Puerto Rico Becomes Prime Tech Investment Hub Under Act 60

Puerto Rico Emerges as a Hub for Technology Investment

Puerto Rico is establishing itself with increasing clarity as one of the most attractive destinations for technology sector investment in the United States, drawing entrepreneurs, tech companies, crypto investors, and remote technology workers with a combination of significant tax advantages under Act 60, a growing pool of engineering and science talent, proximity to both US and Latin American markets, and a quality of life offering that blends Caribbean living with modern infrastructure and US legal and financial frameworks.

The Act 60 Advantage

Enacted in 2019 as a consolidation of Puerto Rico's previous individual and corporate tax incentive programmes (formerly known as Acts 20 and 22), Act 60 offers some of the most competitive tax rates available anywhere in a US jurisdiction. Qualifying businesses can access a fixed 4% corporate income tax rate, while qualifying individual investors can benefit from 0% tax on capital gains and dividends sourced from Puerto Rico — rates that are substantially more favourable than federal tax obligations on the mainland while still operating fully within the US legal and banking system. These incentives have attracted a significant community of technology entrepreneurs, venture capital professionals, cryptocurrency investors, and high-net-worth individuals who can satisfy Act 60's residency and charitable contribution requirements.

Science Investment and Growing Ecosystem

The Puerto Rico Science, Technology and Research Trust received a $9.5 million government allocation to expand research programmes supporting innovation-driven economic development on the island. Governor González Colón has repeatedly identified technology and innovation as key pillars of Puerto Rico's long-term economic strategy alongside pharmaceutical manufacturing and tourism. However, critics of Act 60 note that the benefits accrue primarily to wealthy in-migrants rather than the broader Puerto Rican population, and that rapid gentrification in favoured neighbourhoods — particularly Condado and Old San Juan — has driven up rents and cost-of-living for long-term residents, representing a genuine equity challenge that policymakers have not yet fully resolved.