Hedge fund hot shot John Paulson is exploring to move to Puerto Pico, where a new law would eliminate taxes on gains from $9.5 billion he has invested on his own hedge funds.
John Paulson who has been living ion New York almost all his life might be putting his New York UES apartment into market soon as he is considering moving to Puerto Rico. Paulson also has another NYC property in midtown 26th floor apartment in Olympic Tower. Find out more about John Paulson’s real estate.
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 $5 million.
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. “While we have looked at real estate investments in Puerto Rico, we have not made any investments,” Paulson & Co. said in a statement.
The hedge fund firm is one of the largest holders of Popular Inc., which owns the biggest lender in Puerto Rico, and it runs a $300 million real estate fund that has properties in Florida, Nevada, Arizona, California, Colorado and Hawaii.
Bloomberg reported that ealthy individuals in the U.S. and Europe are relocating as governments raise taxes on top earners to shrink budget deficits that have become unsustainable after the 2007-2009 financial crisis. Actor Gerard Depardieu left France last year for Belgium and billionaire Bernard Arnault, who runs LVMH Moet Hennessy Louis Vuitton SA (MC), applied for Belgian nationality, after President Francois Hollande sought to introduce a 75 percent tax on millionaires. BlueCrest Capital Management Ltd. and Brevan Howard Asset Management LLP opened or expanded offices in Switzerland in the past three years after Britain raised taxes on the wealthy.
Paulson hedge fund executives, too, have already taken steps that may allow them to pay lower taxes. Last year, they put about $450 million into a new Bermuda reinsurance company that in turn invested all of its assets in Paulson & Co. funds. The structure positions them to defer any taxes on investment income from the funds for years, and to pay only the lower capital gains rate when they do.