Puerto Rico attracts crypto crowd with favorable tax regime

Puerto Rico is attracting a growing number of crypto investors who are fed up with waiting on their respective governments to figure out a tax for crypto.

As the Internal Revenue Service (IRS) is preparing to collect information about people’s cryptocurrencies, and will require tax payment on those holdings in 2022, more investors are looking to find a place where these worries can be put to rest.

Speaking to CNBC, crypto entrepreneur and investor David Johnston explained how he left the US in March 2021 to head off for Puerto Rico where most of his friends currently reside.

“That’s where all my friends are. I don’t have one friend left in New York, and maybe the pandemic accelerated this, but every single one of them has moved to Puerto Rico”, he explained.

Puerto Rico has proven a tempting offer, especially after more ambitious projects such as the Satoshi cruise ship and purchasing an island to turn it into a crypto utopia both failed.

Puerto Rico has already proven a viable option for the majority of popular crypto investors, and billionaires.

Logan Paul, an NFT investor and controversial YouTuber, has also arrived on the island along with Brock Pierce, another crypto billionaire.

Puerto Rico has “too-good-to-be-true tax rules” which allow the island to continually attract people who want to stay away from mainstream finances.

The shift has been easy, especially with the help of experts such as Giovanni Mendez, a corporate and tax attorney who has been assisting people to set up shop in Puerto Rico.

Crypto investor George Burke was among the individuals to also leave for the island, especially after 2021 which proved a particularly strong year for the island.

Burke has made a “killing” during the pandemic, and while he refused to share the exact figure with CNBC, he has found it useful to make sure that his crypto holdings are “taxed” under Puerto Rican law.

If you want to enjoy crypto but don’t necessarily want to change your residence to Puerto Rico, you may just join Bitcasino, 1xBit or FortuneJack.

Source

Updated: 01/17/2022 — 18:00