Non-Puerto Rican residents are excluded from paying capital gains on investments made under Act 60, also known as the Individual Investors Act. This is one of the reasons why crypto investors, especially from the United States, are flocking to the island.

Because investors in the United States must pay 37 percent of short-term capital gains and 20 percent of long-term capital gains, the rule is crypto-friendly. It was put in place about ten years ago to attract investors to Puerto Rico.

According to Giovanni Mendez, most businesses seeking his services were crypto enterprises or investors, corporate advocates, and tax specialists.

In March 2021, crypto entrepreneur David Johnston relocated from New York to Puerto Rico, revealing that most of his pals had relocated.

Johnston went on to say that cryptocurrency start-ups and businesses surrounded his entire office building.

As a result, crypto-friendly legislation, along with a year-round tropical temperature and beautiful beaches, have made Puerto Rico a popular tourist destination.

Various locations are preparing to become crypto hotspots. For example, Rio de Janeiro, Brazil’s largest city, recently announced plans to invest 1% of its reserves in Bitcoin, with plans in the works to offer tax breaks to tech companies in Porto Maravalley.

Some countries are also progressing by creating a crypto-friendly environment for potential investors. El Salvador’s President, Nayib Bukele, declared in November that the country intends to establish the world’s first fully functional Bitcoin city in order to increase cryptocurrency adoption and awareness.

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