Puerto Rico's new Incentives Code, Act No. 60, is now in
effect.
The Incentives Code effectively consolidates all tax incentives
available for different economic activities in a single code. With
its enactment on July 1, 2019, the Private Equity Funds Act, Act
No. 185-2014, was repealed.
Act 185 granted special Puerto Rico tax treatment to qualifying
funds meeting certain requirements, as well as to their investors.
The core requirement was that qualifying funds invested in
securities which were not offered at public securities exchange
markets in the United States or any foreign country. For a detailed
discussion of Act 185 and its benefits, please see our alert Private equity and hedge funds in Puerto Rico
– a welcoming environment in the Caribbean.
