PROJECT 505: ACT 60 EXTENSION
Over the past several years, one of the most common questions we’ve received from buyers and relocation clients has centered on the long term future of Act 60 beyond its original 2035 sunset date. For many, legislative uncertainty was the only variable giving pause in an otherwise compelling relocation decision.
That uncertainty has now been resolved.
Project 505, widely known as the Act 60 Extension, has officially passed both the House and Senate, extending the program’s sunset to 2055. This development reinforces Puerto Rico’s long term economic strategy and provides meaningful clarity for investors, founders, and globally mobile families evaluating a move to the island.
What the Extension Means
The legislation delivers continuity where it matters most:
- New Sunset Date: Extended to 2055
- Corporate Tax Rate: 4% remains unchanged
- Program Requirements: No changes to current Act 60 criteria
- Effective Date: January 1, 2027
For capital allocators and entrepreneurs, predictability is not a luxury, it is a prerequisite. Markets reward stability, and this extension significantly strengthens Puerto Rico’s position as a credible, long term jurisdiction for wealth migration and business relocation.
Direct Impact on the Luxury Real Estate Market
As a luxury real estate firm working closely with Act 60 clients across Puerto Rico, we see firsthand how legislative clarity directly influences high value purchasing decisions. In premier communities such as Dorado and other top tier enclaves, confidence in long term policy translates into meaningful real estate commitments.
Ultra luxury buyers are not making short term moves. They are establishing primary residences, building legacy properties, relocating companies, and embedding themselves into the island’s economic fabric. Long term certainty supports that level of commitment.
A Strengthened Outlook for Puerto Rico
With the extension now in place, Puerto Rico is more firmly positioned as a serious and enduring destination for founders, investors, and families seeking strategic tax optimization without compromising lifestyle, infrastructure, or community.
For those planning relocation in 2027 and beyond, the runway has expanded significantly. The framework is stable, the incentives remain competitive, and the long term vision is clear.
Our outlook on Puerto Rico and its luxury real estate market has never been stronger.
