Florida is the third most populous state with the fourth largest economy in the United States. It offers limitless investment opportunities due to its diverse economy and steady growth of the real estate market with constantly emerging new residential developments. Combine that with flawless year-round weather and an ideal location on the Atlantic coast. All of this makes Florida one of the most desirable destinations for relocating both from other American states and from abroad.
While other states may share similar appeal and attractive features that make people want to relocate there, Florida boasts certain unique advantages, most of which cannot be found anywhere else, and they are what makes the Sunshine State one of the most desirable places to call home in the country.
Reason # 1: Florida is a tax paradise
Along with six other states, Florida does not collect individual income tax. You will still have to pay income tax to the IRS for federal taxes, but it means that you will pay less overall income tax in Florida. Collecting an individual income tax is prohibited in the Florida Constitution, so the state won’t be imposing a state individual income tax anytime in the near future since that would require a constitutional amendment. Florida’s constitution also prevents counties and municipalities from imposing any sort of income tax at local levels.
Another tax that Florida residents don’t have to pay is the death tax. While many states choose to keep the death tax revenues flowing as a part of a process known as “decoupling”, Florida remains a place where you don’t have to pay money when a family member dies.
The state also provides two property tax breaks for homeowners that declare that the home they bought in Florida is their primary “homestead” residence.
Reason # 2: You are less likely to lose money to a lawsuit or a creditor in Florida
Florida offers a number of asset protection benefits, which include but are not limited to the homestead exemption, protection of the cash value of life insurance, protection for IRAs and annuities, protection of assets held in a properly structured business entity, and more.
We will be covering those in a separate article, and will only provide a few examples of the key benefits for the real estate owners. A creditor cannot claim a resident’s home in the count of debt (excluding the cases when the creditor is the mortgage lender). There are also no constitutional limitations against foreclosure. And because the state recognizes tenancies by the entirety, this includes the resident’s spouse’s creditors as well as long as the resident is not also contractually liable for the loans. A tenancy by the entirety is a form of ownership that prevents one spouse from selling the property that is owned by both (as husband and wife are considered to be one legal entity, each has a 100% ownership interest) without another spouse’s cooperation and consent.
Reason # 3: Owning a home in Florida puts you on the entertainment map
Florida is filled with natural scenic beauty and year-round perfect weather, while the majority of high-end residences here are set close to the water, either it is the sparkling aquamarine waters of Biscayne Bay, or the boat-filled Intracoastal waterway, or any of the numerous lakes, rivers, and canals. The relaxed atmosphere of a tropical getaway is spread throughout its sophisticated gated communities with lavish townhomes, soaring futuristic high-rises nestled on immaculately landscaped green territories with oversized infinity-edge pools and state-of-the-art spas. But Florida is overwhelmingly much more than just another tropical Promised Land. Booming tourism creates a healthy market for small and large businesses together with an unmatched infrastructure that encompasses everything imaginable from luxurious shopping and fine dining to countless outdoor activities and world-famous sporting events. Each neighborhood has something unique and exquisite to offer its residents, and that makes it easy for everyone to find something for their liking.