Puerto Rico – The Next Home of Crypto Currency?
Could Puerto Rico be the home of Crypto Currency? According to the government that could well be the case.
Manuel Laboy, secretary of Puerto Rico’s Department of Economic Development and Commerce, announced on Thursday that it was forming an advisory council to help blockchain businesses grow.
In July 2017 they dropped their tax rate which effectively made other tax havens irrelevant. Puerto Rico’s Act 20 gets you a 4% corporate tax rate on business income earned from work performed on the island. The net profits of a business providing a service from Puerto Rico to companies or persons outside of Puerto Rico is taxed at 4%. No other tax haven can offer such a deal.
Manuel Laboy further added that there is serious demand for developers with one developer for every 14 jobs that are available.
“The government is looking for new ways to attract business,” bitcoin bull Brian Kelly told CNBC. “Cryptocurrency is a new business.”
He called Puerto Rico a “viable” place to set up shop. “As viable a place as Switzerland, as Singapore, as Hong Kong,” Kelly, founder and chief executive officer of the investment firm BKCM, said on “Fast Money.”
Puerto Rico also offers the ability for companies to run Crypto based operations without government regulation or requirement that the companies hand over customer data for taxation purposes.
So as other companies bring in regulation will the industry just move to Puerto Rico?