What are Opportunity Zones?

Codified in the TCJA of 2017, Opportunity Zones (OZs) have been designated in all 50 U.S. states and territories, creating incentives for U.S. taxpayers to invest in low-income communities.

These investments will serve to rehabilitate blighted real estate, create jobs, and assist local entrepreneurs with access to much needed capital.

While each of the 50 states were able to designate 25% of low-income census tracts as OZs, Puerto Rico was granted authority to designate over 95% of the territory as such.

Opportunity Zone Investing can provide U.S. taxpayers with two primary benefits:
I. Deferral of eligible gains until 12/21/26 if invested in a Qualified Opportunity Fund
II. Step-up in basis to fair market value of disposition of assets help 10 years or more, essentially eliminating capital gains tax on the OZ investment

Why Puerto Rico?

Puerto Rico is the largest Caribbean economy and is more populous that half of the 50 states. As a U.S. territory, Puerto Rico is an attractive tropical location for U.S. businesses. There are significant economic and tax incentives in place to attract investment in many priority industries, such as energy, tourism, housing, finance, and agriculture.

In addition, due to individual tax incentives, Puerto Rico is likely to become THE low-tax destination for U.S. retirees, remote workers, and others.