Another tremendous financial stalwart in the financial industry is considering moving to the Sunshine State. Goldman Sachs, one of Wall Street’s most renowned companies, is thinking about moving part of its operation to Florida, following the steps of many other companies and millionaires, trying to escape from the high-tax New York State.
Goldman Sachs follows in the footsteps of other big names in the financial sector and considers creating, at least at the beginning, an arm of its operations in the Sunshine State.
The leading global investment banking’s success in operating remotely during the pandemic has convinced bank leaders to transfer more functions from the New York area to save costs. Many companies already considered change before the pandemic. With the “forced” implementation of remote work, they realized that the movement is not as complicated as they imagined. The pandemic ended up precipitating the decision.
It is not the first time Goldman Sachs migrate part of its operations to other states. The company already has branches in Dallas and Salt Lake City.
Why companies and high-net-worth individuals are leaving New York and moving to Florida?
NY is a state of very high taxation! And in Florida, there is no state income tax. Companies and banks are moving, but high-net-worth individuals have also moved their homes to Florida cities.
Taxes are not the only reason! Although saving money is the main one, Florida’s lifestyle is also appealing to many financial players, who may still work with East Coast hours while enjoying good weather year-round at large and luxury condos near the beach. Florida is not so congested as New York, which is a massive benefit in pandemic times (less risk of contagion). The result will be a better quality of life for partners, employees, and collaborators.
The fact that Goldman Sachs is considering going out of New York raises a political issue. New York City is going through a budget shortfall since many companies, and wealthy people leave the state. Loss in taxes can influence mayoral dispute next year.
More companies and wealthy people heading to Florida mean more investments and appreciation of Real Estate.
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