Monday, 24 October 2016
Last updated 1 hour ago
Mar 15 2013 | 1:10pm ET
Paulson & Co. founder John Paulson moved to stamp out rumors that he was considering a move to Puerto Rico to save money on taxes.
Paulson's hedge fund released a statement denying media reports that he might move to the U.S. territory to take advantage of a year-old law waiving local and federal capital gains taxes for new residents. The bulk of Paulson's taxes are capital gains, given the $9.5 billion he has invested in his own hedge funds.
"John Paulson, President of Paulson & Co. today announced that, in light of the media attention surrounding a relocation to Puerto Rico, he has no plans to move to Puerto Rico," the firm said. "While Mr. Paulson has considered real estate investments and has vacationed on the Island, he has no plans to establish a permanent residence there."
Paulson reportedly recently looked at residential real-estate in the exclusive Condado neighborhood of Puerto Rican capital San Juan.
Puerto Rican officials have said that 10 wealthy Americans have already taken advantage of the new law, and 40 others have spoken to the government about a move. About one-third of those are hedge fund managers, Puerto Rican Economic Development and Commerce Secretary Alberto Baco Bague said.