A legion of entrepreneurs is flocking en masse to Puerto Rico. These entrepreneurs are uprooting their lives from California and establishing a new one on the Caribbean island to avoid federal taxes on their growing wealth, which may reach the billion-dollar mark.
These crypto investors plan to create a crypto utopia, a new city where the contracts are all public and the money is virtual. They are doing this to show the rest of the world what a crypto future would look like.
Why is Crypto Taxed Differently in Puerto Rico?
In 2012, the Puerto Rican government, which is an unincorporated territory of the US, announced a series of acts that offers tax incentives to American investors who are willing to relocate to the island.
This resulted in large crypto players such as hedge fund Pantera and Darma Capital, a risk management firm moving to Puerto Rico. Moreover, in recent months, several cryptocurrency conferences are hosted in Puerto Rico and a number of beginners’ courses are set up to teach them the basics of digital currencies.
Besides the year-round tropical backdrop and picturesque beaches, Puerto Rico has crypto-friendly policies. This means if an investor spends at least 183 days on the island, they will have their crypto taxed with unparalleled tax incentives. These investors can stay on the island without losing their American passports and not pay any taxes on capital gains.
Puerto Rico is My Community: David Johnston
David Johnston, a crypto entrepreneur, and investor moved his whole family and business to Puerto Rico in March 2021. The 36-year-old believes that relocating to the island from Austin was a no-brainer. He also says, “Puerto Rico is where my community is and these people are going to build something really cool that helps everyday people.”
Puerto Rico Is My Dream: Evan Arteaga
The 38-year-old Evan Arteaga believes that technology can save the world. Arteaga moved to the island after making a small fortune in crypto and has been living in Puerto Rico for four years.
The former cannabis entrepreneur is now helping launch a tech-enabled art and community center in old San Juan. He also believes that crypto markets are the inevitable evolution of the capital marketplace.
Decentralize Everything: Amanda Cassatt
Amanda Cassatt is the founder of Serotonin, a marketing firm focused on working with crypto companies. She ventured quite early into Ethereum and now she is a central figure in the Puerto Rican crypto movement. She believes that everything will be decentralized in the future. Currency is just a start. Energy markets should be decentralized as well.
In 2017, Puerto Rico was hit by a hurricane of epic proportions. Hurricane Maria caused estimated damage of $90 billion. The entire island was devastated with no access to power and power outages are still common to this day. The favorable crypto-taxed laws are bringing in money to Puerto Rico.
The wealthy newcomers have purchased properties by the beach, and bought expensive restaurants and private schools. These newcomers have invested millions of dollars into development projects and philanthropy to help the island bounce back from the reeling effects of the hurricane.
To Conclude
Entrepreneurs and investors such as Cassatt and Arteaga are just the tip of the iceberg in driving the digital economy of Puerto Rico to its next phase. Blockchain, Web3, and Metaverse are new terms that have come with the digital revolution. However, this digital revolution is about to be transformed even further and will create a new economy.
FAQs
1. Can you trade crypto in Puerto Rico?
Yes, you can trade crypto in Puerto Rico in tokens such as Bitcoin, Ethereum, USD Coin, Litecoin, and many more. Not only this, crypto investors get unparalleled tax incentives.
2. Is crypto taxed differently in Puerto Rico?
Yes, crypto is taxed differently on the island. In 2012, the Puerto Rican government, which is an unincorporated territory of the US, announced a series of acts that offers tax incentives to American investors who are willing to relocate to the island.
If an investor spends at least 183 days on the island, they will have their crypto taxed with unparalleled tax incentives. These investors can stay on the island without losing their American passports and not pay any taxes on capital gains.
3. What caused crypto investors to flock to Puerto Rico?
The Puerto Rican government announced a series of acts that offers tax incentives to American investors who are willing to relocate to the island in 2012. Attracted by the whooping tax breaks, beautiful year-round sunshine, and a dream to create a new society (crypto-utopians — cryptopians), thousands of US migrants, predominantly from the realm of finance moved to the Caribbean territory.
