Puerto Rico has seen a sustained wave of new residents relocate to the island over the past decade, driven largely by Act 60 tax incentives — making the influx one of the most consequential, and most contested, economic stories on the island today. Home prices rose 21.5% island-wide year-over-year by early 2025, even as debate grows over how relocation incentives like Act 60 affect longtime residents. Legal status, schools and healthcare access, tax obligations, and the housing market all look different once you’re moving in rather than visiting.
Legal Status
U.S. citizens can move to Puerto Rico exactly as they’d move to another state – no visa or immigration process. Non-citizens follow standard U.S. immigration rules.
Schools and Healthcare
Private and bilingual schools are concentrated in Metro and Dorado; public healthcare and school quality vary significantly by municipality.
Taxes
Even without Act 60, Puerto Rico residents typically don’t pay U.S. federal income tax on PR-sourced income – but they do pay Puerto Rico income tax (which is often quite high) and remain subject to Social Security/Medicare.
Housing Market
Popular relocation hubs include Condado, Dorado, Palmas del Mar, Rincón, and Old San Juan. Puerto Rico both rentals and real estate purchases have risen sharply since Act 60 relocation accelerated: island-wide, median home prices rose roughly 21.5% year-over-year by early 2025, and in the markets most popular with Act 60 decree holders – Dorado, Condado, and Palmas del Mar – prices have appreciated an estimated 38% to 65% since 2020. Between 2021 and 2022 alone, an estimated 27,000 people relocated to the island, a wave most believe is directly to Act 60. Because the income from those relocating is typically earned remotely from mainland employers or investments rather than from local jobs, that spending power translates into rising home prices without a matching rise in local wages – squeezing residents whose income is set by the island’s own, lower-wage economy.
The Debate
Supporters argue Act 60 brings capital, spending, and high-skill residents to an island that lost population for over a decade. Critics argue it prioritizes wealthy newcomers’ tax savings over affordable housing and cultural preservation for the Puerto Ricans already here. Both claims have real evidence behind them – read five expert opinions on this topic for a deeper understanding.