Make work and household decisions first
A workable move starts with the life you will actually lead in Puerto Rico. Before choosing a date, agree where your work will be performed, what happens to a mainland home and when each household member will move. This page focuses on U.S. citizens moving from the mainland; others should confirm their U.S. immigration status and work permission separately.
| Decision | Ask before committing | Evidence |
|---|---|---|
| Employment | Can I work from Puerto Rico, and how will payroll and mainland workdays be handled? | Written employer agreement and work-location records. |
| Housing | What is included, and what happens if the move date changes? | Lease, occupancy dates and deposit terms. |
| Household | Will a partner or children remain on the mainland, and why? | A separate timeline for each person. |
| Healthcare | Does the plan cover the actual local doctors, hospitals and medicines I need? | Provider-network confirmation and coverage dates. |
These facts will also matter to a later residence assessment. Review the three federal bona fide residence tests before assuming that arrival alone produces a tax benefit.
Official reference: IRS Publication 570: residence, income sources and filings.
First month: make the records match daily life
- Keep the lease, utility setup and actual occupancy date together.
- Confirm a reliable internet connection and backup arrangement at the specific home.
- Record each trip, including same-day travel, and where work is performed.
- Check the current local requirements for driving, vehicle registration and insurance before relying on mainland arrangements.
- Agree how healthcare, prescriptions and emergency contacts will work locally.
- Update relevant addresses and account details accurately; keep confirmation of each change.
An address update is supporting administration, not proof by itself of tax residence. If your working pattern or family plan changes, record the change when it happens.
Days 31–90: review the household and business together
Check whether your actual routine matches the plan. Are most work duties performed where expected? Is the mainland home still available? Has the family move been delayed? Ask your adviser whether those facts affect the tax-home, closer-connection or move-year analysis.
If considering Act 60, keep the application and decree work separate from the household move. Review eligible activities, income categories, application timing, fees and recurring obligations before relying on an incentive in your budget. A decree does not replace the federal residence tests.
Official reference: IRS Publication 570: residence, income sources and filings · DDEC: incentive programmes and application information.
Budget without relying on an unconfirmed tax saving
Replace the figures with actual housing, transport, insurance and utility quotes. List refundable deposits separately. Add business setup, incentive application/compliance costs, tax payments and a home purchase if applicable; they are outside this example.
Ask the landlord or seller about water storage, backup power and building procedures during interruptions. Test what equipment the backup can actually run, who maintains it and which costs you must pay.
Your next step: make the arrival calendar
Choose three priority actions, assign owners and record dependencies. Keep a separate filing calendar for Puerto Rico, federal and former-state obligations. If the move changes bona fide residence and worldwide gross income is more than US$75,000, assess Form 8898 under its detailed instructions; it is a separate reporting process.
Official reference: IRS: Form 8898 instructions.
Use the downloadable worksheet to connect the dates and records. Before a major investment sale or business change, work through the income-source questions rather than assuming that all post-move income has the same treatment.
General preparation information. Examples are hypothetical. Official requirements, your facts and any applicable decree control the result; obtain qualified advice for personal immigration, tax and filing decisions.
Your next step
Prepare your arrival plan
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