Chapter Nine

Building Your Professional Team

Here is a sentence that will save you money, time, and potentially a great deal of stress: do not try to navigate this without the right professionals.

We know. You're successful. You've figured out complicated things before. You have a great accountant and a smart attorney back home. But Act 60 is a specialized area, and the cost of getting it wrong — in taxes, penalties, and potentially a lost decree — dwarfs the cost of hiring specialists.

Here's the team you need.

The Act 60 Attorney

Your most important hire. This person will file your decree application, advise on structuring, review your compliance on an ongoing basis, and be your first call if the IRS ever sends you a letter.

What to look for: someone who has filed dozens of Act 60 applications specifically, who understands both Puerto Rico tax law and the federal overlay, and who has experience defending clients in IRS inquiries. Ask how many Act 60 decrees they've obtained. Ask whether they've dealt with IRS examinations of Act 60 compliance. Ask for references from existing clients.

What to avoid: mainland attorneys who have "looked into" Act 60, generalist Puerto Rico attorneys who handle it occasionally, anyone who tells you the compliance is easy and you don't need to worry much.

The Puerto Rico CPA

Puerto Rico has its own tax system, its own forms, and its own filing requirements — separate from and in addition to your federal filing obligations. You need a CPA who lives and breathes this.

Your mainland CPA may be excellent at what they do. They are not the right person to be lead counsel on your Puerto Rico compliance unless they have specific, demonstrated Act 60 expertise. Many successful Act 60 residents use a Puerto Rico CPA for local compliance and keep their mainland CPA for the federal coordination.

The Wealth Advisor

If you have a significant investment portfolio, your wealth advisor needs to understand the Act 60 sourcing rules well enough to structure your portfolio correctly. Income that is U.S.-sourced does not qualify for the Act 60 exemption. Structuring your investments to be Puerto Rico-sourced where appropriate — and understanding what that means and doesn't mean — requires coordination between your wealth advisor and your Act 60 attorney.

This is not a small nuance. Significant wealth advisory firms now have Puerto Rico practices specifically for Act 60 clients. If your current advisor isn't fluent in this, get a specialist.

The Real Estate Professional

You are required to purchase Puerto Rico real estate within two years of your decree. You will also be buying in a market with its own dynamics, its own inventory patterns, and its own quirks. A Puerto Rico real estate professional who knows the Dorado market specifically is invaluable.

Note: real estate in Puerto Rico is also a compliance asset. The property you buy, where it's located, and how you use it all factor into demonstrating bona fide residency. This is not just a lifestyle purchase — it's part of your compliance structure.

The Local Banker

Opening Puerto Rico bank accounts is part of establishing genuine residency. Having local banking activity — regular transactions, accounts that show you're living your financial life here — is part of the documentation that supports your closer-connection test. Major banks operating in Puerto Rico include Popular (Banco Popular), FirstBank, and Oriental Bank.