Key Takeaways:
- Tax breaks for crypto millionaires stir outrage in Puerto Rico.
- The major attraction to the island is Act 60.
- Locals are not happy about the phenomenon.
Crypto millionaires have started moving to Puerto Rico for tax benefits. It has become the hot objective as the island offers a year-round tropical background, a picturesque beach, and crypto-friendly policies.
Crypto entrepreneur and investor David Johnston moved his family (parents, wife, three daughters) and company to Puerto Rico in March 2021. He said being involved in the crypto ecosystem since 2012, shifting from Austin was an easy decision.
The U.S. territory of Puerto Rico offers substantial tax breaks to people who spend at least 183 days on the island every year. Another perk is that occupants can keep their American passports and not tax on capital gains.
Although, Johnston moved because he found his friends and colleagues decamping. He decided to check out the place himself, and his first reaction was, “Wow, okay, I get it”. He believes that the island is big enough for building a tech company and feels that Puerto Rico can become one of the hottest hubs, just like Texas capital was turned into by Tesla, Samsung, and Apple.
The biggest attraction to the island has to be Act 60, which implies a tax break known as the Individual Investors Act. It has got the tax obligation down to zero if set qualifications are met and is primarily for higher-level entrepreneurs and crypto traders. Another significant tax benefit is for companies that start their venture in Puerto Rico. They will have to pay only a 4% corporate tax rate.
However, locals aren’t thrilled about this inflow of occupants as the capital gains and tax exemption only apply to non-Puerto Ricans. So an organisation has pushed back the tax cuts and goes by #AbolishAct60.
