One of the legends of today’s hedge fund industry, John Paulson, is considering leaving the US for tax reasons, a move that contrasts his behavior with that of billionaire investor Warren Buffett, who claims the highest earners should pay more tax.

Paulson, who is renowned for accurately betting against the US sub-prime mortgage market ahead of the financial crisis of 2008, is considering a move to Puerto Rico, according toThe Independent newspaper in the UK.

The move would help him avoid taxes linked to the £9.5 billion ($14.2 billion) he has invested in his own hedge funds, the newspaper said. It noted that Puerto Rico is a four-hour flight from Paulson's native New York, where the marginal tax rate for affluent residents can exceed 50 per cent on ordinary income.

A spokesman for Paulson & Co declined to comment on the matter, the report said.

As highlighted recently by legislation such as the controversial FATCA Act (Foreign Account Tax Compliance Act), the US taxes citizens on a worldwide basis regardless of where they live, contrasting with a territorial approach followed by most other jurisdictions.