House extends tax-incentive law and raises rate for new residents to 4% starting 2026

San Juan — The House of Representatives approved Project de la Cámara 505 on April 28, 2025, extending the incentives in Law 60 (formerly Law 22) and increasing the contribution rate on capital gains, interest and dividends for incoming residents to 4% beginning in 2026. The final recorded vote was 46 yes, 3 no.

Representative Charbonier Chinea, presenting the measure on behalf of the committee, said the extension provides legal certainty for investors and residents and cited government studies estimating job creation and revenue gains tied to the incentives. The presenter referenced the Assembly Legislative Budget Office report (Informe 2025-R-91) and department estimates that the extension supported creation of jobs and contributed to tax receipts; the presenter said the Office of Legislative Budget projected roughly $279 million in revenue between 2037 and 2040 from the change in the regime.

Opponents argued the 4% rate remains preferential compared with global norms and urged a higher levy. Representative Lebrón Robles called the 4% figure “completamente preferencial,” arguing that a 10% rate would better align Puerto Rico with international tax trends and yield more revenue. The independentista delegation stated it would vote against the bill.

The bill as approved extends the incentives’ term (the transcript records the extension to 2055 for the measure as presented) and sets the new 4% rate for specified categories (capital gains, interest and dividends) for newly qualifying resident investors after the change takes effect.

Formal action: The House approved Project de la Cámara 505. Final recorded tally: 46 yes, 3 no.