Under a law called Act 22, people who live in Puerto Rico for at least six months are exempt from taxes on dividends, interest and capital gains – meaning they can cash in on earnings from crypto and other investments without paying any tax. In a bid to take advantage of the lax tax laws, leading crypto firms, including the hedge fund NFT marketplace SuperRare and Pantera Capital, have left New York and Silicon Valley for Puerto Rico in recent years.
Other crypto investors, flushed with cash amid the crypto boom, have used their little-taxed profits to buy properties in San Juan with a vision to build a new society called ‘Puertopia.’ Crypto Investor and YouTube star Logan Paul also shifted to the country earlier this year and has been renting a mansion for about $US55,000 ($A73,000) per month – a move that Logan admitted was mainly motivated by the country’s tax policies.
“In Puerto Rico you’re motivated to do more and make more money because of the implications that come with it,” Logan said in an interview.
