El Salvador Offers No Capital Gains Tax, Permanent Residence to Crypto Entrepreneurs
Nayib Bukele, president of El Salvador, has weighed in the future of his country now that there is a formal proposal for making Bitcoin a legal tender, announcing complementary measures. Bukele mentioned yesterday on Twitter there would be no capital gains on Bitcoin earnings, and also highlighted the possibility of offering permanent residence to crypto entrepreneurs wanting to move to the LATAM country.
El Salvador to Collect No Capital Gains on Bitcoin Earnings, Offers Permanent Residence to Crypto Entrepreneurs
Nayib Bukele, President of the Republic of El Salvador, made some interesting remarks yesterday on Twitter, where he answered some concerns and questions of people involved in cryptocurrency businesses. The young politician has put the country in the media spotlight after appearing at the 2021 Bitcoin Conference in Miami, announcing he would be introducing legislation to make Bitcoin legal tender in the country.
Bukele stated that because Bitcoin will be legal tender, there will be no capital tax gains for Bitcoin earnings, something that would entice cryptocurrency entrepreneurs and traders to bring their business to the country. In response, Tron founder Justin Sun declared his organization would be the first crypto group to establish an office in El Salvador.
But Bukele went even further, hinting that El Salvador could offer immediate residence to crypto entrepreneurs interested in coming to and investing in the country. This would make it easier for anyone wanting to build or introduce a startup in the country to set up offices faster, and with less paperwork.
While all of this might seem like just talk to some, Bukele has the power to make it real. His political party, Grand Alliance for National Unity, recently won the parliamentary elections with a staggering advantage. He controls more than 70% of the Legislative Assembly, so any law project supported by him is likely to be fast-tracked.
Bukele Plans to Offer a Safe Haven for Crypto Entrepreneurs
Contrary to the stance more and more countries are adopting about cryptocurrencies, Bukele is profiling El Salvador as a cryptocurrency-friendly country with this move. The young politician definitely has the power and disposition to do so, according to many.
With countries like the U.S. and China constantly targeting cryptocurrency startups and businesses with stringent or unclear regulatory frameworks, the proposal of El Salvador is poised to attract money from startups and projects now interested in establishing a presence in a crypto-friendly state.
This move breaks with the trend of states and nations planning their own central bank digital currencies, whose function is to be a digital complement for their existant fiat currencies. While the move is still only a proposal, it might mark a trend reversal making other countries consider adopting an already established cryptocurrency to power their economies.
It seems to be already working: Carlos Rejala, a deputy of the Paraguayan National Congress, recently stated he would be presenting a crypto-related “important project” to advance Paraguay to the forefront of world innovation.
What do you think about President Bukele’s proposals? Tell us in the comments section below.