The Florida Citadel effect: attraction for businesses and sports enthusiasts
Favourable tax rates and a burgeoning sports scene is pulling investment into the panhandle state.
2 minutes to read
We delve deeper into Florida's corporate landscape and vibrant sports scene as part of the Florida Market Insight Q4 2023 Report.
With a competitive tax rate and the relocation of major companies like Citadel, Microsoft, and Goldman Sachs, Florida is becoming a go-to destination for corporate headquarters.
Miami's rise as an international sports capital, highlighted by Lionel Messi's signing with Inter Miami, adds to the city's appeal. As Florida continues to attract high-income households and implement climate resilience strategies, its property market is set to flourish.
The Citadel Effect: Florida's corporate attraction
Florida's competitive corporate tax rate of 5.5% has sparked the relocation and expansion of major companies across diverse sectors. This trend, commonly known as the 'Citadel Effect,' was initiated by the relocation of the US$59 billion hedge fund, Citadel, run by Ken Griffin, from Chicago to Florida.
Encouraged by lower crime rates and favourable tax conditions, other industry giants like Microsoft, Blackstone, and Goldman Sachs have followed suit, reaffirming Florida's status as a go-to destination for corporate headquarters.
Jeff Bezos is in hot pursuit, announcing he is also heading to Miami to be closer to Cape Canaveral, the headquarters for his space exploration company.
Florida state taxes
• 0% Income tax
• 0% Pension income
• 0% Inheritance/estate tax
• 0% Capital gains tax
• 5.5% Corporate tax
Source: Florida Department of Revenue
Miami: A thriving, global sporting hub
Miami's transformation into an international sports capital has been further solidified by Lionel Messi's signing with Inter Miami, in part orchestrated by part owner David Beckham, elevating the city's status in the sports world.
The city already hosts a Formula 1 Motor racing circuit, the Miami Open Tennis as well as key basketball and hockey franchises.
As anticipation for the 2026 World Cup grows, FIFA is planning to establish offices in Miami, a move that will significantly contribute to the city's economic growth. Residential developments that offer world-class sporting facilities, such as Shell Bay at Hallandale Beach, are attracting an expanding group of health-conscious buyers who value an active lifestyle.
Looking ahead: Florida's promising outlook
Despite challenges related to economic volatility and climate change, Florida continues to attract high-income households due to its appealing lifestyle and low tax rates.
As policymakers worldwide grapple with fiscal deficits, Florida has a competitive edge over other locations. Moreover, initiatives like the Miami Forever Climate Ready strategy are delivering a promising outlook by ensuring smart infrastructure development and promoting adaptive neighbourhoods to protect against rising sea levels.
By capitalizing on these strengths, Florida's property market is poised to flourish further as a prime location for both migration and real estate investment.
With its blend of economic opportunities, natural beauty, and a diverse range of attractions, Florida offers a compelling and promising landscape for those seeking high-end luxury living.