After 34 years in Seattle, Jeff Bezos, the founder of Amazon, is embarking on a significant life change by relocating to Miami. The billionaire shared this personal transition in a heartfelt Instagram post, reminiscing about the early days when Amazon was just a small startup operating from his garage in Bellevue, Seattle. Bezos cited a desire to be closer to his parents, his partner Lauren Sanchez, and Cape Canaveral, where his space exploration venture, Blue Origin, is increasingly centered. This emotional move signifies a new chapter in his life, leaving behind a city that played a pivotal role in Amazon’s growth.
Seattle has been closely associated with Amazon since its inception in 1994, contributing to the city’s transformation into a vibrant technology hub. Bezos served as Amazon’s CEO until 2021, and his decision to step down allowed him to shift his focus to other endeavors, particularly Blue Origin, his aerospace company.
The relocation to Miami is not only a personal choice but also a strategic one. Bezos has invested in two South Florida mansions worth $79 million and $68 million, highlighting his commitment to the area. However, the move to Florida offers more than just proximity to loved ones and a beachfront lifestyle. It comes with significant financial benefits, especially in terms of taxes.
The state of Washington, where Bezos currently resides, recently introduced a 7% tax on capital gains, potentially costing wealthy individuals like Bezos millions in state taxes, given his substantial holdings in Amazon stock. According to estimates from the Washington Department of Revenue, Bezos could owe $70 million in state taxes for every billion dollars of Amazon stock he sells. In contrast, Florida stands out as one of the nine states that do not impose state income or capital gains taxes, making it an attractive destination for individuals seeking to reduce their tax liabilities.
Bezos is not the only high-profile individual making the move to Miami. Several other ultra-wealthy individuals have also chosen the Sunshine State as their new home, attracted by its favorable tax environment. Notable figures such as Ken Griffin, the wealthiest person in Illinois, have relocated their families and businesses to Miami. Griffin, a hedge fund manager, has joined the growing community of financial leaders opting for Florida’s tax-friendly policies. Additionally, hedge fund giants Dan Loeb and Josh Harris have acquired luxurious properties in Miami Beach in recent years.
As Jeff Bezos bids farewell to the city that witnessed Amazon’s remarkable journey, his decision to move to Miami underscores the significance of tax considerations in the lives of the ultra-wealthy. While personal reasons may be the driving force behind these relocations, the financial advantages offered by Florida’s tax laws play a pivotal role in the decision-making process. Bezos’ move to Miami symbolizes the evolving landscape of wealth and the choices individuals make to optimize their financial positions, while also embracing new opportunities and chapters in their lives.
