Puerto Rico Crypto Tax Bill: Impact on Investors Looms as Bill Proposed

A new bill proposing significant changes to the tax landscape for cryptocurrency investors in Puerto Rico is creating uncertainty and concern for those who have opted for the island’s favorable tax status. Introduced by Representative Nydia Velázquez, this legislation would impose U.S. federal income tax on crypto-related income earned by residents of Puerto Rico, potentially ending a long-standing exemption for those involved in digital asset activities. The bill’s aim is to address lost revenue through the current favorable tax exemptions for crypto investors who have established residency in Puerto Rico.