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Puerto Rico (PR), a U.S. territory, applies a Sales and Use Tax (IVU — impuesto sobre ventas y uso) to most purchases, including precious metals. The combined rate is 11.5%, one of the highest consumption tax rates in any U.S. jurisdiction, and no exemption exists for investment-grade bullion.
Puerto Rico operates under a distinct tax framework from U.S. states. Bona fide residents who qualify under the territory's Act 60 tax incentive program may pay 0% on capital gains realized after establishing residency, subject to strict eligibility requirements and IRS compliance.
Precious metals such as gold and silver are classified as collectibles under U.S. federal tax law. Profits realized when selling investment metals may therefore be subject to federal capital gains tax, with a maximum rate of 28%, depending on income level and holding period.
Capital gains tax generally applies when metals are sold for fiat currency or exchanged for goods and services. No tax is due simply for purchasing or holding bullion.
For most Puerto Rico residents, the standard federal capital gains tax rules apply. U.S. citizens living in Puerto Rico who do not qualify as bona fide residents under Act 60 remain fully subject to federal capital gains tax on precious metals sales.
For qualifying bona fide residents under Act 60: Puerto Rico's tax incentive framework provides significant capital gains benefits for investors who genuinely relocate. The exemption applies to gains accrued after the individual becomes a bona fide resident of Puerto Rico — gains realized on assets acquired before the move remain subject to U.S. federal tax. The program is available to individuals who become residents on or before December 31, 2035.
Key eligibility requirements include: physical presence in Puerto Rico for at least 183 days per year, purchase of a residential property within the first two years, an annual donation of $10,000 to local nonprofits, and no prior Puerto Rico residency in the preceding 10 years. A formal tax decree must be obtained from Puerto Rico's DDEC. The IRS is actively scrutinizing Act 60 compliance — bona fide residency requires genuine physical presence, a Puerto Rico tax home, and a closer connection to Puerto Rico than to the United States.
Given the complexity of these rules, investors considering Act 60 should work with qualified tax professionals experienced in both U.S. federal and Puerto Rico tax law.
Puerto Rico's Sales and Use Tax (IVU) applies to the sale of tangible personal property at a combined rate of 11.5% — 10.5% allocated to the Commonwealth and 1% to municipalities.
There is no exemption from the IVU on the sale of precious metals in Puerto Rico. Investment-grade gold, silver, platinum, and palladium bars, coins, and rounds are all subject to the full 11.5% rate when purchased within the territory. Collectible coins, jewelry, and decorative precious metal items are similarly taxable.
Investors wishing to purchase precious metals without sales tax should consider purchasing from dealers in a U.S. state that offers a bullion exemption, or from international sources.
Puerto Rico presents a mixed picture. For standard investors purchasing precious metals locally, the 11.5% sales tax significantly increases acquisition costs — making it one of the least favorable jurisdictions in the United States for buying physical bullion.
However, for investors willing to genuinely relocate and qualify under Act 60, Puerto Rico offers a unique opportunity: 0% capital gains tax on precious metals and other investments acquired after establishing bona fide residency. This benefit — unavailable anywhere in the 50 states — can be highly significant for high-net-worth investors. It comes with substantial compliance obligations and IRS scrutiny, and it applies only to post-move gains.