March 12th 2024.
Miami has seen a significant rise in the number of ultrawealthy individuals calling it home, with a staggering 75% increase in millionaires over the past decade. Charlie Garcia, the managing partner at R360, a prestigious community for the ultrawealthy with an average net worth of $400 million, expressed his concern about the growing influx of billionaires to Florida. In an interview with Fortune, he stated, "The number of billionaires moving here is unprecedented and it's causing some challenges." He also added that securing dinner reservations in the city has become quite a daunting task due to the surge in wealthy residents.
According to the 2023 Wealth Report, Miami has emerged as one of the top destinations for millionaires and billionaires in the United States, with a 90% increase in millionaires in West Palm Beach and a 75% increase in Miami. The city also ranks among the top four with the highest concentration of millionaires, centi-millionaires, and billionaires. Garcia credits this rise in wealthy individuals moving to Florida to the recent tax law changes in states like Washington, which introduced a 7% capital gains tax in 2022. He explained, "It's not just about what you make or have, it's about what you can keep - every year, when you pass away, or even in case of a lawsuit."
Florida's lack of state income tax, estate tax, and capital gains tax make it a highly attractive destination for the ultrawealthy looking to preserve their fortunes. The most notable recent move to Florida is that of Jeff Bezos, who shifted from Washington to Miami. According to Fortune, the billionaire is expected to save a whopping $600 million in taxes over the next year as he sells off his stock in Amazon. While some states are imposing or considering additional taxes on the wealthy, the Sunshine State's tax-friendly policies continue to draw the ultrarich.
Barbara Goodstein, managing partner at R360's New York office, believes that tax laws alone are not enough to make someone move to a different state. She stated, "People don't just move because of tax laws; it's a complex decision." Goodstein highlights that Florida's appeal extends beyond its favorable tax policies to factors like its warm weather, housing, and cultural attractions, making it an alluring destination for the affluent.
The rise of remote work has played a significant role in Florida's population surge, providing individuals with the flexibility to relocate. But it's not just individuals; businesses are also flocking to the Sunshine State in droves. A recent analysis by HireAHelper.com revealed an 86% increase in the number of corporate headquarters established in Florida in the past 12 months, making it the state with the highest growth rate. The study further indicated that Jacksonville, Tampa, and Miami secured positions within the top 10 U.S. cities, gaining the most corporate headquarters, solidifying Florida's reputation as a business hub.
In a related development, Miami Beach recently released a public service announcement video, "breaking up" with spring breakers, urging them to visit other destinations. This move comes as no surprise, given the city's growing popularity among the wealthy, making it a hot spot for parties and lavish lifestyles.
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