In Puerto Rico, American investors with large incomes do not have to pay taxes on capital gains. Companies have benefits to operate on the island, as they only have to pay 4%, instead of 21%, in corporate taxes.

A new Latin American destination emerges for investors from the United States seeking to develop the Bitcoin (BTC) economy. That is none other than Puerto Rico, which is already a reference for enthusiasts in the market.

Besides being a tropical paradise and having friendly people, its low taxes are the primary attraction for investors. For that reason, those who manage high amounts of money consider it an ideal destination to respond to the Bitcoin ecosystem.

American high-income investors have to pay up to 20% in capital gains taxes, or 37% in the case of short-term earnings. However, some exemptions would favor them in Puerto Rico.

Companies with a presence in the US have to pay 21% in federal corporate taxes but only 4% on the island.

Plenty of Requests from Investors Interested in Living in Puerto Rico

The government of Puerto Rico has received at least 1,200 requests from investors under the Individual Investors Act. Bloomberg reported that this record number of people interested in living there know they are exempt from taxes.

Meanwhile, 274 firms, limited liability companies (LLCs), partnerships, and other entities received approval under the Export Services Act. That law grants a corporate tax rate of 4% and a 100% exemption on dividends.

Act 60, which consists of tax exemptions dating from 2019, protects both legislations in Puerto Rico. They intended to attract investors from the Bitcoin industry and other branches.

There Are Long-Standing Exemptions in the Tax Laws

Cryptocurrencies have allowed the number of investors flocking to Puerto Rico to gain prominence this year. Curiously, the exemptions date from 2012, when the government bet on injecting cash on the island and diversifying job sources.

The defenders of those tax exemptions consider them a boost for a country that has already faced a 4-year-old crisis, natural disasters, and political instability.

However, some detractors criticize that some laws focused on investor privileges only apply to new residents. In other words, Puerto Ricans cannot take advantage of those benefits.

The Experience of American Investors in Puerto Rican

Puerto Rico has Bitcoin ATMs in three well-known places: Bahía, the Dorado Beach resort, and Condado. Most American investors live in those locations, where the pioneering cryptocurrency has received a notable boost.

Brent Johnson, the CEO of wealth management firm Santiago Capital, is a Bitcoin enthusiast. The Californian entrepreneur said that restaurants, cafés, and a shopping center make Condado look like a small Miami.

Johnson commented that he has contacted other companies like his, with private capital and linked to cryptocurrencies, in Puerto Rico.

Anthony Emtman, the CEO of Ikigai Asset Management, thinks that Bahía gives the feeling of living in a tropical forest. The entrepreneur stated that people could play tennis, basketball, golf, lift weights in the gym or do kayak in that place.

By Alexander Salazar

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