Banking in Puerto Rico: the ultimate destination for tech and crypto magnates
Although the five CBI stars tend to draw all the attention in the Caribbean, there's another destination that many people ignore but that is, however, a safe banking center and a hub for crypto magnates who look for better opportunities. When it comes to finding the best place for your finances don't forget Puerto Rico. The fact that it is officially a territory of the United States doesn't make it a bad option, but actually quite the opposite. Let's find out why Puerto Rico crypto entrepreneurs are finding the “island of enchantment” to be the perfect place to settle.
Puerto Rico is one of the Caribbean crypto-friendly countries when it comes to tax and financial benefits
Many business people have chosen to move here and benefit from what is known as Act 60, a Puerto Rican law that exempts some investors from paying tax on capital gains after they become residents.
Moreover, the capital, San Juan, boasts a fantastic community of crypto magnates and entrepreneurs. Those opening their tech companies or tech startups also have a place here. This is due in part to the island's spectacular charm. After all, it is not in vain that Puerto Rico has earned the nickname “la Isla del Encanto”, English for “the island of enchantment”.
But the most important magnet for owners of tech startups and Puerto Rico crypto entrepreneurs is the opportunity to get financial benefits. These are convenient for businesspeople of different sectors but, for some reason, the island has become one of the favorite destinations for crypto magnates and blockchain entrepreneurs.
After Hurricane Maria stroke in 2018, the local media for the first time reported a large wave of crypto magnates moving to Puerto Rico and promising to help the country recover from the consequences that the hurricane left behind.
According to a study conducted by the Puerto Rico Development Department, at least 31 crypto magnates arrived on the Island of Enchantment in 2021. Nonetheless, the number of tech startups and tech companies that are registered under Act 60 is estimated to be over 100.
What is Act 60 and why does it make Puerto Rico one of the most crypto-friendly
countries in the Caribbean
Act 60 is a magnet for millionaires thanks to its financial benefits. These were approved back in 2012 and amended in 2019. To sum up, the act exempts entrepreneurs from paying capital gains in the long term after the person becomes a resident on the island. It also provides exemptions on income derived from dividends and interests. Act 60 seems to be quite successful in turning Puerto Rico into one of the most crypto-friendly countries in the region. According to The New York Times, over 1300 people applied to become Puerto Rican residents under Act 60 in 2021. From these applications, 900 obtained approval.
Reports from 2019 revealed that these tax exemptions helped boost the real estate market, producing an income of $8.8 million in favor of the state.
It's worth noting that Act 60 does not promise zero tax instead, it offers an exemption on dividends and capital gains under certain conditions. For example, capital gains obtained after selling a property in Puerto Rico are taxed. However, this doesn’t seem to draw away crypto magnates, who keep choosing the “Island of Enchantment” as the ideal relocation place in the region.
Beyond crypto: Puerto Rico's reliable banking sector
The reader may be wondering why Mundo chose to write about this country. This happens to be one of Mundo's favorite jurisdictions when it comes to reliable banking. Among many other benefits, clients enjoy access to SEPA payments, real-time currency exchange, eCommerce options, and credit and business cards.
This places the island as one of the main safe banking hubs in the Caribbean. Being a part of the US, Puerto Rico provides a reliable political environment and a solid currency. When it comes to finding the right place to safeguard one’s assets, Puerto Rico doesn't disappoint, and it stands on solid ground within the Caribbean region thanks to its reliable banking sector.
In this regard, Puerto Rico can be compared with Panama, St. Lucia, and Nevis, but it has one thing that the others don't: the absence of CRS. Since the US is not subscribed to this regime neither is Puerto Rico since it's a territory of the said country.
Naturally, bank accounts in Puerto Rico are not designed for tax evasion. As long as the client complies with all the current rules, reporting to the country of origin is not mandatory. Nonetheless, keep in mind that this doesn't exempt you from paying taxes in Puerto Rico or in other countries where you may have connections or financial activities.
Disclaimer: this article presents a general view of Puerto Rico safe banking and Act 60. However, this article is not professional tax advice. Before making any important financial decision make sure to consult with a certified agent, professional, tax expert, or advisor.
Are you looking for safe banking in Puerto Rico crypto-friendly environment?
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