🇵🇷 Puerto Rico Offshore Banking
Intelligence Center

DDEC has issued a supplemental compliance guidance memo clarifying Act 60 export services decree holders must submit updated employment certification documentation by December 31, 2026 to maintain decree status for tax year 2027. Decree holders who fail to demonstrate the required annual good-faith resident employment thresholds risk administrative suspension pending review. OCIF has confirmed coordination with DDEC on enforcement timelines for International Financial Entities operating under dual Act 60 and IFE licensing structures.

Act 38-2026 implementation tracking indicates that the November 30, 2026 interim reporting deadline for newly licensed International Financial Entities is approaching, with OCIF staff confirming that late-filing penalties of up to $5,000 per business day are now enforceable under the updated statute. Approximately 14 IFEs granted provisional licenses in Q1 2026 are understood to be in the final stages of their compliance submissions. Financial institutions operating under US Federal oversight frameworks are reminded that FinCEN beneficial ownership reporting requirements run concurrently and are not superseded by Puerto Rico-level filings.

OCIF has posted a public alert (Aviso al Público) on its official portal about a security incident involving the agency's official telephone number, (787) 723-3131. Third parties may be misusing the number to make fraudulent communications. OCIF states that it will not contact any citizen to say their bank account has been compromised, and it urges the public to stay alert. Clients of Puerto Rico financial institutions, including those with cross-border accounts, should treat unsolicited calls claiming to come from OCIF about compromised accounts with caution. The fetched page does not state a publication date for the alert, and the page text is truncated after the start of OCIF's advice to the public. The summary covers only what is visible in the notice.

OCIF has issued new official communications regarding the implementation of the FIRE System reporting platform, a new Circular Letter, and specific guidance on the Q3-2026 filing period for all regulated sectors. All OCIF-regulated institutions, including International Financial Entities operating under Act 273, must access the Avisos al Público section of the OCIF portal to review the official documents and ensure timely compliance with the new reporting platform requirements and associated Q3-2026 submission deadlines.

Act 38-2026 tracking intensifies as the final Q4 2026 window closes for new applicants seeking the legacy 0% preferential tax rate under the Resident Individual Investor program prior to the December 31, 2026 deadline. Existing Act 60 decree holders prepare annual compliance documentation ahead of standard DDEC reporting extension deadlines, confirming bona fide residency, $10,000 mandatory charitable contributions, and local real estate ownership compliance.

DDEC reminds Act 60 Chapter 3 Export Services decree holders that annual compliance reporting requires proof of Puerto Rico bona fide operational substance, minimum employee thresholds for businesses exceeding $3 million in revenue, and Puerto Rico-sourced export revenue qualification. Grantees are advised to verify that annual reports filed via the Single Business Portal account for all applicable 4% preferential corporate rate conditions established in their tax decree contracts.

OCIF supervisory standards require licensed International Financial Entities to complete annual compliance attestations regarding beneficial ownership structures in accordance with federal FinCEN directives. Licensees are reminded that failure to maintain compliant BSA/AML documentation exposes financial entities to administrative penalties under OCIF circular guidelines.

October 1, 2026 marks the start of the final 90-day application period under Act 38-2026 to secure legacy 0% tax treatment on dividends, interest, and post-residency capital gains for new Resident Individual Investor decree applicants. Applications received on or after January 1, 2027 will automatically be subject to the new 4% tax rate mandated under Act 38-2026, while program eligibility remains extended through December 31, 2055.

September 30, 2026 marks the end of Q3 2026 for fiscal tax accounting, prompting legal advisors to urge prospective Act 60 applicants to initiate decree applications immediately. Due to multi-month processing times at DDEC, filings initiated before end of Q3 ensure adequate lead time to meet the December 31, 2026 statutory cutoff for 0% capital gains treatment under Act 38-2026.

DDEC reaffirms that existing Act 60 decree holders are protected under grandfathering clauses in Act 38-2026, preserving original tax decree contractual terms through their current tenure. New applicants filing prior to December 31, 2026 lock in 0% rates through 2035, while those filing from January 1, 2027 transition to the 4% rate with decree eligibility extended to 2055.

