THE PERPETUAL TRAVELER AND THE 5 FLAGS THEORY

[swanson]

THE PERPETUAL TRAVELER AND THE 5 FLAGS THEORY

I am always looking at new approaches to lifestyle and living in general. I am wondering who might have any direct experience or educated opinion on the PT concepts, and what value they may entertain for those taking a survival approach to life and living in general.

So… Who has any direct experience or an educated opinion on the 5 Flags Theory and PT?

Please share.

http://www.ptclub.com/whatispt.html

What is PT?

PT - The Perpetual Traveler

Permanent Tourist, Prior Taxpayer = Perfect Thing!

INDIVIDUAL SOVEREIGNTY

In a nutshell, a PT merely arranges his or her paperwork in such a way that all governments consider him a tourist. A person who is just "Passing Through". The advantage is that being thought of by government officials as a person who is merely "Parked Temporarily", a PT is not subjected to taxes, military service, lawsuits, or persecution for partaking in innocent but forbidden pursuits or pleasures. Unlike most citizens or subjects, the PT will not be persecuted for his beliefs or lack of them.

PT stands for many things: a PT can be a "Prior Taxpayer", "Permanent Tourist", "Practically Transparent", "Privacy Trained", "Party Thrower", "Priority Thinker", "Positive Thinker", "Prepared Totally", "Paranoid Together" or "Permanent Traveler" if he or she wants to be. The individual who is a PT can stay in one place most of the time. Or all of the time. PT is a concept, a way of life, a way of perceiving the universe and your place in it. One can be a full-time PT or a part-time PT. Some may not want to break out all at once, or become a PT at all. They just want to be aware of the possibilities, and be prepared to modify their lifestyle in the event of a crisis. Knowledge will make you sort of a PT. A "Possibility Thinker" who is "Prepared Thoroughly" for the future.

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[swanson]

THE FIVE FLAGS THEORY

http://www.global-money.com/item.php?id=42

People of intelligence and wealth associate themselves with different countries for different reasons. In PT, you can learn about Dr Hill's Five Flag Theory. Discover why no one with common sense gives all their assets or allegiance to any one flag. The Five Flag Theory will help you conduct all your PT business safely and effectively.

Flag 1: Business Base

These are places where you make your money. They must be different from your personal fiscal domicile, the place where you legally reside.

Flag 2: Passport & Citizenship

These should be from a country unconcerned about offshore citizens and what they do outside its borders.

Flag 3: Domicile

This should be a tax haven with good communications. A place where wealthy, productive people can be creative, live, relax, prosper and enjoy themselves. Such a place should not be threatened by war or revolution and preferably should enjoy good levels of banking secrecy.

Flag 4: Asset Repository

This should be a place from which assets, securities and business affairs can be managed anonymously by proxy.

 Flag 5: Playgrounds

These are places where you would actually physically spend your time.

[Hare of Caerbannog]

Wow. I just found this old thread.
If I weren't an old broken down geezer, I would pursue this concept.
Good thing I didn't read this when I was 17!

[mash]

You don't necessarily need to renounce citizenship, I am a dual citizen...

[SteveInTx]

You don't necessarily need to renounce citizenship, I am a dual citizen...

I take it you are not a US citizen then?

[mash]

Born in the USA (sung to the tune of Springsteen), live and work in Aus. I keep both passports current. My kids are all dual citizens as well. I figure the more options they have the better. Plus we go to visit Nan & Pop as often as we can afford.

http://en.wikipedia.org/wiki/Multiple_citizenship

[swanson]

I believe as things continue to spiral as they are in the States to an uncertain economic end that the PT lifestyle will become a more realistic approach an option to living a life less shackled by a nation state in decline.

Those that can entertain 5 flags should examine this option sooner rather than later.

I love my Country, but I'd like to live a reasonable life unabated by a system strangling its constituency socially and economically.

Is it me or does anyone else see the decline in freedom, finance, and free expression associated with today's State of the Union?

Get out and adventure.

Swanson

[prettytough]

I have a question with regards to the Five Flag Theory (http://en.wikipedia.org/wiki/Perpetual_traveler):

Why is it required to have a legal residency at all?

I mean why would you go through the hassle of registering (in a tax haven) at all if anyway you are travelling all the time?

In other words: You remove yourself from the register in your home country and then just travel as a tourist without a legal residency at all.

My understanding that this way my earnings wouldn't be subject to income tax anyway (unless you are US citizen where worldwide income is taxed) and that it wouldn't require a legal residency somewhere else to achieve this.

Am I missing something?

[endurance]

I have a question with regards to the Five Flag Theory (http://en.wikipedia.org/wiki/Perpetual_traveler):

Why is it required to have a legal residency at all?

I mean why would you go through the hassle of registering (in a tax haven) at all if anyway you are travelling all the time?

In other words: You remove yourself from the register in your home country and then just travel as a tourist without a legal residency at all.

