"Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands.” - Judge Learned Hand

How the U.S. Gold Card Visa Program Could Attract More Act 60 Investors to Puerto Rico

A new investment visa program, commonly referred to as the “Gold Card,” is poised to reshape the landscape for high-net-worth individuals seeking U.S. residency. In late February 2025, President Trump mentioned that he is planning to institute this “Gold Card” policy. This initiative, which requires a $5 million investment to get permanent US residency, presents a potential opportunity for more investors to establish residency in Puerto Rico and qualify for Act 60 tax benefits.

Key Features of the Gold Card Visa

  • $5 Million Investment Requirement – Unlike the existing EB-5 program, which requires $900,000 to $1.8 million in investments tied to job creation, the Gold Card offers a straightforward route to permanent residency with a single lump-sum payment to the U.S. government.
  • Pathway to Citizenship – Gold Card holders will have a pathway to full U.S. citizenship, potentially making it an attractive option for global investors looking for long-term stability.
  • No Overseas Taxation – Unlike other visa holders and U.S. residents, Gold Card recipients may be exempt from U.S. taxes on overseas income, a crucial benefit for international investors.

How This Relates to Act 60

Puerto Rico’s Act 60 tax incentive program has been a major draw for investors seeking significant tax advantages while maintaining U.S. residency. The Gold Card visa could potentially create a new pathway for individuals who want to relocate to Puerto Rico and qualify for Act 60 benefits.

1. A Potential New Gateway for Act 60 Residency

If structured correctly, the Gold Card visa could provide a streamlined path for high-net-worth individuals to move to Puerto Rico, establish residency, and take advantage of Act 60’s favorable tax treatment. This could bring a new wave of investors, entrepreneurs, and business owners to the island, further strengthening its economy.

2. Increased Global Interest in Puerto Rico

With the Gold Card offering a simplified residency process, Puerto Rico could see an influx of investors who were previously deterred by U.S. immigration complexities. This could position the island as an even more attractive destination for those seeking both tax incentives and a favorable business environment.

3. Uncertain Policy Interactions

There are still many unknowns about how the Gold Card visa will interact with Act 60 residency requirements. However, if Gold Card holders are able to establish bona fide residency in Puerto Rico, they may be eligible for the same tax benefits that have attracted many entrepreneurs and investors to the island.

What This Means for the Future of Act 60

If the Gold Card visa aligns with Act 60 residency requirements, it could serve as a powerful tool for attracting more high-net-worth individuals to Puerto Rico. This could lead to increased investment in the local economy, further solidifying Puerto Rico’s status as a premier tax-friendly jurisdiction.

While there are still unanswered questions about the specifics of the Gold Card visa, its introduction could present a new opportunity for Act 60 growth. Those interested in leveraging this potential pathway should stay informed as more details emerge and consult with tax and legal experts to understand how the program might fit into their overall financial strategy.

Copyright© 2024 Rachel Farris CPA | All Right Reserved

No Rendering of Advice
The information contained within this website is provided for informational purposes only and is not intended to substitute for obtaining accounting, tax, or financial advice from a professional accountant. Presentation of the information via the Internet is not intended to create, and receipt does not constitute, an accountant-client relationship. Internet subscribers, users and online readers are advised not to act upon this information without seeking the service of a professional accountant. Any U.S. federal tax advice contained in this website is not intended to be used for the purpose of avoiding penalties under U.S. federal tax law.

Accuracy of Information
While we use reasonable efforts to furnish accurate and up-to-date information, we do not warrant that any information contained in or made available through this website is accurate, complete, reliable, current or error-free. We assume no liability or responsibility for any errors or omissions in the content of this website or such other materials or communications.