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The Caribbean Island of Puerto Rico is piquing the interest of crypto investors as of late as they are flocking into the archipelago. What enticed these folks is the fact that the said U.S. territory is not charging its residents with federal income tax, not to mention that investors are paying zilch taxes on their cryptocurrency gains. Noice.
Crypto-friendly Puerto Rico
The Individual Investors Act – a.k.a. Act 22 – clearly states that it seeks to attract new residents to Puerto Rico by giving an absolute exemption from the territory’s income taxes on all passive income realized or accrued after such individuals become bona fide residents of Puerto Rico. This simply translates that a person can keep most if not all that was gained from cryptocurrency and other investments minus the requisite of giving up their United States residency.
Notable personalities on the island
Now dubbed as “crypto tax haven,” Puerto Rico’s popularity took to new heights when Facebook whistleblower Frances Haugen became a resident of the island back in March of this year.
Another notable inhabitant of the island is the content creator Logan Paul. For the uninitiated, the Ohio native founded Cryptozoo, which is an NFT play-to-earn based on Binance Smart Chain development. He moved to Puerto Rico earlier this year before fighting Floyd “Money” Mayweather Jr. in June. Reports suggest that he’s currently renting out a mansion on the island for over $50,000 a month. During an interview, he even told Time Magazine that it’s the tax exemption that made him decide to move there. Paul went on to say that he’s motivated to do more and make more money on the island due to the implications that go along with it.
It’s worth noting, though, that before this hype about the territory, Puerto Rico’s been a haven for cryptocurrency investors for quite a while now. Businesses related to crypto that have also moved into Puerto Rico include Silicon Valley’s SuperRare – an NFT marketplace and Pantera Capital, a hedge fund hailing from New York.
Meanwhile, the Puerto Rico Blockchain Trade Association (PRBTA) revealed last month that they’ll be holding the first edition of “Puerto Rico Blockchain Week” that will kick off this December. According to them, the event aims at enticing more crypto whales and investment into the territory.
In line with this, PRBTA’s Executive Director Keiko Yoshino said that they seek to connect entrepreneurs with communities within Puerto Rico and orient them about the numerous benefits available in this age of cryptocurrencies.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
