The latest bull run has undoubtedly increased the number of Bitcoin millionaires.
A number of concerns have arisen for investors who have profited from the digital asset, including taxation issues. The climate is one reason why so many billionaires are fleeing to states with lower tax rates.
Bitcoin Billionaires on Puerto Rico
Bitcoin billionaires are flocking to Puerto Rico and its stunning islands, according to a new story from CNBC. David Johnson, 36, tells why he and his family relocated from Canada to the United States. The tropical warmth and tax incentives for anyone staying 183 days or more intrigued the entrepreneur.
According to Johnson, he made the decision to relocate because all of his buddies had made the same move. The 36-year-old former New Yorker said that his former New York City friends had moved to Puerto Rico.
All my buddies are there. He has no friends left in New York, and the epidemic may have been a factor. Every one of them has relocated to Puerto Rico, according to Johnson.
Individuals who spend a significant amount of time and money in Puerto Rico might benefit from additional financial incentives. One of the possibilities is that they were able to keep their American passports.
Locals Aren’t Feeling It
The relocation to the idyllic tropical paradise displeased locals in Puerto Rico. However, This isn’t a national issue because natives aren’t eligible for identical tax reductions as non-Puerto Rican visitors.
Residents in other states who earn a fortune in bitcoin (BTC) or crypto are exempt from capital gains taxes. Puerto Ricans, on the other hand, are subject to a long-term capital gains tax of up to 15%.
Due to this misalignment, the local and non-local groups are now at odds. Hence, residents are taking advantage of these tax exemptions to avoid paying capital gains tax.
As new wealthy residents move in, property values are rising along with them. According to Luxury Collection Real Estate’s Diaz Fournier, increased demand has resulted in record prices. Despite following the markets for several years, the market suprised Fournier.
