The U.S. Territory of Puerto Rico is experiencing a resurgence of interest among crypto buyers drawn by the established truth that it does not cost federal taxes and that eligible buyers do not pay duties on their valuable crypto properties. The territory’s recognition as a mandatory crypto haven was highlighted when data stories surfaced that Facebook whistleblower Frances Haugen had moved to Puerto Rico in March. Anyway, it has been a haven for crypto folks for quite some time, along with the extremely wealthy person from Bitcoin Puerto Rico who claims a 9 bedroom mansion there.
Logan Paul, the social media personality and founder of CryptoZoo, moved to the island earlier this year, where he rents a mansion for $ 55,000 a month. Paul told Time Magazine that the island’s tax-free status was a big part of the appeal:
Under Local Regulation Act 22, those who live in Puerto Rico for at least half of the year are exempt from taxes on interest, dividends, and capital-earning properties – meaning they keep most or all of their crypto or other income Invest without giving up your US residence.
“In Puerto Rico, because of the effects, people are motivated to do more and make more money.”
Crypto-related companies that have moved to Puerto Rico in recent years include New York-based hedge fund Pantera Capital and Silicon Valley’s non-fungible token marketplace SuperRare. More traditional financial types like legendary hedge fund manager John Paulson have also become residents.
“We’re trying to connect entrepreneurs with communities in Puerto Rico and educate them about the multiple benefits of the crypto era,” said Keiko Yoshino, executive director of PRBTA.
The Puerto Rico Blockchain Trade Association (PRBTA) recently announced the first edition of Puerto Rico Blockchain Week for December 2021, which aims to attract more crypto millionaires and investments to the island.
The capital migration that crypto brings to Puerto Rico encourages economic growth, but it has disadvantages for locals. Projects like Puertopia, a crypto-utopian community in San Juan, have been blamed for driving up property prices.
Puerto Rico isn’t the only location competing for crypto dollars.
To attract crypto investors and businesses, El Salvador is also offering significant tax breaks for Bitcoin trading, with investors being exempt from paying capital gains and income taxes on Bitcoin (BTC). Other classic tax havens have a cryptocurrency-friendly environment, including Switzerland, the Cayman Islands and Malta. Home of “Bitcoin Jesus” Roger Ver, St. Kitts and Nevis enables savvy crypto investors to avoid taxes and offers citizenship through an investment program and asset protection benefits for crypto millionaires and corporations.
In Portugal, crypto traders and miners are exempt from income tax, and in April the country approved the Digital Transition Action Plan, which will encourage the creation of economic spaces to encourage blockchain-based businesses.
Summary of the news:
- Puerto Rico sees renewed interest among the crypto rich
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