Bitcoin Millionaires Are Flocking To This North American Tax Haven. But What Do The Locals Think?
January 18 2022 - 6:00PM
NEWSBTC
Bitcoin has made its own fair share of millionaires and with the
recent bull rally, there is no doubt that this number went up
drastically. This has led to a number of issues of investors who
have made their money off the digital asset, the main one being
taxes. A lot of these millionaires have begun to flee to places
with less strict tax laws, as well as better weather conditions.
Bitcoin Millionaires Flock To Puerto Rico A recent report from CNBC
documents the movements of bitcoin millionaires towards Puerto Rico
and its beautiful islands. The subject of the report, 36-year-old
crypto entrepreneur and investor David Johnson, outlines why he
moved himself and his entire family to the North American country.
For the entrepreneur, the tropical paradise was a big push, as well
as the tax breaks offered to those who spend at least 183 days on
the island. Related Reading | Altcoins Are Encroaching On
Bitcoin’s Dominance On Digital Payments Johnson also noted that the
decision to move was also predicated on the fact that his friends
had all moved to the same destination. The 36-year-old who lived in
New York before the move said there weren’t any of his friends left
in what is said to be one of the most expensive cities in the world
as they had all moved to Puerto Rico. “That’s where all my friends
are. I don’t have one friend left in New York, and maybe the
pandemic accelerated this, but every single one of them has moved
to Puerto Rico,” Johnson told CNBC. In addition to offering tax
breaks to those who spend a significant amount on the island,
residents are also allowed to retain their American passports.
Locals Not Feeling The Love Puerto Rican locals are not exactly
happy about seeing the move to the tropical paradise. This has less
to do with the people coming in and more to do with the fact that
the locals themselves do not qualify for the tax exemptions that
these non-Puerto Ricans enjoy. Residents like Johnson who move in
from other American states after making their millions with bitcoin
and crypto do not have to pay capital gains on their earnings.
However, Puerto Rican citizens are having to pay up to 15%
long-term capital gains tax. Related Reading | American Rapper
Lil Baby On Holding Bitcoin And Ethereum Over Fiat This disparity
between locals and non-locals has obviously now been the source of
tension between the two groups. These tax breaks which were meant
to bring more jobs and investors into the region are now being
utilized by residents who are trying to get out of paying capital
gains tax. Additionally, the influx of new wealthy residents is
causing property costs to surge. Diaz Fournier of Luxury Collection
Real Estate told CNBC that the increased demand has led to prices
not seen before. “I’ve been tracking the markets for several years,
and I was not expecting this,” Fournier said. “You have properties
in Dorado Beach that have been sold for more than $20 million.” BTC
falls to $41K | Source: BTCUSD on TradingView.com Featured image
from Wallpaper Flare, chart from TradingView.com
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