Why Jeff Bezos's Shift To Sunny Miami Could Be A Smart Tax Savings Strategy

Jeff Bezos has revealed his decision to relocate from Seattle to Miami, prompting discussions about the potential tax implications of this move for the billionaire.

What Happened: Amazon founder Bezos made headlines this week after announcing his decision to leave Seattle and make Miami his new home. 

While Bezos cited the desire to be closer to his parents as the primary reason for this move, many financial experts are speculating that there’s more to the story.

Miami, known for its warm climate and beautiful beaches, is also famous for its tax-friendly environment, making it an attractive destination for high-net-worth individuals seeking to optimize their tax strategies, reported Business Insider. 

According to the report, tech billionaires like Bezos, whose wealth is primarily tied up in stocks and investments, pay close attention to capital gains tax rates. 

See Also: Jeff Bezos Says Amazon Customers Are Always ‘Dissatisfied’ And Crave Something Better — Even When They Don’t Know It

Florida has no state income tax or capital gains tax, a significant contrast to Washington, which recently introduced a 7% capital gains tax.

The Amazon founder and former CEO, who has sold about 2.1 million company shares this year, could potentially save millions in capital gains tax by relocating to Miami. 

With his substantial holdings in Amazon, estimated at 990 million shares worth approximately $137 billion, the potential tax savings become even more substantial, the report noted. 

Why It's Important: It was previously reported that Bezos committed to a $79 million purchase of a seven-bedroom estate on Indian Creek, an artificial island near Miami. In June earlier this year, he acquired the property adjacent to this mansion for $68 million.

Moreover, Miami has become a preferred location for entrepreneurs and prominent individuals. 

Notable figures such as hedge fund magnates Ken Griffin, Dan Loeb, and Josh Harris, along with soccer sensation Lionel Messi, have also invested in lavish Miami residences.

Check out more of Benzinga's Consumer Tech coverage by following this link.

Read Next: Amazon Alexa Under Scrutiny As Democrats Write Letter To Jeff Bezos Expressing ‘Serious Concern’ About Election Misinformation

Photo by lev radin on Shutterstock