The Perpetual Traveler: Why You Need Tax Havens

"Liberty has still a continent to live in." - Horace Walpole, 1779.

A tax haven is an important flag in a PT entrepreneur's arsenal. Just as a PT uses a passport as his personal flag of convenience, a tax haven is his link to the bureaucratic world of business and/or government relations.

A PT who has only passive personal investments - bank accounts, mutual funds, unit trusts, annuities etc. - may not need a tax haven at all. But even for the passive investor, there may be great advantages in creating a personal or family trust in a tax haven. Having all of ones finances managed from a tax haven provides a great deal of privacy, combined with professional management, and the ability to have somebody qualified and able to act on your behalf immediately in case of an emergency. Another reason is that the PT's assets can pass privately to his heirs without the interference of government probate systems, or forced inheritance laws in the country where the bank accounts or investment portfolios are held.

Tax havens truly become an important key for a PT who has any form of active business involvement, from something as limited as collecting copyright or patent royalties all the way up to a very active business. A tax haven company provides the permanent base that any company needs to deal with the world at large, since a company cannot effectively become a PT and continue to do business. The tax haven company becomes the PT's interface between his personal lifestyle and the need to anchor the business somewhere and have it appear conventional to those it does business with.

The royalty earning PT may use a tax haven company to take advantage of treaties that eliminate the withholding taxes in the high-tax countries, and then the tax haven company can funnel the money tax free to the PT.

A PT with more active business involvements may use a company in a different type of tax haven, perhaps to publish a newsletter sold on a worldwide basis, or to own a fishing trawler working the high seas, or just as a place to register his personal yacht.

By acquiring dual citizenship , investing globally and becoming human multinationals you can remove yourself from the control and jurisdiction of any one government. In order to accomplish this redistribution you simply divide your self and your assets among five different flags:

Your Five Flags

The PT Blueprint - and your personal airbag against the Taxman, and the Unforseen!

FLAG 1: Passport & citizenship. Obtain a second passport and citizenship from a country where non-residents are not subject to taxation, conscription or government controls.

FLAG 2: Business base. These are places where you make your money. Establish or re-organise your business in such a way that your profits are retained in a country other than that in which you have legal domicile or citizenship.

FLAG 3: Residence/domicile. Have domicile in a tax haven country, which meets your personal requirements. This should be a country with good communications. A place where wealthy, productive people can be creative, live, relax, prosper and enjoy themselves, preferably with bank secrecy and no threat of war or revolution.

FLAG 4: Asset management/repository. This should be a tax haven with excellent communications and professional and confidential financial services (e.g. our Channel Island Package ) from which assets, securities and business affairs can be managed anonymously by proxy under your complete control.

FLAG 5: Playgrounds. These are places (e.g., Monaco ) where you actually physically spend your time around the world. Most countries have restrictions that govern the period you may stay before you have to comply with residency and/or taxation requirements, generally six months but often less. You will therefore need several favoured places so that you can move freely among them like a simple, low profile tourist, without attracting any undue official attention.

"PT starts by taking root in the mind. It becomes a thought process, that never leaves you!" - W.G. Hill, author of PT concept.