John Paulson, a lifelong New Yorker, is exploring a move to Puerto Rico, where a new law would eliminate taxes on gains from the $9.5bn he has invested in his own hedge funds, according to four people who have spoken to him about a possible relocation.
Bloomberg reports that ten wealthy Americans have already taken advantage of the year-old Puerto Rican law that lets new residents pay no local or U.S. federal taxes on capital gains, according to Alberto Baco Bague, Secretary of Economic Development and Commerce of Puerto Rico.
The marginal tax rate for affluent New Yorkers can exceed 50%.
Paulson, 57, recently looked at real estate in the exclusive Condado neighborhood of San Juan, where an 8,379-square-foot penthouse, complete with six underground parking spaces, lists for $5m. The area is home to St. John’s School, a private English-language academy where he and his wife could send their two children, said the people, who asked not to be named because the discussions were private.
Paulson’s firm declined to comment on his personal plans.
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