Bitcoin millionaires are relocating to Puerto Rico due to the island's reduced taxation. Thanks to the island’s tax laws, which exempt cryptocurrency income from taxation, these digital currency enthusiasts are able to keep more of their earnings.

David Johnston, a crypto entrepreneur and investor, moved his family to Puerto Rico in March 2021. The 36-year-old says the decision to relocate from Austin was kind of a no-brainer.

"The tax situation here is incredible," Johnston told Business Insider. "There's no capital gains tax, no state income tax, and no inheritance tax." “All my friends are there. Every single one of my friends has migrated to Puerto Rico, and perhaps the epidemic hastened this; I don't have a single friend left in New York," he continued.

In the past few years, the island has become a mecca for crypto millionaires, with some estimates suggesting that there are now more than 500 Bitcoin millionaires living on the island.

There are rules that are supportive of cryptocurrencies, such as significant tax reductions for visitors who stay on the island for at least 183 days each year. Residents are not subject to capital gains taxes and are allowed to keep their American passports.

This influx of wealthy individuals is starting to have a positive impact on the Puerto Rican economy. Luxury real estate prices are rising, and high-end restaurants and retailers are beginning to pop up in San Juan.

However, not everyone is thrilled about this trend. Some worry that Puerto Rico is becoming a haven for tax evaders and money launderers. And with the island's infrastructure struggling to keep up with demand, there are concerns that the influx of wealthy newcomers could end up exacerbating existing problems.

Advantages of living on an island

Aside from the beautiful scenery and relaxed lifestyle, it also offers plenty of perks and opportunities to enjoy the outdoors. 

For starters, it's a great place to network with other like-minded individuals. Whether you're looking to invest in the latest cryptocurrency or simply chat about the industry, you will find others who share your interests.

If you’re looking for an active lifestyle, plenty of activities keep you busy, including hiking, biking, swimming, and snorkeling. And, of course, there’s always the beach!

Another big perk of island life is the sense of community that exists. Everyone knows each other, and there's a real sense of camaraderie. You'll quickly make friends and feel like you belong.

Puerto Rico is also a great place to raise a family. It has great schools and a low crime rate. So if you're considering a move to an island living, rest assured that you won't be disappointed. Its friendly community, relaxed lifestyle, and beautiful setting make it a perfect place to call home.

Paradise seeker

Puerto Rico appears to be a paradise for those who want to live tax-free and enjoy the island lifestyle. And with more and more people becoming interested in cryptocurrency, this trend will likely continue in the years to come.

So far, the island has been welcoming new arrivals, and many businesses are beginning to accept Bitcoin as payment. However, it remains to be seen how long this trend will last or whether other countries will follow suit in offering similar tax breaks. Either way, it's clear that Bitcoin millionaires are on the move - and Puerto Rico is their destination of choice.

Source:
https://www.cnbc.com/2022/01/16/puerto-rico-low-taxes-island-life-make-it-hot-for-bitcoin-fans.html

Posted 
Jul 2, 2022
 in 
Digital Lifestyle
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