Puerto Rico
state province · United StatesPuerto Rico is the only way US citizens escape federal capital gains tax without renouncing. Act 60 residents pay 0% on crypto gains accrued after moving — for decrees obtained through 2025; applicants from January 2026 pay 4%. Requires 183+ days a year on island, a home purchase, annual donations, and tolerance for active IRS scrutiny.
Bitcoin tax treatment
Act 60 bona fide residents pay 0% on capital gains accrued after establishing residency for decrees granted through December 31, 2025; applicants from January 1, 2026 get a 4% rate instead. Appreciation from before the move remains federally taxable, and the program now runs to 2055.
territorial taxation: no
Getting in
Residency: Obtain an Act 60 Individual Investor decree, spend 183+ days per year on the island, buy a home within 2 years, and donate $10K annually to local nonprofits; filing and compliance costs run several thousand dollars a year, with stricter reporting (CPA letters, wallet disclosures) from 2026.
Citizenship: Not applicable — Puerto Rico is a US territory and residents remain US citizens.
Regime stability — the honest note
The 0% rate already became 4% for post-2025 applicants and the IRS runs an active enforcement campaign against decree holders — assume continued tightening.
Verified 2026-06-12. Tax law is paper, not bedrock — verify against primary sources before moving anything that matters. This is not tax or legal advice.
Frequently asked questions
- How long does Puerto Rico's Act 60 last?
- Act 60 decrees run through December 31, 2035 under current law. A decree granted now is locked for its term once you hold it, but the program itself is set to sunset unless the legislature renews it. Treat the 2035 date as the planning horizon, not a guarantee.
- What does Act 60 actually exempt?
- For a qualifying bona-fide resident, Act 60 drops the tax on Puerto Rico-sourced capital gains, interest, and dividends to 0%, including gains on crypto acquired after you become a resident. Gains that accrued before you moved stay taxable by the IRS, so timing matters.
- How many days do you have to spend in Puerto Rico for Act 60?
- The core test is 183 days of physical presence on the island per year, paired with breaking your tax home and closer-connection ties to the mainland. Days are counted strictly, and the presence test is the requirement most decree holders get audited on.