Puerto Rico

Individual - Significant developments

Last reviewed - 10 November 2023

Act 257

Act No. 257, signed by the Governor of Puerto Rico on 10 December 2018, amends the Puerto Rico Internal Revenue Code of 2011, as amended (the 'Code'). This law will apply for the years beginning after 31 December 2018 unless noted. All changes provided by this Act were incorporated in each section of this summary in detail along with any technical amendments as of January 2021.

Act 22 - The Individual Investors Act

Act 22 (as amended by Act 60 of 2019), also known as The Individual Investors Act, was approved by the Legislative Assembly of Puerto Rico during 2012. The purpose of these measures is to provide incentives to individuals who have not been residents of Puerto Rico to become residents. In order to encourage the transfer of such individuals to Puerto Rico, the Act exempts from Puerto Rico income tax their passive income, which may consist of interest, dividends, and capital gains. See the Other tax credits and incentives section for more information.

Act 52

Act No. 52, signed by the Governor of Puerto Rico on 30 June 2022, amends the 'Code' among other tax laws. Amendments affecting individual taxpayers include the reporting of foreign financial bank accounts, estimated tax payment requirements for salaried remote workers, and married filing status for the tax year when a taxpayer is widowed.