Puerto Rico Audits Act 22 Tax Grants

The government is reviewing valid grants that exempt wealthy investors from taxes on interest and dividends.

Updated on Nov. 10, 2026 in Taxes

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Puerto Rico's government is auditing valid tax grants issued under Act 22, a 2012 incentive that exempts wealthy individual investors from taxes on interest and dividends. The review checks whether grantees meet annual reporting requirements, and officials are starting from scratch in examining all valid grants.

Why it matters

Act 22 was enacted to attract wealthy investors to the island, and the audit tests whether beneficiaries are meeting the residency and physical presence requirements tied to the incentive. The Act has since been amended, and the review aims to confirm that current grant holders remain compliant.

The audit covers every valid Act 22 grant issued since the incentive was enacted in 2012, and checks compliance with annual reporting requirements. The source does not disclose the number of grants under review or any findings to date.

The players

Puerto Rico Department of Economic Development and Commerce

The Puerto Rico government agency responsible for economic development and business incentive programs on the island, including oversight of Act 22 grants.

Patricia Cañellas Hernández

Director of the Office of Incentives for Businesses at the Puerto Rico Department of Economic Development and Commerce, overseeing the review of Act 22 grants.

The details

Patricia Cañellas Hernández, director of the Office of Incentives for Businesses at the Puerto Rico Department of Economic Development and Commerce, announced the review on Tuesday, November 10, 2026. The government is reviewing all valid grants from the beginning rather than only recent ones.

2012: Act 22 tax incentive is enacted.
Tuesday, November 10, 2026: Government announces the audit of Act 22 grants.

Policy Context

The review of Act 22, enacted in 2012 to draw wealthy investors to Puerto Rico, examines whether grantees still meet the residency and physical presence requirements the program set. Because the incentive has been amended since its creation, the audit also tests how the original terms are being applied today.

Investors holding Act 22 grants must keep meeting annual reporting and residency requirements, or risk losing the tax exemption on interest and dividends. Anyone considering relocating to Puerto Rico for similar tax treatment should review the program's current conditions before making decisions.

The takeaway

Tax incentives for wealthy investors depend on ongoing compliance, not just initial approval. Investors should track annual reporting obligations and residency rules tied to any grant they hold.