Many of the richest people in American have relocated to Florida, known for its lack of income taxes. Among the billionaire residents of the Sunshine State are Amazon founder Jeff Bezos and Ken Griffin, the financier behind the Citadel hedge fund.
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However, relocating for the tax savings doesn’t always pay off for the super wealthy. GOBankingRates spoke with Henry Silva, wealth management advisor at Apollon Wealth Management, about why the ultra-rich should think twice before uprooting their lives and moving to Florida.
Although Silva himself lives in Miami, he noted that moving to Florida won’t be the right choice for everyone.
“For high-net-worth families, Florida’s no state income tax alone shouldn’t be the deciding factor when considering a major relocation,” he said. “The financial picture here is far more complex than a single tax line item.”
For one, there are certain necessities high-net-worth individuals will likely pay more for in Florida.
“Home insurance premiums have skyrocketed,” Silva said. “Whether it’s clients, friends or family, nearly everyone I know has faced a significant increase in their premiums, sometimes unexpectedly. And it’s not just in Miami — this is impacting properties across the state.
“Add to that the cost of property taxes, flood zone assessments and limited public school options depending on the area, and suddenly, the move doesn’t feel quite as tax-efficient,” he said.
Silva believes that the move “has to make sense beyond taxes.”
“It should align with your lifestyle and long-term vision,” he said. “Without that, you’re just chasing trends, and trends can be expensive.”
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It’s not just costly home insurance and property taxes that potential Florida homebuyers need to be aware of.
“One of the biggest surprises, especially for folks looking to buy near the beach or in older high-rise condominiums, is the Structural Integrity Reserve Study (SIRS) requirement,” Silva said. “After the tragic Champlain Towers collapse, Florida has cracked down on how condos maintain reserves for structural repairs. Now, homeowners are suddenly being hit with massive special assessments or monthly increases to catch up.”
These extra payments are often unanticipated.
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