Chapter Six

Applying for Your Decree

You've run the math. You've talked to the advisors. You've booked the trip. Now comes the part where you make it official: applying for your Act 60 decree.

The decree is a legal contract between you and the government of Puerto Rico. It specifies the tax benefits you're entitled to, the conditions you must maintain, and the duration of your grant. Getting it right from the start matters more than almost anything else in this process.

Step 1: Before You Apply

Before you submit a single form, you need to have established — or be in the process of establishing — genuine Puerto Rico residency. This means:

You have leased or purchased a Puerto Rico property that serves as your principal residence

You are physically present in Puerto Rico (planning to meet the 183-day requirement for the current or upcoming year)

You were not a Puerto Rico resident during the fixed ten-tax-year statutory window preceding July 1, 2019; have counsel confirm how that eligibility rule applies to your facts

You have a qualified Act 60 attorney engaged to guide the process

Step 2: The Application

Act 60 applications are filed through the DDEC's online Incentives Portal (incentives.ddec.pr.gov). Your attorney will typically handle the actual filing, but it's worth understanding what goes into it:

Completed online Individual Resident Investor application through the DDEC Incentives Portal; have counsel confirm the current filing designation and supporting documents

Proof of identity — valid passport and Social Security card

Proof of Puerto Rico residency — lease agreement or property deed, utility bills

Criminal background check from a government agency

Financial information demonstrating you are a qualifying investor

Application fee (non-refundable — confirm current amount with your attorney)

Step 3: Processing Timeline

Once submitted, applications are reviewed by the DDEC's Office of Incentives. Processing typically takes 3 to 6 months for straightforward applications, though complex cases can take longer. Your attorney can often provide status updates through the portal.

Critically: the date you submit your application is what matters for grandfathering purposes — not the date you receive your decree. This is especially important given recent changes to the program. If you're considering applying, the time to act is now, not after you've spent another six months deliberating.

⚠ Important Notice

The December 31, 2026 deadline for applying under existing terms is a real and important date. Applications submitted after this date face different terms, including a 4% passive income tax rate instead of the potential 0%. The application date — not the approval date — is what locks in your treatment. Consult your attorney well in advance of any deadline.

Step 4: Receiving Your Decree

When your application is approved, you receive a tax decree — a formal legal document that outlines your benefits, your obligations, and the term of your grant. Read it carefully. Have your attorney walk you through every provision.

Your decree is a contract. Once signed, it's binding on both you and the Puerto Rico government. The provisions of your decree are constitutionally protected, meaning that even if the law changes, your decree remains in force as long as you comply with its terms. That protection is extraordinarily valuable.

After the Decree: What Happens Next

Getting the decree is the beginning, not the end. From the date of your decree:

You must purchase Puerto Rico real property within two years for use as your principal residence

You must make your first annual $10,000 charitable donation

You must file your first annual compliance report by the deadline tied to your Puerto Rico income-tax filing schedule; confirm the exact date with your CPA and DDEC

You must begin — if you haven't already — meeting the 183-day presence requirement

Your attorney and CPA should set up a compliance calendar for you immediately. If they don't offer this proactively, ask for it.

Professional Referrals

The Dorado Beach Insider directory at doradobeachinsider.com includes Act 60 attorneys with direct experience filing applications with the DDEC. These are professionals our community knows and trusts.

Application requirements, fees, and timelines change. This chapter reflects our best understanding of the process as of publication. Always verify current requirements with a qualified Act 60 attorney and the DDEC directly.