he Caribbean is becoming a haven for cryptocurrency holders. As of this year, St Kitts and Nevis has become the first island to offer “electronic gold” to help those who want a more accessible way into one tax jurisdiction without having to live there full-time or even visit often enough.
Here are some details about how it works:
Saint Kitts and Nevis is a small island country in the Caribbean. It's also part of an international organization called The Commonwealth Realm, which means it operates under Queen Elizabeth II as her official representative with ultimate authority over everything that takes place on these shores.
This small island nation is known for its warm and welcoming people. The beaches are stunning, with beautiful mountains nearby to charm your eyeballs out on a walk or bike ride through the suburban landscape! The local culture revolves around “limin”- which means hanging out drinking and talking about life in general—and there's always some kind of party happening at one bar or another throughout this youthful country.
Plenty of well sugar plantations have been converted into luxury hotels. It's a lovely area of the world.
But here's the interesting part for cryptocurrency investors. Citizenship by investment is available in St. Kitts and Nevis. This has been established for a long time, dating back to the 1980s. For a $150,000 investment, investors can obtain a St. Kittian passport. However, if you have 3.89 BTC to invest, a passport is now as good as yours. So long as you're not a crim.
Crypto life in St. Kitts and Nevis
Cryptocurrencies are becoming more popular as people find ways to take advantage of their freedom and mobility. In St Kitts, cryptocurrency investments will not be taxed. The small country in the West Indies doesn't impose any capital gains tax on anything, including cryptocurrencies, making it an excellent place for crypto investors looking to get started with this new technology. Even Bitcoin ATMs are placed throughout so you can quickly convert your coins into cash if needed.
Savory & Partners is an accredited agent for several governments, assisting people in obtaining citizenship through investment. They claim that a specific government or regulation may shake cryptocurrencies.
"In the United States, for example, cryptocurrency investors may have difficulty dealing with their crypto-assets. Americans are notoriously barred from participating in certain new coin offerings, and the US Internal Revenue Service (IRS) taxes capital gains on cryptocurrency sales exceeding $10,000. But that is only the beginning. Assume a crypto investor sells a Bitcoin worth $68,000. A whopping $58,000 of that total would be subject to capital gains tax."
According to Savory and Partners, Biden's administration is currently working on tax reform. "It will raise the capital gains tax from 20% to 39.6%." This reform has the potential to destabilize, if not destroy, a cryptocurrency investor's profit margin."
St. Kitts and Nevis famous passport holders
Roger Keith Ver is a well-known crypto figure. He was an early Bitcoin investor and is known as 'Bitcoin Jesus,' according to Savory and Partners. Roger Ver has taken the plunge and obtained a St. Kitts and Nevis passport, renouncing his US one.
He is now living his life to the fullest in the Caribbean. "While cryptocurrency provides some financial freedom, its full potential is unlocked by obtaining citizenship in a crypto-friendly, tax-friendly country like St. Kitts and Nevis." Citizenship by investment in St. Kitts and Nevis has long been a way for high-net-worth individuals to gain greater global mobility, increased financial freedom, and a solid plan to mitigate political and economic instability.
The idea of individual freedom and responsibility has been a central tenant in the blockchain's inception. With each passing day, new ponderings arise around its implications for governments' powers to surveil their citizens or restrict access as they see fit; these thoughts are only growing stronger with time because this technology evolves so rapidly.
"Cryptocurrency is truly decentralized, giving its holders the freedom to roam freely," said Savoy and Partners. “However, another venture offers comparable benefits in terms of physical freedom: citizenship by investment. The point at which cryptocurrency and citizenship by investment intersect is obvious - freedom. Combining Citizenship by Investment Programs with cryptocurrency increases freedom, allowing a person to travel the world with their wealth."
The Caribbean is a popular location for cryptocurrency entrepreneurs. The sunny climate, beautiful beaches, and affordable living costs make it an appealing destination in this region that has become increasingly known as the crypto-coast.