Puerto Rico Act 60 & Dual-Sovereign Structuring

Dual-Sovereign Structuring

An intricate approach combines federal Opportunity Zone capital gains exclusions with Puerto Rico’s Act 60 (providing corporate tax rates as minimal as 4% and dividend exemptions).

IRS Scrutiny & Warnings

Nevertheless, cautions exist concerning rigorous IRS examination regarding “Residency Arbitrage” and the error of attempting to invest non-eligible capital gains originating from Puerto Rico into a federal QOF.