Puerto Rico Extends 4% Tax Incentive to Crypto and Blockchain Activities

Staking and exporting crypto services qualify for the tax rate.

AccessTimeIconMar 1, 2023 at 4:08 p.m. UTC
Updated Mar 6, 2023 at 4:41 p.m. UTC
Drive the Crypto Policy Conversation Forward
October 24, 2023 • Convene • Washington D.C.Where the industry establishes the digital economy’s legal, regulatory and compliance best practices for the future.Register Now

Puerto Rico has extended its 4% tax incentive to crypto assets and blockchain activities, including staking.

Blockchain technology, digital assets based on blockchain technology and blockchain validation (the activity undertaken to reach a consensus on valid transactions) will now come under the incentive code, Iris Santos Diaz, acting secretary at Puerto Rico’s Department of Economic Development and Commerce, said in a letter on Feb 22.

Certain providers of digital assets and blockchain activities qualify for the “export service incentive,” which allows businesses that export a service of the Islands to benefit from a 4% corporate tax rate, a press release by the Puerto Rico Blockchain Trade Association said on Monday.

Puerto Rico has already been crowned a tax haven by crypto businesses who have sought to take advantage of the country’s policies, and so the move wasn’t necessarily unexpected. But industry lobby groups are still excited.

“A 4% tax on the income generated from staked assets is a win for Puerto Rico,” Keiko Yoshino, executive director for the Puerto Rico Blockchain Trade Association, said in the press release.

Puerto Rico is also looking at how it can generate more revenue by also taxing non-fungible tokens (NFT’s), according to a proposal last year.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Camomile Shumba

Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.