El Salvador, the small Central American nation that recently adopted Bitcoin (BTC) as legal tender, announced that it will not tax foreign investors’ Bitcoin profit and income.
By adopting Bitcoin, El Salvador intended primarily to battle its persistent inflation, but the government also hopes to decrease fees on money sent out of the country, primarily to the United States and other richer nations. Now, El Salvador is trying to attract companies and investors from those countries with significant Bitcoin profits and income to establish headquarters and residency in El Salvador with tax exemptions.
Currently, Puerto Rico reigns as the top location in its hemisphere for crypto investors and crypto-related investment firms to relocate and establish their headquarters. Puerto Rico is under United States jurisdiction, which makes it simpler for investors and companies located in Puerto Rico to do business with customers and companies in the US.
El Salvador may be a more attractive option for non-US citizens and companies that do not intend to do business within the United States. The list of such people and firms may be short, though, as Portugal has established itself as a top crypto tax haven in Europe.