Puerto Rico, the Caribbean Island in the US territory, is seeing an incredible revival of attention from crypto investors, thanks to the favorable tax regulations. This is the single big reason why many crypto millionaires are moving to the new crypto capital to save a few thousands of dollars every year in federal taxes.
Under Act 22 of the tax laws, those who have been residents of Puerto Rico for a minimum of six months are exempted from paying taxes on capital gains, dividends, and interest. This implies they can cash in on crypto earnings and other investments without paying taxes.
Many leading crypto companies like SuperRare (NFT marketplace) and Pantera Capital (hedge fund firm) have also been taking advantage of the loose tax regulations. They have ditched Silicon Valley and New York in favor of Puerto Rico.
The news of Puerto Rico being a tax haven for crypto investors got highlighted when reports started flowing in that the Facebook whistleblower, Frances Haugen had shifted to this US territory. Logan Paul, the founder of CryptoZoo and a known social media influencer, also moved to this island a few months ago. Puerto Rico’s status of being tax-free has been a major appealing factor to crypto investors from across the country.
The crypto world has brought in a capital migration to Puerto Rico, which is boosting its economic growth. However, it brings along a few downsides to the locals. For instance, the housing prices have been soaring due to Puertopia-like projects – Puertopia is a San Juan-based crypto utopian community.
Crypto investors are motivated to make more money here due to the implications that come along.