November 5, 2020

Florida Investment Profile | Ideal for Everyone

Whether you’re an investor, business owner, tourist, retiree, student, or snowbird, there’s something waiting for you here in Florida.

Let’s discover why.

WHY AMERICANS AND INTERNATIONAL INVESTORS ARE MOVING TO FLORIDA

Fantastic Year Round Weather
Countless Tourist Attractions
Low Sales and Corporate Taxes
Lucrative Real Estate Opportunities
Low Cost of Living
Ease of Business Start-up
Access to Good Education

The majority of the year is sunny and warm. Most of Florida has 2 seasons, Summer/Fall and Winter/Spring.

Of course, the beaches are fantastic. And you can vacation where you live.

Many cities in the state offer an affordable cost of living to their residents. For example, the cost of the median home in Jacksonville, with less than $200,000 you can own a 3 bed and 2 bathroom house, more than half of the city’s residents own homes.

Financial incentives abound for business owners in Florida. There’s no state income tax, for instance, which means you’ll keep more of your profits. The state government also offers a variety of financial incentives and tax write-offs for particular lines of business.

Florida ranks 5th in the nation for venture capital funding. In 2018 alone, startups in the state received over $500 million in seed capital.

Tourism and real estate are the biggest markets in Florida earning billions of dollars per year. But according to the Florida Economic Development Council, aerospace and aviation, manufacturing, security, information technology, and life sciences are currently the strongest segments of the state’s economy. Categories as construction, retail, and consulting are Florida’s fastest-growing industries.

If you decide to open a business in Florida, you’ll find yourself in excellent company. Florida is home to the fourth-largest economy in the nation, small businesses make up 99.8% of all businesses in the state.

FLORIDA TAX CLIMATE FAVORS BUSINESS OWNERS AND RESIDENTS

NO corporate income tax on limited partnerships
NO corporate income tax on sub-chapter S-corps
NO state personal income tax guaranteed by constitutional provision
NO corporate franchise tax on capital stock
NO state-level property tax assessed
NO property tax on business inventories
NO property tax on goods-in-transit for up to 180 days
NO sales and use tax on goods manufactured or produced in Florida for export outside the state
NO sales tax on purchases of raw materials incorporated in a final product for resale, including non-reusable containers or packaging
NO sales/use tax on co-generation of electricity

High-net-worth individuals and families from high-tax states like New York, New Jersey, California, and Illinois are to moving to the Miami area to take advantage of Florida’s status as a no-income-tax state.

Millionaires from New York can save up to $1 million in taxes a year by relocating to Florida. Since 2017 tax overhaul capped the amount of state and local tax deductions at $10,000 which hit wealthy homeowners in high-tax states like New York and California particularly hard and prompted many to relocate to Florida.

For example, a New Yorker who makes $10 million a year and owns a $10 million home would save almost $1,2 million in taxes by relocating to Florida.

Also, residential and commercial properties down in Florida are more affordable than properties in New York, California, or Colorado.

REAL ESTATE COST PER SQ. FT FLORIDA vs OTHER STATES

The price per square foot in Florida is one of the lowest in the country.

Florida $120 Per Sq/ft
New York $179 Per Sq/ft
California $256 Per Sq/ft
Massachusetts $208 Per Sq/ft
Illinois $123 Per Sq/ft
Colorado $164 Per Sq/ft
Washington $157 Per Sq/ft
Oregon $160 Per Sq/ft
Alaska $165 Per Sq/ft

https://baicapital.com/what-really-makes-the-florida-real-estate-market-unique/

COST OF LIVING: FLORIDA vs CALIFORNIA

Miami cost of living is 22% lower than in Los Angeles.
Housing takes up 38% of income in Miami. A Median 2-bedroom apartment for rent in LA is somewhere around $2800 vs $2100 in Miami. You can buy a house in LA for $830,000 vs $450,000 in Miami.
Transportation is cheaper in Florida. A gallon of regular gas in LA is, average, $3.70 vs $2.60 in Miami.
Food, entertainment, and healthcare costs are more affordable in Florida in comparison to California.