It is a common saying in the United States that ‘You cannot evade death and taxes’. While humorous on the surface, the saying indicates a deeper problem in the United States – that of taxation. Other countries are capitalizing on this issue to revive their drowning economies. El Salvador pulled off this move in the future to attract investors, and now Puerto Rico is doing the same. One island in Puerto Rico is drawing special attention as the tax haven for cryptocurrency owners. St. Regis Bahia Beach Resort is no longer a tourist destination, but a permanent residence for many crypto entrepreneurs. There are many reasons for it, but taxation remains the most important.
In the United States, crypto holders have to pay 20% on capital gains. Puerto Rico requires 0% taxation on capital gains. Federal corporate taxes in the United States is 21%. In Puerto Rico, it is only 4%. These attractive taxation rates have attracted many entrepreneurs from all parts of the world.
Apart from taxation reasons, the Covid-19 pandemic and subsequent lockdowns played an important role in attracting entrepreneurs. While it became difficult for businesses to operate in many countries, Puerto Rico loosened regulations. The rise of remote work also enabled many people to flock to this luxury island. With the growth of the cryptocurrency economy, many entrepreneurs also had the financial means to move out of their countries and settle on this island. More people are expected to settle in St. Regis Bahia Beach Resort in 2022.
