To my knowledge, non-U.S. persons are eligible for OZ tax benefits, but only under U.S. law, so that'd have to be reconciled with treatment in their home jurisdiction.
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Who is eligible for the benefits of Opportunity Zone investments?
Is this a U.S. citizen-only tax incentive or can permanent residents and long-term visa holders also enjoy Opportunity Zone benefits, as long as the basic requirements are met?
Answers
As far as I can tell, there is no citizenship limitation, just a U.S. taxpayer limitation.
The benefits are available to any U.S. taxpayer with gain from the sale of a U.S. investment that would otherwise be taxable in the U.S.
The law refers to "taxpayers", so anyone who is obligated to pay taxes to the U.S. Treasury would eligible for the benefits of Opportunity Zone investments.
It’s a deferral of U.S. tax, so it applies to anyone who owes U.S. taxes.
Any taxpayer subject to federal income tax on capital gains is eligible as long as the required elections and investment are made.
The benefit is available to resident aliens (permanent residents and substantially present individuals). It also is available to non-resident aliens, but there is an open question as to whether the availability for non-resident aliens is limited to capital gains that would be subject to U.S. tax (e.g., gain from the sale of real property). I personally believe that a non-resident alien can roll untaxed gain into a QOF. However, to answer your question, permanent residents and long-term visa holders can enjoy Opportunity Zone benefits, as long as the basic requirements are met.
Any U.S. taxpayer with eligible capital gain can invest.
Anyone subject to U.S. taxation is eligible to reinvest recently realized capital gains in a QOF.
Anyone with capital gains.
Permanent residents, and other U.S. tax residents, can certainly take advantage of the benefits. Non-residents with U.S. capital gains can also receive the QOZ tax benefits. Keep in mind that there are additional complications for non-residents involving FIRPTA and tax treaties that may impact the timing of an investment in a QOF, and the value of the tax benefits. Be sure to consult an expert with knowledge of the applicable tax treaty.
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