Incentives · Site Selection
Specific enough to inform site selection decisions. Time-sensitive enough to warrant action before the December 2026 individual investor deadline.
Corporate
Three decree categories under Act 60 — standard manufacturing, small business, and novel pioneer activity.
| Category | Standard (>$3M) | Small (≤$3M) | Novel Pioneer |
|---|---|---|---|
| Corporate Income Tax | 4% | 2% → 4% after yr 5 | 1% |
| Dividend Tax | 0% | 0% | 0% |
| Property Tax Exemption | 75% | 100% → 75% after yr 5 | 75% |
| Municipal Tax Exemption | 50% | 100% → 50% after yr 5 | 50% |
| R&D Tax Credit | Up to 50% | Up to 50% | Up to 50% |
| Min. Employment | 1 FTE resident | None | Case by case |
Master Grant
DDEC Consolidation
The DDEC Master Grant consolidates Manufacturing (Ch. 6), Export Services (Ch. 3), and Energy (Ch. 7) into a single decree. Eliminates the need to manage separate applications for multi-faceted operations.
Two pathways for existing companies: decree renegotiation (commit to 25%+ employment increase) or successor manufacturing business status (maintain employment 25%+ above predecessor's 3-year average).
Recommended for any defense contractor establishing physical operations.
Individual
0% on interest, dividends, and post-relocation capital gains through 2035 — if decree secured by December 31, 2026.
Program extended to 2055 but the 0% window is not. Post-2026 applicants: 4% rate, enhanced residency audits, must acquire residential real estate within two years.
Clearshore does not provide legal or tax advice. Engage qualified Puerto Rico tax counsel. Act 60 decrees are contractual instruments signed with the Government of Puerto Rico.