Crypto Billionaires Flood Puerto Rico Owing to Tax Incentives on Crypto Gains

North American territory, Puerto Rico has become a tax haven for crypto billionaires around the world. In recent times, Puerto Rico has witnessed more inflow of crypto capital as crypto investors besiege the territory given its more favourable tax laws compared to the US.

Puerto Rico offers investors zero federal income tax as well as zero taxes on capital gains made from digital assets. By law, investors who reside in Puerto Rico for a minimum of 6 months are given tax Incentives on interest, dividends and capital gains, which means that they are allowed to claim most or all of the gains made from investments in cryptocurrencies and other assets.

Several crypto and traditional investors including businesses currently reside in Puerto Rico. They include celebrity and founder of CryptoZoo Logan Paul; former child actor and Bitcoin billionaire Brock Pierce who reportedly owns a mansion in the territory; renowned hedge fund manager John Paulson; Pantera Capital and NFT marketplace SuperRare.

Puerto Rico is not the only territory vying for crypto dollars. Territories such as El Salvador, Malta, the Cayman Islands, have all become a major appeal to crypto investors as they offer various forms of tax incentives on cryptocurrencies to attract investments from these investors. Portugal has also joined the league as crypto traders and miners are precluded from paying income taxes.

With the calls for more crypto taxes rising in the US and a few other countries, crypto traders, miners and investors are drifting toward locations with friendlier tax laws.