The president promised investors that there will be no taxes on capital gains. Justin Sun assured that Tron will be the first company to establish offices in El Salvador.
After announcing, on June 5, his intention to adopt bitcoin as legal currency, the president of El Salvador, Nayib Bukele, openly spoke about his strategies to encourage investments by cryptocurrency companies in the nation.
On Sunday, June 6, the head of state of the Central American nation indicated through his Twitter account that his proposal will be accompanied by some fiscal and economic incentives for the new capital in bitcoin that could enter the country, once they are put into action. March your plans.
Bukele highlighted “excellent weather, world-class surf beaches, beachfront properties for sale” as one of the main advantages for investors, adding that El Salvador is one of the few nations in the world without income taxes. property.
According to Bukele, There is no Tax on Capital Gains in Bitcoin
On the other hand, he also clarified in his tweet that in his country, there is no tax on capital gains in bitcoin, since it will be legal tender. It also brings instant permanent residence for crypto entrepreneurs.
In response to Bukele’s message, many of the followers, including those who identified themselves as cryptocurrency investors, responded to the tweet noting that, due to this offer, moving to El Salvador would bring many benefits.Among those who commented on Bukele’s account was Binance CEO Zhao Changpeng, who posted a gif of Mickey Mouse packing his bags.
The founder of Tron also made a similar move. He expressed that investors and crypto entrepreneurs will start their businesses in El Salvador. Sun makes another announcement on Twitter on the matter, ensuring that Tron will become the first crypto organization to create an office in El Salvador.
Investments in El Salvador in the First Quarter of 2021
Although President Bukele has not explained in which economic areas these bitcoin investments can happen, some local media in that nation reported that during the first quarter of 2021 there have been a lot of announcements about the injection of capital by the private sector.
The confirmed projects lead the construction, energy, telecommunications, real estate, and retail sectors that are committed to a more agile recovery of the business impact, which is diminished by the greatest collapse of the economy in 40 years.
In total, the investment plans have a combined value that exceeds USD 100 million. Some initiatives were planned for 2020, but other investors follow a strategic approach to reactivation.
Bukele’s Statement is a Surprising Move
The details of the measures that would make the Central American country the first in the world to adopt bitcoin as legal tender remain unknown. However, Bukele’s statement appeared through a message on a broadcast at Bitcoin 2021. During his speech, Bukele revealed that he is joining efforts with Strike company (a startup developer of a digital wallet) to build the infrastructure for the use of cryptocurrency.
By: Jenson Nuñez