Jeff Bezos expands ‘Billionaire Bunker’: Amazon chief buys third Florida island estate for $90 million
With the recent purchase of a third opulent estate on South Florida’s Indian Creek island, Amazon titan Jeff Bezos further cements his place among the elite clientele reshaping the state’s luxury property landscape.
His latest acquisition comes hot on the heels of Bezos’ $147 million investment in two estates nestled within the exclusive Miami enclave known as “Billionaire Bunker.”
Bezos reportedly spent approximately $90 million for the six-bedroom, nine-bathroom, 12,135-square-foot property and plans to temporarily reside there as the demolition of the other houses he acquired on the island proceeds.
Indian Creek is just one of several island communities in Florida offering the pinnacle of privacy and exclusivity. With a price tag ranging anywhere from $200,000 to $200 million, some of Florida’s private islands come complete with houses, roads and amenities, while others are undeveloped.
Florida’s elite allure
Julia Roberts, Oprah Winfrey, Matt Damon and Jennifer Lopez are just a few of the rich and famous faces who call Florida home, leading to an influx of high profile, affluent individuals capitalizing on the Sunshine State’s enticing blend of tropical allure and favorable tax incentives for the wealthy.
According to the latest wealth report from Henley & Partners and New World Wealth, the millionaire population in Florida cities like West Palm Beach and Miami has surged, outpacing much of the nation.
West Palm Beach, with its 90% increase in millionaire residents over the past decade, is now home to 9,400 millionaires, including 64 centi-millionaires and six billionaires. Miami boasts 75% growth, with 38,000 millionaires, 160 centi-millionaires, and 12 billionaires, solidifying its reputation as a playground for the affluent.
Florida’s tax advantages for the affluent
Many rich and famous clientele are drawn to Florida for its significant tax implications.
Florida has no state individual income tax, no estate tax and no inheritance tax.
In January 2022, Bezos’ home state of Washington enacted a new state capital gains tax, creating a 7% tax on any gain of more than $250,000 in a calendar year from the sale or exchange of certain long-term capital assets, such as stocks.
Just before it went into effect, Bezos sold about $15.7 billion worth of Amazon stock — sidestepping approximately $1.1 billion in taxes from stock sales that would have been due under the new capital gains tax. And by moving to Florida, Bezos positions himself to save considerably on future stock sales.
Florida’s absence of a state wealth tax further sweetens the deal. According to insights from Marcum, a national accounting and advisory firm, had Bezos remained in Washington, his current net worth would have subjected him to an estimated $1.44 billion annually under the state’s proposed wealth tax — accounting for almost half of the tax’s projected revenue.
And Florida’s tax laws offer Bezos another advantage: His heirs are now insulated from Washington’s estate tax, which stands as the highest in the nation at a top rate of 20%.