If you are moving under Act 60's Chapter 2 — the individual resident investor decree — Puerto Rico law requires you to purchase a residential property within two years of your decree's effective date. Where you buy shapes your daily life, your family's experience, and in some cases the strength of your bona fide residency position. This guide compares the four areas where most decree holders settle.
Act 60's Chapter 2 decree grants a 4% income tax rate on eligible business income and 0% tax on interest, dividends, and long-term capital gains through 2055. But the benefit comes with obligations: you must establish bona fide residency, spend 183+ days per year on the island, and — critically for Chapter 2 applicants — acquire a permanent residence in Puerto Rico. For a full breakdown of the decree mechanics, see our complete guide to Act 60.
The Chapter 2 Property Purchase Requirement
Under Act 60 Chapter 2, individual tax decree holders must purchase residential real property in Puerto Rico within two years of the decree's issuance date. The property must serve as your primary residence. This is not a formality — it is a contractual obligation embedded in your decree, and failure to comply can jeopardize your tax benefits.
The requirement applies specifically to Chapter 2 (individual investor) decrees. Chapter 3 (business services) decree holders do not face the same mandate, though most still purchase property to strengthen their bona fide residency position. The purchase can be a house, condominium, or townhouse — the statute does not prescribe a property type, only that it be residential real property intended as your permanent home.
For families, the two-year window creates a natural decision timeline. Most of our client families rent for six to twelve months while exploring neighborhoods, then close on a purchase within the first year — well ahead of the deadline. The advantage of this approach is that you experience the area before committing, and you avoid rushing into a transaction under deadline pressure.
Important: Sesenta Global are advisors, not brokers. We do not maintain property listings, accept referral fees, or participate in any real estate transaction. Our role is to help you understand how location decisions interact with your decree obligations, your tax position, and your family's lifestyle needs. We introduce clients to licensed Puerto Rico real estate professionals when they are ready to buy — with no financial arrangement on our end.
Where Decree Holders Buy: Four Areas Compared
Puerto Rico offers remarkable geographic diversity within a three-hour drive end to end. The four areas below account for the vast majority of Chapter 2 residential purchases. Each attracts a different profile of decree holder, and understanding the trade-offs early saves months of searching.
Dorado
Dorado is where most Chapter 2 families begin their search, and for good reason. Twenty-five minutes west of San Juan on the main highway, it offers gated communities with private security, championship golf courses (including the famed East Course at Dorado Beach), private beach clubs, and a corridor of international-caliber schools. Communities like Dorado Beach East, Sabanera, and Plantation Village combine resort-level amenities with year-round residential living. The infrastructure is the most developed on the island for expatriate families, and the concentration of decree holders means your neighbors understand the relocation journey.
Condado & Old San Juan
For executives who want urban density and walkability, Condado is the natural choice. This oceanfront district in San Juan offers high-rise condominiums with Atlantic views, hotel-grade amenities, and a restaurant scene that rivals any major US city. You can walk to the beach, to dinner, to the gym — a lifestyle that mirrors Miami's Brickell or San Francisco's Marina district at a fraction of the cost. Old San Juan, a UNESCO World Heritage site, offers historic colonial properties for those drawn to 16th-century architecture and cobblestone streets. The trade-off: less space, no yard, and limited school options within walking distance. This area suits single decree holders, couples, and executives who travel frequently.
Palmas del Mar
Palmas del Mar is a self-contained resort community on the southeast coast in Humacao — about an hour from San Juan. It is, in many ways, a town within a gate. The community includes a full-service marina, an equestrian center, two championship golf courses, a tennis club, over 20 restaurants, a grocery store, and a school inside the gates (Palmas Academy, Pre-K through 12th grade). For families who want everything within a five-minute golf-cart ride, Palmas delivers a level of convenience that no other Puerto Rico location matches. The price point is also the most accessible of the four areas profiled here. The trade-off is distance: you are further from San Juan's business district, international airport, and specialist medical care.
Rincón
Rincón is the answer to a different question. If your priority is not golf courses or gated security but rather world-class surf, sunset views, and a laid-back community where everyone knows your name, the west coast is home. Rincón has been a magnet for American surfers since the 1960s, and the tight-knit expatriate community means you will find English-speaking neighbors, organic markets, yoga studios, and a cultural rhythm that feels more like a California beach town than a Caribbean resort. Property here is the most affordable of the four areas. The trade-off: Rincón is a two-and-a-half-hour drive from San Juan, schools are limited, and the infrastructure is rustic. This area suits decree holders whose work is location-independent and whose children are grown or homeschooled.
Matching the Area to Your Decree Strategy
The residential property requirement is not just about finding a house you like. Your choice of location reinforces your bona fide residency position — the IRS evaluates where you live, where your children attend school, where you bank, and where your community ties are rooted. A property in a gated Dorado community with school enrollment and local club membership creates a stronger residency footprint than a condo you visit occasionally.
For Chapter 2 decree holders with school-age children, Dorado remains the most common starting point. The combination of international school access, security, and proximity to San Juan's business infrastructure creates the fewest compromises. Executives who travel weekly tend to prefer Condado for its airport access and urban convenience. Retirees and location-independent professionals often find Palmas del Mar or Rincón better suited to their pace and budget.
None of these decisions should be made in isolation. Your property purchase timeline must align with your decree application, your entity structuring, and your move logistics. We coordinate all of these moving parts as part of our advisory process — so that when you are ready to buy, you know exactly where, why, and how the purchase fits your tax position.
Next Steps
If you are evaluating Act 60 and have not yet read our comprehensive overview, start with the complete guide to Act 60 tax incentives. It covers the decree types, the application process, government fees, and the December 2026 deadline that affects capital gains treatment for new applicants.
When you are ready to discuss your specific situation — your income sources, your family's needs, your timeline — schedule a private consultation. We will walk through your options, assess whether Chapter 2 or Chapter 3 fits your circumstances, and build a relocation plan that includes the property purchase strategy from day one.