How does Puerto Rico's tax system treat crypto assets?

3 answers

• Dec 24, 2021 · 3 years ago
  In Puerto Rico, the tax treatment of crypto assets is quite favorable. Individuals who are bona fide residents of Puerto Rico and meet certain requirements can benefit from Act 60, also known as the 'Individual Investors Act.' Under this act, capital gains from the sale of crypto assets are not subject to federal taxes. This means that individuals can potentially save a significant amount of money on their crypto investments. However, it's important to note that while federal taxes are waived, individuals may still be subject to local Puerto Rico taxes.
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• Dec 24, 2021 · 3 years ago
  When it comes to businesses involved in crypto activities, Puerto Rico offers even more attractive tax incentives. The Act 20 and Act 22, also known as the 'Export Services Act' and the 'Individual Investors Act,' respectively, provide substantial tax benefits for businesses and individuals engaged in the crypto industry. Under these acts, businesses can enjoy a flat 4% tax rate on export services, including crypto-related services. Additionally, individuals can benefit from a 0% tax rate on capital gains and dividends. These tax incentives have made Puerto Rico an attractive destination for crypto businesses and investors.
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• Dec 24, 2021 · 3 years ago
  At BYDFi, we understand the importance of tax considerations for crypto assets. Puerto Rico's tax system offers unique advantages for individuals and businesses involved in the crypto industry. With Act 60, individuals can potentially save on federal taxes, while Act 20 and Act 22 provide significant tax benefits for businesses and investors. It's crucial to consult with a tax professional to ensure compliance with all applicable tax laws and regulations. If you're considering Puerto Rico as a crypto-friendly jurisdiction, BYDFi can provide expert guidance and support throughout the process.
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