When Facebook newsmaker Francis Hougen failed to persuade lawmakers around the world to regulate the former employer, he was probably living on his new home in Puerto Rico at the expense of low-income cryptocurrency earnings.
“In the near future, I’m fine because I bought the crypto on time,” Hougen said in an interview with the New York Times published on Sunday, asking how he supported himself after leaving Facebook.
His move to Puerto Rico in March was prompted by his desire and health to join the island’s “crypto friends,” Hougen added.
Puerto Rico – The U.S. region, famous for its beaches, rainforests and Spanish colonial architecture, has recently become a hub for cryptocurrency investors like Haugen as it has tax haven status.
Under Act 22, people living in Puerto Rico for at least half a year are exempt from interest, dividends and capital gains taxes, meaning they can cash in on income from crypto and other investments without paying their uncle. Sem.
In recent years, the Pantera Capital hedge fund and SuperRare cryptocurrencies in the NFT market have moved from New York and Silicon Valley to Puerto Rico to take advantage of tax legislation.
Other crypto-investors made cash during the crypto-boom period and used their non-taxable income to buy property from San Juan with the intention of building a new society called Puertopia.
YouTube star and cryptocurrency investor Logan Paul also moved into the country earlier this year and rented out his home for about $ 55,000 a month – Paul said his admission was largely due to the country’s tax policy.
“In Puerto Rico, as a result, you are encouraged to work harder and make more money,” Paul said, according to Time.
The area’s tax legislation has also attracted more interest from traditional financiers, including John Paulson, the legendary manager of a hedge fund that moved to the island in 2013 for tax reasons.
While proponents of tax breaks in Puerto Rico argue that they bring much-needed investment to an island that lags behind the U.S. mainland in economic development, critics have called foreigners housing prices a modern form of colonialism.
Haugen, in an interview with the New York Times, gave little details about his crypto-investments and friends – and it is clear that Puerto Rico is eligible for tax breaks under Act 22 of the 2012 Individual Investors Act. it’s not. . “
The law stipulates that investors like Hougen must live in Puerto Rico for 183 days a year to qualify. They are also encouraged to show other proof of local residence through local bank accounts, driver’s licenses and voter registration.
Since Haugen moved to Puerto Rico in March and traveled to Washington, DC, and London to meet with lawmakers and testify on Facebook, he may not spend enough days on the island to be released.
Bill Burton, a former spokesman for the Obama administration who has been assisting Houghen in media relations, did not immediately respond to calls for comment.