Act 22 vs. Act 60: Same Program, New Name, Stricter Terms
Act 22 no longer exists as a standalone law — it became Chapter 2 of Act 60 when Puerto Rico consolidated its incentive statutes into the Incentives Code (Act 60-2019), effective January 1, 2020. The investor benefit survived the rename; the terms around it tightened, and they tightened again with the 2026 amendments. Here's the mapping.
The name mapping
| Old law (2012) | Act 60 equivalent | What it covers |
|---|---|---|
| Act 22 — Individual Investors Act | Act 60 Chapter 2 (Resident Individual Investor) | 0%/4% on PR-source capital gains, dividends, interest for new bona fide residents |
| Act 20 — Export Services Act | Act 60 Chapter 3 (Export Services) | 4% corporate rate for services exported from PR |
Forums, older articles, and even IRS materials still say "Act 22" — including the federal examination campaign, which references both names. Searching either term leads to the same program.
What changed for new applicants at consolidation
Applicants under Act 60 (2020 onward) face stricter terms than legacy Act 22 grantees:
- Donation doubled and split: from $5,000 to $10,000/year, with the mandatory $5,000 CECFL / $5,000 Hacienda-qualified split (annual requirements).
- Home purchase became mandatory: residential property within 2 years of the decree (requirements).
- Costs rose: including the $5,000 annual fee now attached to individual decrees (full costs).
The direction of travel has been one-way — 2012 terms were looser than 2020's, which are looser than the post-2026 regime (4% rate, registry recording). Each cohort keeps the terms of its own decree.
What legacy Act 22 holders keep
Decrees are contracts: an Act 22 grantee generally keeps their original decree terms for its duration. Two things changed anyway: compliance enforcement — audits, the automatic-fine regime, and portal documentation requirements apply across cohorts — and federal scrutiny, which examines bona fide residency identically regardless of which statute issued the decree.
Which rules apply to you?
The controlling date is your application filing date: pre-2020 filings → Act 22 terms; 2020 through Dec 31, 2026 → Act 60 current terms (0%); after Dec 31, 2026 → the amended regime (4%). The federal residency tests — 183 days, tax home, closer connection — are constant across all three.
Frequently Asked Questions
- Is Act 22 still available?
- Not by that name — the same benefit is available as Act 60 Chapter 2, through 2055 under current law.
- I have an Act 22 decree — do the new donation rules apply to me?
- Decree terms generally follow the contract as granted; compliance procedures (portal filings, fines) apply currently. Individual decree language controls — a question for a licensed professional.
- Why do people still say Act 22?
- Twelve years of branding. Search engines treat the terms as near-synonyms, which is exactly why this page exists.