Puerto Rico’s 2025 Crypto Boom: The Ultimate Tax Haven for Digital Assets

Puerto Rico slashes taxes to zero for crypto investors—while Wall Street scrambles to keep up.

The Caribbean paradise isn't just for beachgoers anymore. With capital gains taxes waived and no federal income tax on crypto earnings, Puerto Rico's Act 22 has turned the island into a magnet for Bitcoin whales and DeFi degens alike.

How it works: Hold your tokens for a year? Pay 0% on profits. Run a blockchain startup? 4% corporate tax beats Silicon Valley's bite. Just don't forget the sunscreen—and a good accountant.

The catch? You'll need to prove 'bona fide residency' (read: actually live there). But with St. Regis condos accepting ETH for rent and crypto meetups replacing salsa nights, that's hardly punishment.

Wall Street's response? A mix of envy and vintage 'this time it's different' hand-wringing. Meanwhile, Puerto Rican officials quietly count their tax revenue—paid entirely in stablecoins.

Puerto Rico is also known as a powerful ‘crypto utopia’. It is considered one of the most crypto-friendly environments for its unique tax regimes. The nation has earned the title of ‘hub for cryptocurrency enthusiasts’ as people from across the world are moving to Puerto Rico to take advantage of its favorable cryptocurrency policies. With its light but appropriate crypto laws, Puerto Rico is attracting individuals seeking to build blockchain-based businesses. 

Table of contents

• Crypto Regulations in Puerto Rico
• What is the Puerto Rico Government Saying About Crypto
• Crypto License in Puerto Rico
• Crypto Tax in Puerto Rico
• Conclusion
• FAQs

Crypto Regulations in Puerto Rico

• No additional laws: As of 2025, Puerto Rico has not implemented any new laws regarding cryptocurrencies. There are some already existing crypto regulations ongoing, like Bona Fide Tax. According to this bill, individuals who meet the specifications for Puerto Rico residents can enjoy 0% capital tax gains on cryptocurrency trades in Puerto Rico. 

• Fair trade policy: In April 2025, US Congresswoman Nydia M. Velázquez introduced the ‘Fair Taxation of Digital Assets in Puerto Rico Act’ to end the tax-free crypto regime. However, Puerto Rico’s governor, Jennifer Gonzalez-Colon, counter-proposed this act by extending Act 60 until 2055. 

Puerto Rico is set to lose $4.5B by 2026 from tax breaks for wealthy investors, while costs rise & locals are pushed out.

My bill will close loopholes for digital assets & end PR’s crypto tax haven status.

This bill will help Puerto Ricans shape their own economic future. https://t.co/LM8aLnT6Ep

• AML: Since Puerto Rico is considered a US territory, it is obligated to comply with anti-money laundering (AML) and Foreign Account Tax Compliance Act (FATCA) policies in crypto engagements. 

What is the Puerto Rico Government Saying About Crypto

• The Office of the Commissioner of Financial Institutions (OCFI):  The primary body overseeing crypto activities in Puerto Rico. Under Act 273, the OCFI authorizes the VASP operations. In Virtual Asset Service Providers, it handles risk management frameworks and licenses. 

• Federal Regulators: As a US territory, Puerto Rico is also subject to the Securities and Exchange Commission (SEC) and the Financial Crimes Enforcement Network (FinCEN). 

Democratic lawmakers have introduced a bill to block investors from using Puerto Rico as a cryptocurrency tax haven https://t.co/L0mNQtgUuA

• Recently, the Puerto Rico government decided to extend the tax haven status, renouncing the US Congresswoman’s new bill announcement.  

Crypto License in Puerto Rico 

Wallet providers, crypto exchanges, and companies involved with cryptocurrencies are required to register as Money Services Businesses (MSBs) with the US Financial Crimes Enforcement Network (FinCEN). 

Licensing Requirement Under Act 136-2010 is essential for – crypto exchanges, stablecoin issuers, wallet providers with transfer functionality, and operators of Bitcoin Teller Machines (BTM).

The Office of the Commissioner of the Financial Institutions (OCFI) is the primary body providing the licences. It is essential for all entities to comply with anti-money laundering (AML) and know your customer (KYC) policies. 

Applicants are required to submit their detailed applications through the Nationwide Multistate Financial System (NMLS). 

Minimum net worth to acquire a license is $500,000; minimum liquid assets required to be: $100,000; Surety bond: $500,000 for one office, plus $10,000 per additional location

Crypto Tax in Puerto Rico

The current crypto tax jurisdiction is under Act 60. 

: No public disclosure yet, generally recognized as a crypto hub. Several factors indicate the growing crypto adoption rate in Puerto Rico.

Not disclosed yet; policies focusing on a tax-free regime with safety and transparency on crypto activities. 

Conclusion

While Puerto Rico offers a tax-friendly environment for its citizens, it is important to note that the country does not have a separate tax law for crypto. All the crypto regulations are included in the federal law designed to maintain the local scenario of the country. It is crucial to understand that, if the residency requirements are not met in Puerto Rico, an individual may be subject to tax liabilities, fines, and penalties. 

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FAQs

Yes, crypto is allowed in Puerto Rico and widely used under favorable tax laws like Act 60, making it a popular crypto-friendly hub.

The Office of the Commissioner of Financial Institutions (OCFI) handles VASP licensing; SEC and FinCEN also have authority.

Yes, if they become bona fide residents and meet Act 60 rules, post-move crypto gains are exempt from U.S. capital gains tax.

If you qualify as a Puerto Rico resident under Act 60, you pay 0% on capital gains and 4% on corporate crypto income.