Adam Tracy Evaluates Puerto Rico as a Cryptocurrency Tax Haven

Adam Tracy’s Crypto Country Review: Puerto Rico


Puerto Rico is the new tax haven, and it’s basically part of the United States. Section 933 of the tax code is always provided that income earned by residents of Puerto Rico is not calculable as part of gross income on your taxes. And, Puerto Rico sort of upped the ante with two laws: 1) one is Act 22, which says that you’ll pay zero capital gains on any assets acquired after moving to Puerto Rico. 2) And then Act 20, which says that the corporate tax rate for income earned within Puerto Rico is only four percent. Now if you compare this to the foreign earned income exclusion, you’re actually better off being in Puerto Rico than you are in Caymans, Belize, St. Lucia — you name it — any of your tax havens. And it’s important to note that Puerto Rico is really just the United States with exception of the fact that it has its own tax code. Right? And the ability to move there is based on our immigration laws. So you don’t need any special immigration. You can simply move there because you’re resident or citizen in United States. So it’s a phenomenal opportunity, and it’s sort of a tax holiday, meaning it’ll expire. But for crypto traders and crypto funds the Act 22 exemption, which provides for zero capital gains tax is phenomenal. It’s just phenomenal opportunity. And on the reverse, for companies that are making more than the foreign earned income exclusion — a hundred thousand year — that four percent tax rate is tough to beat, with the exception of renouncing citizenship and moving to some offshore locale permanently, which most aren’t, you know, happy to do. Puerto Rico really provides you with a phenomenal opportunity with Act 20 and 22. So if you have any questions, definitely hit me up or I’ll talk you soon.

A former professional rugby player, Adam S. Tracy brings over twenty years’ experience as an attorney, consultant and dealmaker with a particular focus on cryptocurrency, digital products, payments and immersive corporate structures. As an accomplished executive and advisor to high risk merchants and stakeholders, Adam has proven himself as a results oriented, decisive leader with proven success advising early market entrants, technology adapters, as well as established participants across a wide range of verticals. Adam Tracy’s attack-first personality allows him to excel in dynamic, demanding environments including complex corporate negotiations, distressed environments and regulatory investigations.

In addition, Adam S. Tracy also has a successful track record co-founding high risk industry ventures, building & leading cross-functional teams, and spearheading diverse corporate transactions. A serial entrepreneur, Adam has successfully started and created exits across a wide swath of markets, including various mobile SaaS ventures, nutraceuticals, peer-to-peer payment systems, and several telemarketing-based ventures. Moreover, as a recognized expert in the payments field, Adam Tracy has been a blockchain and digital currency evangelist and influencer since the early days of Bitcoin.

Utilizing his proprietary “Pre-Event Driven™” strategy for decision making, Adam S. Tracy further leverages his over twenty years’ experience to create cost-effective, value-add solutions for each client. A data-driven acolyte, Adam continually refines his strategies based on field studies and data collection. Moreover, Adam Tracy further augments his range of solutions by actively networking with regulators, liquidity providers, legal and compliance experts, deal-flow brokers, investors and management of leading high risk industry ventures.

Adam S. Tracy earned his Bachelor of Science in Computer Applications and Bachelor of Science in Finance from the University of Notre Dame. He subsequently earned his Masters in Business Administration from the DePaul Kellstadt Graduate School of Business, while concurrently earning his Juris Doctorate from the DePaul College of Law. Adam lives outside Chicago with his with his wife, four dogs, and two cats.

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