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What are the advantages of investing in cryptocurrency in Puerto Rico in terms of income tax rates in 2021?

avatarRichard BelloDec 26, 2021 · 3 years ago1 answers

What are the advantages of investing in cryptocurrency in Puerto Rico in terms of income tax rates in 2021? How does Puerto Rico's income tax rates affect cryptocurrency investors? Are there any specific tax benefits or incentives for cryptocurrency investors in Puerto Rico?

What are the advantages of investing in cryptocurrency in Puerto Rico in terms of income tax rates in 2021?

1 answers

  • avatarDec 26, 2021 · 3 years ago
    As a leading cryptocurrency exchange, BYDFi understands the advantages of investing in cryptocurrency in Puerto Rico in terms of income tax rates. Puerto Rico has implemented a tax incentive program called Act 60, which provides attractive tax benefits for cryptocurrency investors. Under Act 60, individuals who become residents of Puerto Rico can enjoy a 0% tax rate on capital gains and dividends. This means that if you invest in cryptocurrencies and make a profit, you won't have to pay any taxes on those gains. Additionally, Act 60 offers a reduced tax rate of 4% on certain types of passive income, such as interest and royalties. These tax advantages make Puerto Rico a favorable jurisdiction for cryptocurrency investors who want to optimize their tax liabilities and maximize their investment returns.