Puerto Rico FAQ's

FAQ: Puerto Rico, Act 60 Tourism Tax Incentives, and Luxvinea Capital’s Services:

About Puerto Rico & Opportunity Zones

Why invest in Puerto Rico’s real estate market?

Puerto Rico offers unique tax incentives, a strong tourism industry, and many federally designated Opportunity Zones. These factors combine to create attractive returns and long-term growth for both local and off-island investors.

What are Opportunity Zones and how do they benefit investors?

Opportunity Zones are special geographic areas where investors can receive federal tax benefits—including capital gains deferral and potential exclusion—when they reinvest in qualifying projects. Many of Puerto Rico’s prime tourism and development areas fall within these zones, allowing you to stack federal and local tax incentives.

Act 60 Tourism Tax Incentives

What is Act 60 and how does it help tourism projects?

Act 60, also known as the Puerto Rico Incentives Code, offers up to a 40% tax credit for eligible tourism developments with 7 units or more. This incentive helps reduce your net investment and improve project returns, whether for new construction or major renovations.

Who qualifies for Act 60 tourism tax credits?

Any investor, developer, or company developing a qualifying tourism property (such as hotels, guesthouses, or short-term rental complexes) in Puerto Rico may qualify. The project must meet minimum investment and unit requirements, and receive approval from the Puerto Rico Tourism Company.

Can I combine Act 60 with Opportunity Zone benefits?

Yes! If your project is in an Opportunity Zone, you can combine Act 60 tax credits with federal capital gains tax advantages for even greater financial impact.

How do I apply for Act 60 tourism incentives?

You’ll need to prepare a detailed proposal and submit it to the Puerto Rico Tourism Company before breaking ground. The process includes project review, approval, and ongoing compliance requirements.

Luxvinea Capital’s Services in Puerto Rico

What services does Luxvinea Capital offer in Puerto Rico?

We provide end-to-end support for real estate investors and developers, including:

Identifying eligible properties and Opportunity Zone sites
Deal analysis and financial modeling (including tax credit projections)
Structuring creative financing and partnerships
Guiding you through Act 60 application and compliance
Bulk disposition and acquisition of portfolios

Do you work with both small and large investors?

Yes! We support individual investors, local entrepreneurs, and large institutional firms. Our solutions are tailored to your project size and investment goals.

Can you share examples of successful projects in Puerto Rico?

Absolutely. We’ve helped small investors convert historic buildings in Old San Juan into boutique guesthouses using Act 60 credits, and guided large firms through multi-million-dollar resort developments leveraging both Act 60 and Opportunity Zone incentives. See our Case Studies for more details.

How do I get started with Luxvinea Capital?

Contact us for a confidential consultation. We’ll review your goals, identify the best opportunities, and outline a step-by-step plan to maximize your tax benefits and project returns in Puerto Rico.

Still have questions?