3 Common Mistakes That Can Kill Your Act 60 Approval
- Alexis Chitwood

- Aug 10
- 2 min read
Discover the top mistakes that can derail your Act 60 application — and why fixing them after the fact can cost far more than preventing them.
You’ve decided Puerto Rico’s Act 60 is right for you.
You’ve done your research, run the numbers, and maybe even scoped out your dream neighborhood.
But here’s the hard truth: Act 60 benefits don’t mean a thing if your application is flawed.
One small oversight can cost you approval — or worse, cause problems years down the road when you least expect it.
We’ve helped fix these mistakes for clients who came to us after other firms got it wrong.
Here are three of the biggest offenders.
Mistake #1: Incomplete Decree Language
Your decree isn’t just a formality — it’s the foundation for your tax benefits.
If it doesn’t accurately reflect all of your current and potential business activities, you could unintentionally block yourself from future revenue streams.
This is one of the most common errors we see from applications that didn’t go through a thorough review process.
Mistake #2: Missed Municipal Registration
Act 60 is a Puerto Rico program — which means municipal-level requirements matter.
Failing to complete the right local filings can delay your approval or jeopardize compliance later on.
Many applicants don’t even realize these requirements exist until it’s too late.
Mistake #3: Weak Residency Documentation
Act 60 residency requirements are specific — and the IRS has been increasing its scrutiny.
If your proof isn’t airtight, you could face challenges even after your decree is approved.
We’ve seen cases where incomplete residency documentation created serious tax exposure years later.
The Bottom Line
These mistakes aren’t rare — they happen to smart, successful people who’ve already done their homework.
The difference is whether you have the right team protecting you from the start.
Don’t gamble with your decree.
We’ve helped over 100 Act 60 residents protect their benefits with a 98% approval rate.
If you’re ready to safeguard your application and maximize your advantages, book your confidential strategy call today.

Comments