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Puerto Rico sees resurgence of interest among crypto rich

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Cryptocurrency investors are reviving their interest in the US territory of Puerto Rico. Attracted by the fact that there is no federal income tax. And that qualifying investors can pay no taxes on their cryptocurrency earnings.

Those who live in Puerto Rico for at least half of the year are free from paying taxes on interest, dividends. As well, capital gains, according to local statute Act 22. That is, they can keep the majority or all of the gains from crypto or other investments without having to leave the United States.

The prominence of Puerto Rico as a crypto tax haven was emphasised when news broke that Facebook whistleblower Frances Haugen had relocated to the island in March. It has, however, long been a sanctuary for cryptocurrency enthusiasts, notably Bitcoin millionaire Puerto Rico, who has a nine-bedroom house there.

Logan Paul, the Cryptozoo creator and social media sensation, relocated to the island earlier this year and leases out a $55,000-per-month home. According to Paul, the island’s tax-free status was a major selling point.

“Because of the ramifications, people in Puerto Rico are encouraged to achieve more and produce more money.”

Puerto Rico aims to attract more crypto millionaires and investment to the island

Hedge fund Pantera Capital from New York and NFT marketplace SuperRare from Silicon Valley are among the crypto-related enterprises that have migrated to Puerto Rico in recent years. Traditional financial figures such as John Paulson, the famed hedge fund manager, have also moved in.

The Puerto Rico Blockchain Trade Association (PRBTA) recently announced the inaugural edition of the Puerto Rico Blockchain Week. Which will take place in December 2021, with the goal of attracting more crypto millionaires and investment to the island.

PRBTA Executive Director Keiko Yoshino noted, “We hope to link entrepreneurs with communities in Puerto Rico. And educate them on the numerous benefits accessible in the crypto era”.

Crypto’s capital migration is promoting economic growth in Puerto Rico, but it has consequences for residents. Housing costs are being blamed on projects like Puertopia, a crypto utopian town near San Juan. However, Puerto Rico isn’t the only place to trade cryptocurrency.

El Salvador is another example

The goal is to attract cryptocurrency investors and businesses. El Salvador also provides significant tax benefits for Bitcoin traders, exempting them from capital gains and income taxes.

Switzerland, the Cayman Islands, and Malta, among other traditional tax havens, have embraced cryptocurrencies. St Kitts and Nevis, home to “Bitcoin Jesus” Roger Ver, allows skilled crypto investors to evade taxes and provides citizenship by investment scheme. As well as asset protection benefits for crypto millionaires and enterprises.

Crypto merchants and miners are free from paying income tax in Portugal. And the nation passed the Digital Transitional Action Plan in April. Which will support the construction of economic zones devoted to blockchain-based enterprise.

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