Bloomberg:  Paulson Said to Explore Puerto Rico as Home With Low Tax:

John Paulson, a lifelong New Yorker, is exploring a move to Puerto Rico,
where a new law would eliminate taxes on gains from the $9.5 billion he
has invested in his own hedge funds, according to four people who have
spoken to him about a possible relocation.

Ten wealthy Americans have already taken advantage of the year-old
Puerto Rican law that lets new residents pay no local or U.S. federal
taxes on capital gains, according to Alberto Baco Bague, Secretary of
Economic Development and Commerce of Puerto Rico. The marginal tax rate
for affluent New Yorkers can exceed 50% on ordinary income. …

Paulson executives, too, have already taken steps that may allow them to pay lower taxes. Last year, they put about $450 million into a new Bermuda reinsurance company that in turn invested all of its assets in Paulson & Co. funds. The structure positions them to defer any taxes on investment income from the funds for years, and to pay only the lower capital gains rate when they do. 

(Hat Tip: Bill Turnier.)

Update: Bloomberg, How Puerto Rico Beyond IRS Attracts Paulson-Sized Riches