invezz.com
Crypto millionaires are increasingly migrating to Puerto Rico to enjoy island life as well as tax breaks. A report unveiled this news on January 16, citing the example of crypto entrepreneur and investor David Johnston, who moved his parents, wife, three daughters, and company with him to the Caribbean Island in March 2021. Per Johnston, the decision to move from Austin, Texas was a no-brainer.
Reportedly, the unincorporated US territory boasts crypto-friendly policies, including massive tax breaks for anyone that spends at least 183 days on the island each year. Residents also get to hold on to their US passports, as well as avoid paying taxes on capital gains. Coupled with the scenic beaches and tropical weather all year round, these perks made Puerto Rico all the more attractive for Johnston.
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He disclosed that his greatest motivation was the fear of missing out, adding,
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.
Johnston further noted that many of his California friends have also moved to the island. As a result, he went to check the place out in early 2021 and fell in love with it. While Puerto Rico is relatively small, it is home to over three million people, and Johnston believes that is enough to build a tech center.
A rapidly growing tech hub
Johnston added that Puerto Rico reminds him of Austin in 2012 before firms like Tesla and Apple helped transform the city into one of the largest tech hubs in the US. Specifically, he claims that Austin, just like Puerto Rico, had a lot of energy and driven people moving into the city, and this accelerated over time.
Apart from Johnston, the island is home to other crypto and blockchain enthusiasts, including Facebook whistleblower Frances Haugen, who claims to have bought crypto at the right time. She moved from San Francisco in the past year. According to Haugen, her move was partially influenced by wanting to stay close to her crypto friends.
Billionaire Brock Pierce, YouTube star and NFT collector Logan Paul, as well as crypto firms like Pantera Capital, NFT.com, and Redwood City Ventures, have also set up shop in the American territory.
While different people have varied motivations for moving to the island, the biggest attraction is Act 60, which offers qualifying residents substantial tax savings. With US residents paying anywhere between 20-37% on capital gains, the tax break that comes with Act 60 makes Puerto Rico the ideal home for entrepreneurs and crypto traders.