Discover how crypto traders can save thousands on capital gains taxes by relocating to Puerto Rico under Act 60. Learn about the latest updates, potential savings, and what to know before making the move.

Whether you’re a full-time crypto trader or trade occasionally, the tax incentives offered in Puerto Rico under Act 60 could be a strong reason to bring your trading to the island. This article will go over the tax advantages for crypto traders, including a full breakdown of what you can expect to save by relocating to Puerto Rico.

Cryptocurrency as Capital Gains

Act 60 offers tax incentives for qualified investors and businesses relocating to Puerto Rico. As a crypto trader, you may qualify for reduced taxes on capital gains from cryptocurrency transactions by becoming a bona fide resident.

Any time you sell your crypto for a profit, that gain is taxed. In the U.S., how long you hold the asset determines the type of capital gain:

• Short-term gains: You held the crypto for less than a year. These are taxed as regular income, with rates ranging from 10% to 37%.
• Long-term gains: You held it for more than a year. These are taxed at 0%, 15%, or 20%, depending on your income level.

In Puerto Rico under Act 60, the tax rate on capital gains stays the same whether you hold the crypto for a few days or several years. This rule removes the pressure to wait for a specific holding period just to get a better tax rate.

Recent Legislative Changes

In April 2025, the governor of Puerto Rico held a press conference to announce upcoming changes to Act 60. One major update was the approval of a new 4% tax rate on capital gains.

Previously, bona fide residents of Puerto Rico who qualified under Act 60 paid 0% on capital gains from assets like cryptocurrency. However, starting with applications submitted after December 31, 2026, new residents will be subject to the new 4% capital gains tax.

While this is an increase from the former 0%, it’s still a significant savings for U.S. residents considering the move. Here’s how it compares:

• Puerto Rico (applicants after December 31, 2026): 4% tax on capital gains
• U.S. long-term capital gains: Up to 20%
• U.S. short-term capital gains: Up to 37%

Existing Act 60 beneficiaries will retain their 0% rate through the full term of their current decree.

Example: Potential Tax Savings for Crypto Traders

If you were to purchase one Bitcoin for $30,000 after establishing bona fide residency in Puerto Rico, and later sold it for $70,000, that would result in a $40,000 gain.

• In the mainland U.S., you could owe up to 20% in federal capital gains tax, which would come out to $8,000.
• In Puerto Rico, under the new legislation applying to applicants after December 31, 2026, you would owe just 4% on that $40,000 gain, totaling $1,600.

This example shows just how significant the savings can be.

Considerations Before Relocating

Here are a few things to keep in mind before relocating:

• Timing of asset acquisition: Only gains from crypto acquired after you become a resident of Puerto Rico qualify for tax exemptions.
• Recordkeeping: Keep detailed records of when you bought and sold your assets to stay compliant.
• Regulatory updates: Watch for any new laws that could impact how crypto is taxed in Puerto Rico.

Is Puerto Rico the Right Move for You?

Act 60 offers excellent tax benefits for crypto traders ready to relocate to the beautiful island of Puerto Rico. If you’re also looking for more than just tax savings—like a warm, welcoming community and year-round sunshine—Puerto Rico might be the perfect fit. Interested in learning how to navigate the Act 60 application process? Give us a call, and we’ll help you get started.