Puerto Rico is New Haven for Rich Crypto Entrepreneurs

Daniel Attoe
Daniel Attoe

Updated · Feb 21, 2022

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Puerto Rico has become a premium destination for wealthy cryptocurrency investors, offering a variety of incentives.

Destination Puerto Rico

Crypto investors and companies in search of tax breaks and a scenic environment have begun to troop to Puerto Rico. 

Friendly financial and legal benefits mean the Caribbean island is an attraction for the gurus and companies like crypto exchange startups. The island’s excellent weather is also a strong draw, according to CNBC.

People who spend at least 183 days in Puerto Rico every year can take advantage of its appealing tax concessions. The country allows residents to skip paying taxes on US capital gains if they buy assets after establishing residency.

Mainland companies in Puerto Rico pay a 21% federal corporate tax as well as a state one. However, companies that export services out of Puerto Rico only have to pay 4% in corporate federal taxes.

Puerto Rico’s tourism industry has now stabilized after the catastrophic Hurricane Maria that took place four years ago. The influx of Bitcoin and crypto entrepreneurs serves as a further boost to the industry.

Impact on Locals

The wave of newcomers into Puerto Rico is not without any adverse effects on the island’s locals. 

According to The Washington Post, home prices have shot up in the capital San Juan as new millionaires flock in. There are also grumblings that the new residents are failing to create jobs or help the native residents.

Consequently, members of Puerto Rico’s social-democratic Independence Party are now clamouring for a repeal of the friendly regulations.

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Daniel Attoe

Daniel Attoe

Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.

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