Crypto Tax in Puerto Rico
Overview
Puerto Rico offers unique tax advantages for US citizens through Act 60 (formerly Acts 20 and 22), which can reduce crypto capital gains to 0% under certain conditions. Individuals who become bona fide residents of Puerto Rico can benefit from 0% capital gains tax on gains accrued after becoming a resident. Pre-move gains remain subject to US federal tax. Act 60's Export Services provision allows qualifying businesses to pay only 4% corporate tax. Puerto Rico residents are exempt from US federal income tax on Puerto Rico-sourced income but must still file US federal returns.
Key Points
0% capital gains on gains accrued after becoming PR resident, Act 60 provides individual and business tax incentives, 4% corporate tax for qualifying export services, Pre-move gains remain subject to US federal tax, Must become bona fide resident (183+ days), 10-year lookback rule on pre-move appreciation, Puerto Rico residents exempt from federal tax on PR income, Popular with US crypto entrepreneurs
Tax Rates
Post-move capital gains: 0% (Act 60 Individual Investor). Pre-move gains: US federal rates apply. Export services businesses: 4% corporate tax. Puerto Rico income tax: 0%-33% progressive (Act 60 reduces to 0% for qualifying income).
Reporting Requirements
File Puerto Rico income tax return (Form 482.0). Must still file US federal tax return (Form 1040). Report Act 60 compliance to DDEC. Annual report for Act 60 decree holders. IRS may scrutinize residency claims.
Tips & Recommendations
Only gains accrued AFTER establishing PR residency are eligible for 0% rate. Pre-existing gains are still federally taxable. Establish bona fide residency (183+ days, closer connection, tax home). The 10-year lookback applies to pre-move appreciation. Work with Act 60-experienced CPAs.
Disclaimer: This guide is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation.
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Crypto Tax in Singapore
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