Being a tax haven is a great way to generate investment revenues as a country.
After all, the best exports are those you don’t even have to ship!
El Salvador made headlines again this week when President Nayib Bukele announced that there will be no capital gains or income taxes for Bitcoin investors in El Salvador.
This is in addition to other tax perks already enjoyed in the small Central American country.
The announcement came as a PR initiative meant to spur foreign direct investment into El Salvador according to Coin Telegraph:
“If a person has assets in Bitcoin and makes high profits, there will be no tax. This is done obviously to encourage foreign investment,” Argueta said, adding that El Salvador will impose no taxes on “either the capital increase or the income.”
Argueta reportedly noted that the Salvadoran government would be actively tracing Bitcoin transactions on El Salvador’s official BTC wallet, Chivo, to combat the potentially illegal use of the cryptocurrency. “We are implementing a series of recommendations from international institutions against money laundering,” he said.
JUST IN – El Salvador to exempt foreign investors from tax on #Bitcoin profits.
“There will be no taxes to pay on either the capital increase or the income.” pic.twitter.com/c8KV655eU8
— Bitcoin Magazine (@BitcoinMagazine) September 13, 2021
This is a clever step for El Salvador! #bitcoin https://t.co/mH4IaFfHW5
— Lark Davis (@TheCryptoLark) September 14, 2021
Crypto Slate explains:
El Salvador is a small nation in South America, known mainly for its coffee, tourism, and manufacturing industry. The past weekend, however, saw president Bukele publicly announce his intention to float a Bitcoin-friendly bill to Congress, one that sees the world’s largest cryptocurrency (by market cap) become ‘legal tender’ in the country.
But that’s not all. As per Bukele’s tweet, those interested in moving to the country can expect a bunch of other benefits. “Great weather, world-class surfing beaches, beachfront properties for sale. One of the few countries in the world with no property tax.
El Salvador will exempt foreign investors from taxes on profits on #bitcoin in the country.
“If a person has assets in bitcoin and makes high profits, there will be no tax,” said Javier Argueta, legal adviser to President Nayib Bukele. pic.twitter.com/H2XHVcuOrQ
— Bloqport (@Bloqport) September 13, 2021
El Salvador is playing chess, not checkers, with $BTC, "If a person has assets in bitcoin & makes high profits, there will be no tax. This (is done) obviously to encourage foreign investment…no taxes to pay on either the capital increase or the income"https://t.co/wjUL0ldbRT
— Rstew (@Rstew12) September 13, 2021
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