Crypto investors on the U.S. mainland face significantly higher capital gains tax rates than in Puerto Rico
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Earlier this month, Governor Jenniffer Gonzalez presented a package of measures that would extend Act 60 benefits through 2055, but also require new applicants for the incentives to pay 4% on capital gains. By contrast, cryptocurrency holders on the US mainland might pay as much as 20% and 37% on long-term and short-term capital gains, respectively, according to Velazquez’s office.
Rep. Velazquez’s office reportedly said Puerto Rico could lose roughly $4.5 billion in revenue from 2020 to 2026 due to the tax incentives in place. In contrast, Puerto Rico Governor Jenniffer González-Colón proposed extending Act 60, set to expire in 2035, to the end of 2055, but requiring applicants to be subject to a 4% capital gains tax rate, smaller than the typical range up to 37% in the US.
