High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights.
http://www.ft.com/cms/s/0/1bc02936-8a65-11e2-bf79-00144feabdc0.html#ixzz2NHFtWHCpMarch 11, 2013 7:26 pm
Paulson eyes Puerto Rico tax haven move
By Dan McCrum in New York
Billionaire John Paulson has explored abandoning his native New York for the tropics of Puerto Rico as he tries to shield his fortune from US tax collectors.
The Queens-born hedge fund manager considered the option, according to people familiar with the situation, after Puerto Rico passed a law designed to encourage the rich to relocate to a Caribbean island that is not traditionally considered a tax haven.
It comes as a US tax break for alternative asset management partnerships, known as “carried interest”, may be eliminated this year as part of congressional budget wrangling.
US citizens such as Mr Paulson, who is worth an estimated $11.2bn according to latest Forbes rich list, are normally taxed on their worldwide income even if they live in another country.
But under the Puerto Rico law, new immigrants who have not lived in the unincorporated US territory in the previous 15 years may be exempt from US taxes on capital gains accrued after they move there, in addition to income derived from Puerto Rican domiciled businesses.
To take advantage of the new law a person must spend at least 183 days in Puerto Rico each year, and prove they have substantial family and social connections on the island.
According to Bloomberg, which first reported Mr Paulson’s of the possible move, 10 wealthy individuals have already located to Puerto Rico to take advantage of the tax break, and 40 more are in discussion with the government.
http://www.ft.com/intl/cms/s/0/1bc02936-8a65-11e2-bf79-00144feabdc0.html#axzz2NHFRRhC0 
Logged
