A Crypto Island Paradise: Tax-free Golf And Beach Houses. St. Regis Bahia Beach Resort in Puerto Rico has a golf course. And coastal apartments in a 483-acre nature reserve. The website’s part describing tax incentives for island residents. May be most tempting to people racing to this property.
The website’s part describing tax incentives for island residents. May be most tempting to people racing to this property.
Anthony Emtman left Los Angeles and acquired a condo at the resort in March. The CEO of Ikigai Asset Management has relocated to Puerto Rico’s north shore. Where the tropical weather is a bonus.
Emtman and his crypto friends are following hedge funds’ lead and relocating. To the island to save on taxes. High-earners in the US pay up to 20% capital gains tax and up to 37% on short-term gains. They don’t pay in PR. Companies on the mainland pay 21% federal corporate tax plus a 4% state tax. Compared to 4% on the island. For some investors. It’s a no-brainer. Especially as the crypto market continues to soar and Democrats push for more taxes on the wealthy.
On the small island, accidental meetings and networking possibilities abound. Random meets at taco stalls, unplanned cocktails and dinners at luxury condos. And “Crypto Mondays” gatherings at hotels and restaurants across San Juan.
Pantera Capital and Redwood City Ventures are two crypto funds with offices on the island. Former Facebook product manager Frances Haugen told the New York Times. She lives in Puerto Rico to be with her “crypto friends.” Mayor-elect Eric Adams travelled there with crypto-billionaire Brock Pierce in November for dinner with Governor Pedro Pierluisi.
Moving to Puerto Rico to avoid tax is no longer the norm, says Giovanni Mendez. A corporate and tax attorney. The message is, ‘Move to Puerto Rico.’
The 2012 tax breaks were created by Puerto Rico
The tax reductions were implemented in 2012. To help Puerto Rico’s struggling economy and job market. The epidemic — which spurred a shift away from big cities and popularized remote employment. And the current explosion in crypto markets have fueled the bustle of visitors.
Hurricanes, earthquakes, political scandals, and the pandemic have all contributed. To an island that has been bankrupt for almost four years. Still, there are critics: Some rules only apply to new inhabitants, excluding lifelong islanders. Some are wary of welcoming the new wealthy residents. Fearing the influx of income will aggravate inequality and social strife. Already, real estate prices have risen to “absurd” levels.
During the 2017 crypto bull run, many investors wanted to relocate to Puerto Rico. Before the market crashed, Mendez said. The Individual Investors Act, which exempts new residents from paying capital gains taxes. Has also received over 1,200 applications this year, a record. This year, mainland Americans seeking Puerto Rico’s tax incentives a Crypto island paradise surged.
The Exports Services Act approved 274 more corporations, LLCs, partnerships. And other entities for a 4% corporate tax rate and a 100% dividend exemption. Puerto Rico’s Tax Break Act 60 was also enacted in 2019 to attract investment. From bitcoin, banking, technology and other areas.
The crypto swarm has gathered in three coastal regions.
There’s Bahia, 26 miles east of San Juan, and Dorado Beach, 23 miles west. People wanting also a more urban lifestyle have chosen Condado. A luxury residential and commercial district in San Juan.
“There are restaurants, coffee shops, and a mall,” said Brent Johnson. CEO of San Francisco-based asset management firm Santiago Capital. “A mini-Miami.”
Johnson has met people in the real estate, pharmaceutical, energy. And agricultural sectors while in Puerto Rico.
“I felt like I could come here, do my job. And yet also be connected to the financial community,” he added.
Moreover, “Living in Bahia is like living in a rainforest,” Emtman added. There’s nothing like a tropical rainforest for a workout. After dark, the sports are replaced by alcohol.
You wind yourself having a meal or a drink at someone’s residence. Because of the inviting demeanor and friendliness of individuals.
Brent James, an Atlanta-based crypto investor, came to Puerto Rico in 2018 and a Crypto island paradise.
Johnson was biking when he saw him two months ago while eating tacos in Condado. Johnson’s Twitter account was familiar to James.
“I call his name and he walks over and we start talking,” James added. Johnson also invited him to a small gathering. Where they discussed potential business ventures.
“The island craves education and opportunity,” James remarked.