The Long Game Moving to Puerto Rico & the Tax Benefits (with Wes Gray)
Nov 21, 2025
Wes Gray, a financial expert with years of experience living in Puerto Rico, shares invaluable insights on the benefits of relocating under Act 60. He breaks down the requirements for bona fide residency, revealing how to enjoy 0% capital gains on post-move earnings while navigating complex tax implications. Their discussion also covers lifestyle trade-offs, practical considerations for moving, and why the 4% export services tax might make sense for high earners. Wes emphasizes the importance of assessing personal situations before making such a significant shift.
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Act 60’s Two Core Tax Benefits
- Puerto Rico's Act 60 offers two powerful tax benefits: 0% capital gains for bona fide residents and 4% tax for exported service income.
- These benefits apply when capital gains and service income are properly sourced to Puerto Rico under IRS rules.
Establish Bona Fide Residency Properly
- Establish bona fide residency by living in Puerto Rico at least 183 days and making it your real tax home and community.
- Don’t treat it as a split lifestyle; kids, spouse, and community ties should be based in Puerto Rico to qualify.
Seasonal Residency Strategy
- Many people treat Puerto Rico as a seasonal home, living December–May and leaving for summer/hurricane season.
- This pattern can still qualify if bona fide residency and community ties are maintained.