, legal compliance, and respect for the people who already call the island home.

This explainer describes a proposed business direction and does not represent an approved Act 60 decree, a guarantee of eligibility, or legal or tax advice. Final structure, eligible services, sourcing of income, and decree requirements should be reviewed with qualified Puerto Rico legal and tax professionals.