Puerto Rico is where all millionaires are moving as low taxes on crypto and Island living

Generous tax breaks and a beach view that sure take your breath away – that’s Puerto Rico for you!!

As per a recently conducted study by CNBC, crypto investors prefer migrating to Puerto Rico for three reasons –

  • There is no tax on capital gains from cryptos
  • Low cost of living
  • Stunning beaches and picturesque view to wake up every morning

Key highlights

  • Puerto Rico is now becoming a hub for crypto investors
  • Bitcoin companies and other start-ups are making Puerto Rico their home
  • Tax breaks and island lifestyle

Why Puerto Rico?

Going beyond the picturesque beauty this island is crypto-friendly. So, if you have spent more than 183 days each year on this island then you can surely claim the tax benefits offered here. This means you still hold American passports but enjoy tax benefits on capital gains from crypto investments. This luxury is otherwise not possible in any other US state.

So how does this exactly work?

To gain a tax benefit, you need to prove that all your assets were purchased after you established your residence in Puerto Rico. This way your assets and capital gains on cryptos attract tax exemption.

Crypto companies in Puerto Rico

Not only individual investors but there are also crypto companies who have found their way to this island. Crypto giants including Pantera Capital, DLTx, and NFT have established their offices here. Redwood city ventures, an investment company has also recently opened its office on this island. Another important factor of consideration is that all these changes happened in the past 12 months.

Puerto Rico is in its phase of recovery. The Hurricane Maria of 2017 had caused damages to the island. Before the hurricane hit, the overall tourism in Puerto Rico helped an annual growth of 6.5%. But, the island became deserted post-2017. But, in 2021, Puerto Rico revamped its tourism sector. There was an increase in revenue. Tax income on sales, marketing, and promotional activities was at an all-time high.

Understand the perks

This island has become the hot cake for all crypto investors. Tax benefits and savings schemes offered by this island is attractive factor to many crypto investors and companies. Referring to Act 60 there are significant tax benefits offered by the US government to their residents.

As per US law, residents pay more than 37% of their total income on short-term gains. In the case of long-term gain, the tax percentage ranges between 18-20%. The same rule applies to crypto assets as well. Residents need to declare their total crypto investments and the volume of capital gains or losses accrued during the year. basis this, the tax computation is evaluated and paid to authorities. The US considers all crypto investments as an asset and hence the tax slab as applicable to an asset shall apply here. now, imagine you not paying any tax to your income. That’s why people throng Puerto Rico. As per Act 60, there is a huge drop in tax schemes if investors can meet certain criteria as defined in the act. This is beneficial for individual investors and crypto companies owning licenses to operate.you can trade them by bestforexbrokeraustralia.com

Now let us also understand the reason why crypto companies try to find their roots in Puerto Rico. In the US, registered crypto companies need to pay 21% federal tax in addition to the state tax. Now if a firm is registered and operates completely out of Puerto Rico, then these companies are liable to pay only 4% corporate tax. This tax benefit is lucrative for crypto companies and now find their routes in Puerto Rico.

The 2021 market for cryptocurrency was crazy. Investors – both individuals and institutions gained huge gains from their investment. However, with this gain came the added tax slabs as well. Going by market trends and analysis of crypto performance in 2022, it is evident that investors will make their move to this island. While Puerto Rico today has close to 3 million residents, this count is going to shoot during 2022. We would need to wait and watch to understand the stand taken by the US government here. This movement of investors has also revamped the tourism sector. There are other development opportunities on this island.

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