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Author: Admin | 2025-04-28
You from the usual tax implications with the IRS.Short- and long-term crypto tradesA move to Puerto Rico is a serious undertaking, so anyone considering this should know they intend to remain in crypto for the long-term. That noted, once you’ve successfully relocated, the benefits for those actively in crypto are enormous, especially for those who actively trade and would otherwise be subjected to short-term capital gains.Bitcoin miningPuerto Rico recently extended the 4% tax incentive to crypto assets and blockchain activities, including staking and mining. This means blockchain technology, including assets based on blockchain tech and validation, fall under the crypto taxes Puerto Rico incentive code. Certain businesses that provide digital assets and blockchain activities will qualify for the “export service incentive” and a 4% corporate tax rate.Crypto staking and lendingAs with Bitcoin mining, businesses in Puerto Rico can qualify for a 4% corporate tax rate on crypto staking and lending activities, making Puerto Rico a desirable location and hub for crypto activity for the foreseeable future. Individuals involved in crypto staking and lending who are bona fide residents should anticipate a 0% tax rate. However it should be noted if your crypto activity could be considered “business activity,” you may be subjected to the 4% rate. When in doubt, speak to a tax professional like ours at TokenTax for clarity and to remain compliant in your jurisdiction.How do you report crypto tax in Puerto Rico?Per the IRS, US citizens and resident aliens who are not bona fide Puerto Rico residents for the entire tax year must report income worldwide on their US tax return. However, a US citizen who changes residence from Puerto Rico and who was a bona fide resident for the previous two years before changing residency can exclude Puerto Rico source income attributable to the part of
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