Ask A Question

How can I save on my taxes by investing in an Opportunity Zone in Puerto Rico?

I noticed most of the island is an OZ however I thought they didn’t even pay federal taxes?


Answers
  • Matthew Rappaport
    September 13, 2022

    You don't pay federal taxes if you're a bona fide resident of Puerto Rico, which is a bit difficult to establish. But if you invest in Puerto Rico as a non-resident, you can still get the OZ benefits if you meet all your compliance requirements.

  • Marko Belej
    September 12, 2022

    Assuming that you are a US taxpayer, your investment in a qualified opportunity fund (QOF) operating in Puerto Rico generally will still permit you to (i) defer for US income tax purposes gains that you otherwise would have recognized and are investing in the QOF and (ii) exclude gain from US taxable income that you recognize from a disposition that occurs after holding your interest in the QOF for at least 10 years. The investment may be made in Puerto Rico but US income tax law still applies to you (again, assuming that you are a US taxpayer).

  • DISCLAIMER: 

    the information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal and financial experts prior to participating in any aspect relating to Opportunity Zones. Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public; do not include confidential information in your question.