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.
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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?
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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).
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