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Puerto Rico, a US territory, is seeing a resurgence of interest from crypto investors, owing to the fact that it does not levy federal income tax and therefore eligible investors can pay no taxes on their crypto gains.
Those who live in Puerto Rico for at least half of the year are excluded from taxes on interest, dividends, and capital gains under local statute Act 22, which means they can keep most or all of the income from bitcoin or other assets without having to renounce U.S. residence.
The territory’s popularity as a crypto tax haven was emphasised when news broke that Frances Haugen, Facebook’s whistleblower, had relocated to Puerto Rico in March.
However, it has long been a sanctuary for cryptocurrency enthusiasts, like Bitcoin billionaire Puerto Rico, who owns a nine-bedroom mansion there.
Story by : Norvisi Mawunyegah