When you hear Puerto Rico Act 60, a set of tax incentives created by the Puerto Rican government to attract foreign investors and remote workers. Also known as Act 20/60, it lets qualifying individuals pay as little as 0% in federal income tax, 4% in corporate tax, and 0% on capital gains—all while living on a tropical island with no state income tax. This isn’t a loophole. It’s a legal, government-backed program that’s been around since 2012 and has drawn thousands of crypto founders, traders, and digital nomads to the island.
What makes Act 60 different from other offshore options? It’s not just about low taxes. You get full U.S. citizenship, access to U.S. banking, and no need to renounce your passport. Unlike moving to the Cayman Islands or Switzerland, you can still use your American credit cards, send money through PayPal, and file taxes with the IRS if needed. The catch? You have to move there. No more working from your couch in California and claiming Puerto Rico as your tax home. You need to become a bona fide resident—spend at least 183 days a year on the island, establish a local address, and stop being a tax resident of any other U.S. state.
Many people use Act 60 to hold crypto long-term. If you buy Bitcoin or Ethereum before moving and sell after becoming a resident, you pay zero capital gains tax. That’s not speculation—it’s the law. Some traders set up LLCs under Act 60 to handle DeFi earnings, NFT sales, or staking rewards, cutting their tax bill from 37% down to 4%. It’s why you’ll find crypto meetups in San Juan, not just in Austin or Berlin. The island even has local crypto ATMs and exchanges that cater to residents.
It’s not for everyone. You need to plan ahead. Getting approved takes months. You need a lawyer who knows the process. And once you’re in, you can’t just leave for a year and expect to keep the benefits. But for those who make the move, the financial freedom is real. You’re not hiding money. You’re legally keeping more of it.
Below, you’ll find real-world breakdowns of how people use Act 60 to reduce taxes on crypto, what the residency rules actually mean, and how it compares to other tax havens. No fluff. Just what works.
Learn how to legally reduce or eliminate crypto taxes using citizenship and residency by investment programs like Puerto Rico Act 60 and Malta's GRP - without renouncing U.S. citizenship. Discover the real costs, risks, and steps to take.