My understanding that this way my earnings wouldn't be subject to income tax anyway (unless you are US citizen where worldwide income is taxed) and that it wouldn't require a legal residency somewhere else to achieve this.

Am I missing something?

Rent the movie, The Terminal.  A man without a country cannot travel.  No passport and no one will take you.  You'll be trapped where ever you are and that just might be an airport.

[prettytough]

Hi endurance. Thanks for your comment. However I disagree: residency has nothing to do with passport and/or renouncing citizenship.

Example: I'm Austrian citizen. I still have my residency registered in Austria although I haven't been living there for the last 7 years. If I "deregister" my residency in Austria - I only have to say that I'm moving abroad - then they will make a note in my passport "Abroad" in the residency field (without bothering about the exact address).

Obviously I'm still free to travel anywhere in the world. I'm still Austrian citizen and keep my passport.

My question now is: Why registering residency at all?

[Mainah]

I have nothing to add to this conversation... but am very very interested in the topic.

Thank you for bringing this up

[prettytough]

Anybody any insights into my question?

I really thinking about de-registering my residency in austria. But I'm not planning to get registered anywhere else instead. Am I liable for any income taxes (in any jurisdiction)?

[MTUCache]

I am interested in this "PT Club" and "Five Flags Theory", but I really don't see this holding up very well during a SHTF/TEOTWAWKI scenario.

First, while I'm not a big peak-oil guy, I do feel that international travel is going to revert back to the super-wealthy at some point. Being able to pay less than $1000 for nearly immediate access to any other country on the globe is not a dependable mode of transportation. Once fuel prices climb to the point where commercial air travel is no longer a viable marketplace the infrastructure for this is going to deteriorate or be snapped up quickly.

Second, as we become more and more connected to the international markets I feel that we're more likely to have a global event rather than a localized/regional event. While the physical impact of a SHTF-event may not be felt very far away, the economic impact of that event may send our already fragile worldwide economy into a tailspin very quickly. Once this happens the ideas of governments and borders start getting very fuzzy very quickly.

Sure, it would be easy right now to pick five countries that are beneficial to some aspect of your life, safe, relatively "free", and stable... but making sure you had access to them (personally and financially) is something that I'm not so sure about.

Granted... it's probably not any better to have everything physically on you, no matter how "free" or independent you feel your current situation is. There does need to be some redundancy and diversification, we talk about that all the time, I just don't see how spreading things all around the globe is going to make them much more safer at this point.

I will be reading more into these topics however... it fascinates me to imagine living that "Bourne" lifestyle, just showing up in a city, grabbing a chunk of cash out of a safe deposit box, living it up, and then heading to a property somewhere else. 

[whizneo]

Are there members still interested in discussing this thread?

I am a Canadian, who is looking to start a perpetual traveling lifestyle with 2 goals in mind: 1) Travel, which I enjoy and 2) Not have to file or pay taxes anywhere.

Couple of questions I have:

1) Why do I need to be a resident of any country at all? What if I live in US for 4 months, Panama for 5 months, and 3 months in Bermuda/Bahamas? I will not be considered a resident for tax purpose in any country then.

2) Are there any specific investment types which fit with PT lifestyle better? There are tax implications here also. For example, if I own rental properties in the US, I am required to pay 30% taxes on the rental income.

Looking forward to learning more!

THE PERPETUAL TRAVELER AND THE 5 FLAGS THEORY

[jack603]

Are there members still interested in discussing this thread?

I am a Canadian, who is looking to start a perpetual traveling lifestyle with 2 goals in mind: 1) Travel, which I enjoy and 2) Not have to file or pay taxes anywhere.

Couple of questions I have:

1) Why do I need to be a resident of any country at all? What if I live in US for 4 months, Panama for 5 months, and 3 months in Bermuda/Bahamas? I will not be considered a resident for tax purpose in any country then.

2) Are there any specific investment types which fit with PT lifestyle better? There are tax implications here also. For example, if I own rental properties in the US, I am required to pay 30% taxes on the rental income.

Looking forward to learning more!

You need to have a legal residence in some country in the world, otherwise you're asking for trouble from the authorities. Keeping your Canadian citizenship is fine since Canada doesn't tax on overseas income if you're not a resident (the US does). What you want to do is keep your Canadian passport, but place your legal residence in a country that doesn't tax foreigners on overseas income. These tax havens usually only tax its citizens and non-citizens that earn income in the country, so don't work there. Place your residence in Panama and you can travel to those other countries that you mentioned. Bahamas and Bermuda work too but the cost of living is higher there.

[BravoWhiskey]

I have nothing to add to this conversation... but am very very interested in the topic.

Thank you for bringing this up

Same here

[r_w]

Many jurisdictions tax you for any income earned in or while residing in their jurisdiction.  Many also make it a crime to be homeless.  And to not have legal identification.  It is possible to be under the radar, but there are a number of ways to get into legal trouble once you run into law enforcement.