Jeff Bezos, the billionaire founder of Amazon, is implementing a financial strategy that will allow him to save more than $610 million in taxes thanks to his move to Miami, Florida, a state with no income or capital gains taxes, according to information revealed by CNBC.
This considerable tax savings is the result of Bezos selling $2 billion worth of Amazon shares. The move comes after Bezos left Seattle, his home for 30 years, behind. The motivation for Bezos’ change of residence appears to be significantly influenced by the favorable tax regime in Florida. In 2022, Washington implemented a new 7% capital gains tax for stock or bond sales exceeding $250,000, which would have represented a new tax liability for Bezos on his stock transactions.
The news of the sale of Bezos’ shares was announced after the businessman notified the United States Securities and Exchange Commission of his plan to dispose of 50 million shares before January 31, 2025, amounting to 8.7 billion dollars at current values.
In the first $2 billion transaction made last week alone, Bezos achieved a savings of $140 million in taxes that he would have had to pay to the state of Washington. In the total sale over the next two years, the tax savings figure would be approximately $610 million or more, if the value of Amazon shares continues to increase, as confirmed by The Guardian newspaper.
In addition to tax savings, Bezos has also acquired two mansions in Indian Creek for a combined value of 147 million dollars and is in search of three additional properties on the island, known as the “bunker of the billionaires”.
Bezos’ change of residence not only appears to be motivated by tax issues, but also by personal and professional desires. He mentioned being emotionally attached to Seattle but also expressed the desire to be closer to his parents who recently returned to the Miami area. Additionally, Jeff Bezos mentioned the attractiveness of Florida for his space exploration company, Blue Origin, which is expanding its operations to Cape Canaveral.
The move to Miami, where Bezos grew up, marks a significant shift for the billionaire, both financially and personally.