MIAMI.- The founder of Amazon, Jeff Bezos, left Seattle, the city where he created his e-commerce empire almost 30 years ago, to settle in Miami, the capital of the sun and also of big business. But what is behind this move?
Bezos explained on his Instagram account that the decision was due to the fact that he wants to be closer to his parents, who moved to Florida, and the headquarters of Blue Origin, his space exploration company, located in Cape Canaveral.
However, the move also has a tax appeal for the second richest man in the world, with a fortune estimated at $161 billion.
Florida has no state income tax nor tax on capital gains, which could mean savings of about $600 million from the sale of Amazon shares, according to some analysts.
Last week, Bezos announced in a filing with the U.S. Securities and Exchange Commission (SEC) that he plans to sell about 50 million Amazon shares worth an estimated $8.4 billion.
Jeff Bezos’ financial motivation
Official records show that Bezos has sold 12 million shares of his online retail emporium worth about $2 billion.
Had the mogul still lived in Washington state, where a 7% capital gains tax was enacted in 2022, that transaction alone would have cost Bezos $140 million in taxes.
Now living in Florida, if he completes his proposed global sale of 50 million shares of Amazon, Bezos could end up saving almost $600 million and in the process become the richest person in the world, according to Forbes.
Bezos and his partner, Lauren Sánchez, bought two adjoining mansions on Indian Creek, an artificial island in Biscayne Bay known as the “billionaire bunker,” for a total of $144 million.
There are neighbors of other magnatescelebrities, athletes and leaders of the entertainment industry, such as the singer Julio Iglesias, the model Adriana Lima or the former Miami Dolphins coach Don Shula.
Miami has become an increasingly popular destination for entrepreneurs and investors, for its climate, its environment and its tax system.
Other tycoons such as Elon Musk, the founder of Tesla and SpaceX, or Daniel Loeb, the fund manager of Third Point, have also expressed their interest in moving to the City of the Sun or opening offices in this town in South Florida.
