El Salvador Joins Dubai in Tech Tax Elimination, Crypto Twitter Approves

Crypto aficionados are invited to the gorgeous Latin American country to build their own business with substantial tax relief.

President Bukele emerging from a digital wormhole emitting electricity.
Created by Gabor Kovacs from DailyCoin
  • El Salvador erases all taxes related to innovation and technology.
  • Last month, President Bukele signed a digital assets license.
  • This would allow digital assets to open a $1 trillion market.

The forward-thinking nation of El Salvador has made a massive step towards becoming the most prominent crypto hub in the Americas. 

President Nayib Bukele, the pro-Bitcoin millennial ruler of the small Latin American country, signed an unprecedented document allowing tech-related businesses to pay zero taxes. In further detail, the legal document called The Innovation and Technology Manufacturing Incentives Act will relieve the duty of these types of taxes:

  • Capital gains
  • Import tariffs
  • AI programming
  • Software programming
  • Hardware manufacturing

Ultimately, this is seen as great news for the crypto industry. The most prominent crypto hub is currently Dubai, UAE, which operates in a similar legal framework. Naturally, the move by El Salvador was met with cheers and praises by the community on Crypto Twitter.

Crypto Lovers Flocking to El Salvador?

Developing a clear legal framework is crucial for a smooth transition from the legacy financial system to a Bitcoin-powered one. The El Salvadoran government has huge plans to attract institutional investors and young crypto talent and enable them to own a share of the country’s brave path to financial freedom.

For this cause, the Volcano bonds were created. Mr. Bukele recently signed a breakthrough bill allowing the issuing of Bitcoin-backed Volcano bonds. Previously, the launch was postponed, as the crypto markets were in extremely volatile conditions for most of 2022. 

However, El Salvador’s Bitcoin journey took a positive turn once Bitcoin broke through $30,000, and the country quickly paid off the $800 million maturing bond. According to the latest statement by El Salvador’s Bitcoin partner Bitfinex, the wait is not long now – the highly-anticipated BTC Volcano bonds shall erupt this summer.

On The Flipside

  • Nayib Bukele’s crypto portfolio is still $35 million down due to previous losses until May 2022.
  • El Salvador’s BTC stash increased significantly after applying Dollar Cost Average (DCA) tactics.

Why You Should Care

El Salvador is a pioneering country in adopting Bitcoin as a legal tender.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.