Act 38-2026 planning intensifies as practitioners report increased application volume on DDEC's Single Business Portal from U.S. citizens seeking tax residency in Puerto Rico. Applicants filing before December 31, 2026 preserve the 0% rate on capital gains and interest, while adhering to updated eligibility rules requiring no PR residency in the 6 years prior to relocation.

DDEC guidelines under Act 38-2026 confirm that primary real estate acquired by Act 60 Resident Individual Investors must be held directly by the individual or via a trust structure, eliminating entity-level LLC holding structures for primary residency qualification. Existing decree holders evaluating property transfers are advised to consult local tax counsel to maintain compliance.

Act 38-2026 compliance updates highlight the statutory extension of the Resident Individual Investor program through December 31, 2055. While post-2026 applicants face a 4% tax rate on capital gains and dividends, current applicants filing before year-end 2026 retain the legacy 0% rate, providing a clear regulatory incentive for near-term filings.

DDEC enforces annual compliance monitoring for Act 60 Individual Resident Investors, verifying that mandatory $10,000 annual charitable contributions are split equally ($5,000 to DDEC-certified non-profits and $5,000 to local PR non-profits). Compliance proof must be submitted alongside annual reports to prevent administrative decree suspension.

DDEC clarifies that Act 60 decree holders who fail to file required annual reports or fulfill statutory charitable and employment conditions risk administrative proceedings leading to decree revocation. Decree holders are urged to verify that all SURI filing receipts and supporting documents are submitted within statutory timeframes.

Act 60 Individual Resident Investors are reminded that maintaining bona fide residency requires satisfying the IRC § 933 presence test (typically 183 days physical presence in Puerto Rico annually), establishing a tax home in PR, and proving no closer connection to the U.S. mainland or foreign countries.

With exactly 106 days remaining until the December 31, 2026 deadline established by Act 38-2026, advisors report heightened activity among prospective applicants. Filing prior to year-end locks in the 0% rate on dividends, interest, and capital gains for the duration of the decree, avoiding the 4% rate applying to 2027 applicants.

With 107 days remaining until the December 31, 2026 statutory cutoff under Act 38-2026, DDEC reaffirms that all Act 60 applications postmarked or submitted via the digital portal on or before December 31 will qualify for grandfathered 0% preferential tax treatment. New applicants after this date transition to the 4% regime.

DDEC reiterates that Act 60 export services grantees (Chapter 2) must demonstrate bona fide business operations in Puerto Rico, maintaining local payroll and office presence where required to retain the 4% preferential corporate tax rate and 100% dividend exemption.

DDEC confirms that Act 60 Individual Resident Investor decree holders must maintain proof of primary residence ownership (held directly or through a trust as updated by Act 38-2026) within 2 years of establishing PR residency to satisfy core decree conditions.

DDEC and OCIF perform distinct regulatory roles in Puerto Rico: DDEC administers tax incentive decree contracts under Act 60 via SURI, while OCIF licenses and supervises financial institutions under Act 273. Act 60 decree holders operating financial service entities must fulfill separate reporting filings with each agency.

Act 38-2026 provisions specifically target Act 60 Resident Individual Investor decree terms, updating eligibility criteria (requiring 6 years of non-PR residency prior to moving) while setting the December 31, 2026 deadline to secure legacy 0% rates before the post-2026 4% regime takes effect.

OCIF confirms that International Financial Entities licensed in Puerto Rico remain subject to beneficial ownership disclosure standards under federal law. Institutions operate under uniform U.S. BSA/AML guidelines enforced through OCIF field examinations.

DDEC confirms annual reporting compliance procedures for Act 60 Export Services entities, noting that failure to maintain qualifying local payroll or operational substance may result in decree modification or loss of the 4% corporate tax incentive rate.

Tax advisors emphasize that the December 31, 2026 deadline under Act 38-2026 represents a firm statutory transition for new applicants. Prospective resident investors are encouraged to finalize application materials early in Q4 to ensure receipt confirmation from DDEC before year-end.

With 115 days remaining before the December 31, 2026 deadline established by Act 38-2026, DDEC portal activity remains elevated. Decree holders are reminded that annual compliance reports must verify local resident certificate documentation and satisfy mandatory charitable contribution obligations.

With approximately 116 days remaining in 2026, DDEC reiterates that Act 60 Individual Resident Investor decree holders must maintain proof of required $10,000 charitable donations made during each tax year to support annual compliance filings.