How crypto tax works in Puerto Rico
Act 60 grants bona fide Puerto Rican residents 0% on Puerto Rico-sourced crypto gains, including disposals, staking, and mining for individuals meeting presence and connection tests.
Sourcing decides access: pre-move appreciation stays US-taxable, so sell-and-rebuy strategies precede relocation for clean breaks.
Corporate mining and staking take 4% business rates, annual donations and filings condition decrees, and IRS interplay governs exit years.
Tax rates at a glance
- Investor gains
- 0% (PR-sourced)
- Sourcing test
- Strict
- Corporate mining
- 4%
- Donation duty
- USD 10,000
- Pre-move gains
- US-taxable
- IVU on sales
- Separate
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Relocating holdersActive tradersMinersFund managersExpats
Watch out for
- Sourcing is the entire case: pre-move appreciation stays with the IRS, so relocation without re-basing wastes the decree.
- Bona fide residence needs presence plus connections, donations, filings, and business substance that part-year movers underestimate.
- Federal exit mechanics tax the departure year, which makes move timing as important as holding strategy.
- Corporate 4% covers business mining and staking, not personal disposals, so entity choice changes outcomes completely.
Frequently asked questions
Is crypto tax-free in Puerto Rico?
Puerto Rico-sourced gains are 0% for bona fide Act 60 residents. Pre-move appreciation stays US-taxable, and sourcing tests decide every position.
What does bona fide residence require?
Presence tests plus closer connections, annual donations, filings, and decree compliance. Part-year or paper moves fail under review.
How should movers handle existing gains?
Sell-and-rebuy strategies before relocation re-base cost under clean breaks, so later disposals source to Puerto Rico.