– Principles:
– Individuals live without legal residency in any country.
– Avoid legal obligations like taxes, social security, jury duty, and military service.
– Described as late capitalist nomadism.
– Based on the perpetual traveler idea.
– Aims to avoid legal obligations associated with residency.
– Flag Theory:
– Involves using flags to represent legal jurisdictions.
– Three Flags Theory by Harry D. Schultz suggests having a second passport and address in a tax haven.
– Expanded to Five Flags for earning money and recreation.
– Suggests having different aspects in separate countries.
– Includes passport, tax residence, business base, asset haven, and playgrounds.
– Tax Efficiency:
– Minimizing governmental interference through taxes.
– Maximizing privacy and financial benefits.
– Having assets in locations with low taxation.
– Operating businesses in countries with low corporate tax rates.
– Living in places with minimal consumption taxes.
– Legal Residency:
– Avoiding legal obligations tied to residency.
– Not being considered a permanent resident anywhere.
– Potential to escape income and asset taxes.
– Eliminating duties like social security contributions and military service.
– Living as a perpetual traveler to maintain this status.
– Financial Management:
– Separating work, money, and living locations.
– Keeping money in a different place than where one lives.
– Managing assets from a location outside one’s residence.
– Efficiently handling affairs by working, living, and investing in separate places.
– Exemplified by individuals like Bob Beckman residing in Monaco.
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A perpetual traveler (also PT, permanent tourist or prior taxpayer) is a person who bases different aspects of their life in different countries, without spending too long in any one place, under the belief that they can reduce taxes, avoid civic duties, and increase personal freedom. Books and services relating to the PT idea have been a staple of companies that specialise in marketing offshore financial centres, tax avoidance schemes, and personal privacy services.
