El Salvador to impose no capital taxes on bitcoin gains

A day after announcing bitcoin will be a legal tender in his country, El Salvador President Nayib Bukele is throwing in an extra bonus as investors won’t be charged capital taxes on their bitcoin gains.

On his Twitter post, the president said, “No capital gains tax for bitcoin, since it will be a legal currency.” The president was actually responding to a query of Tron founder Justin Sun regarding the possibility that crypto investors will flock into the country following the historic development.

A small nation in South America, El Salvador is famous mainly for its coffee, tourism, and manufacturing industry but it made headlines following the statements of Bukele at the 2021 Bitcoin Conference in Miami.

A mountain of perks

The president said those who are interested in moving to the country will be met with other benefits such as great weather, world-class surfing beaches and beach-front properties for sale, no property tax, and immediate permanent residence for crypto entrepreneurs.

These are all in addition to being exempt on capital gains taxes involving the leading cryptocurrency by market capitalization.

Bitcoin as a legal tender

A legal tender is any coin or banknote that if offered, can be accepted as a form of payment for a debt in a country. It differs from real estate or personal assets that can’t be legally exchanged for goods and services.

Currently, bitcoin has only existed as either a property or as internet money and no country has accepted it as a legal tender, a fact that might soon be changed by El Salvador.

Speaking about the country’s decision, Strike founder Jack Mallers said, “Adopting a natively digital currency as legal tender providers El Salvador the most secure, efficient and globally integrated open payments network in the world.”

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/blockchain/el-salvador-to-impose-no-capital-taxes-on-bitcoin-gains/