“Where Liberty Is, There is My Country” – Benjamin Franklin
Anytime that we take some kind of action that increases our sovereign freedom and diversifies our assets, business or our lifestyle, such as opening a foreign bank account or buying a home in a different country, we call this “planting a flag”. Such moves that diversify us on an international level enable us a certain level of increased privacy and financial freedom, in that it gives us control over our own finances and our freedom of travel. The idea of planting flags in other parts of the world to take advantage of greater opportunities in the global economy was first pioneered in the 1960’s by a man named Harry Schultz. He created the original concept of the ‘Three Flag Theory’, explaining the importance of having each of the following:
1. A citizenship in a country that does not tax income earned outside the country.
2. Business and investments that generate income in low-tax or no-tax business havens where the legal system protects private interests and property.
3. Spend time living as a tourist in countries where you feel comfortable, welcome, and where your values are supported. These playgrounds should be away from where your business and investments and where your money is made.
These are the core principles of a Permanent Tourist, or a PT as we call it. By living abroad and establishing a location-independent source of income from your business and investments in other countries, the PT can effectively disappear overseas and quietly build substantial untaxed wealth by keeping a low profile and living wherever in the world best suits their needs. This strategy is entirely legal, and the point is to get out from under the thumb of Big Government surveillance states and the fumbling bureaucracies that make life much more of a hassle.
To explain a little bit more about the life and mentality of a Permanent Tourist, I want to explain more about what it means to be a PT.
What is a PT?
A PT is somebody who is Prepared Thoroughly for any eventuality or situation. PT is a
mentality, way of life, and viewing the world. Most importantly, a PT lives stress-free and sleeps
soundly at night because he or she is Prepared Thoroughly, free to concentrate on the good
things in life.
A PT is a Permanent Tourist, a Prior Taxpayer and a Privacy Thinker – a Perpetual Traveler who
is just Parked Temporarily or Passing Through. PT is also a form of defense: Protection against
Some people have called PT “a coherent plan for a happy, prosperous international lifestyle.”
PTs would probably just say it is the ‘Perfect Thing.’
PTs are Happier, Healthier, Sexier and Wealthier. Why?
Under the guise of helping us (“for your own safety”) governments have intruded in every area
of our lives, taking the largest part of our earnings in taxes and rewarding us with little aside
from restrictions and harassment. PT is a way to assert your freedom – to escape from the
growing repression and intrusiveness of Big Governments everywhere. Like the corporations
that have learned to internationalize and diversify, PT shows productive people how to get out
from under the thumb of Big Brother. An alternative title could be: How to Remake Yourself into
a One-Man Multinational.
PTs don’t ask for or expect government help or protection in any way. In the same way, we
refuse to contribute to superfluous socialist welfare states. But we don’t believe in fighting. We
will simply resist quietly, under the radar. Hopefully nobody will ever notice we have gone!
PT is not a fixed set of rules. It’s just a way of thinking…an attitude to life. The originator of the
PT concept does not even wish to be identified. The content on our website discusses how you
can utilize the 6 Flags of the Permanent Tourist, and explains how this ideal can easily be
achieved by spreading out your interests over various, independent countries. It’s not expensive
(indeed it’s probably cheaper than any alternative). Originally, the person who pioneered this
concept and way of life wrote about international arbitrage through the use of three different
nations, jurisdictions, or – as he called them – ‘flags.’ Later, in the 1980s, legendary author W.G.
Hill expanded the number of flags to five – so it became the ‘Five Flags Theory.’
With the arrival of my partner & mentor Peter Taradash’s revised & expanded PT theory, Bye
Bye Big Brother ‘Black Books’ in 2006, a sixth flag was added to the previous flags. Marvelous
new opportunities had been opened up that were made for PTs as a result of the internet.
Cyberspace was added as the sixth flag that brings all the other five flags together.
W.G. Hill, and later Peter Taradash, had always been at pains to point out that the Six Flags
Theory is not a hard-and-fast set of rules. It is rather an attempt at putting a little structure to the
Permanent Tourist lifestyle so people can understand what international arbitrage really means.
Almost nobody really lives the six flag lifestyle, but many people choose to live parts of it. Living
is an art, not a science, and each individual will interpret PT ideas in his or her own way.
Below is a listing of the six flags as fully explained in the 3 part ‘Bye Bye Big Brother’ series. If you would like to read more, contact us for a full explanation of the PT Six Flags Theory.
The PT’s Six Flags Unfurled
First Flag: CITIZENSHIP
In addition to the passport of your native country, you should hold one or more passports from
small, neutral and respectable nations. These nations do not try to tax their citizens living
outside their territory, nor do they draft them into military service. These passports should ideally
allow visa-free access to as many nations as possible. For ease of travel, we recommend
European Union followed by Latin American passports.
Second Flag: RESIDENCE HAVENS (DOMICILES)
This is your official residence. A country which regards you as a bona fide resident, although
you might not actually spend too much (or any) time there. It should be a country which does
not tax income earned abroad, the effect being that you don’t have to file any personal tax returns anywhere. Tax havens like Turks and Caicos, Panama, and Andorra are good low-
budget candidates. Bermuda, Liechtenstein, and Monaco are more up market – if you can afford them. In the first world, the UK and Ireland are also worth considering because of their no-tax
treatment of foreigners. Most Asian, Central and South American countries do not tax offshore
incomes, and many of these countries, like St. Kitts & Nevis or The Bahamas have no income
taxes at all. They are de-facto tax havens. But then again, the whole world is a fiscal
paradise for PTs who arrange their paperwork properly.
Third Flag: PLAYGROUNDS
These are places where you physically choose to spend most of your time. They depend on
your personal taste. Quality of life is top priority. Because of legal restrictions on how long one
may stay without being considered resident for tax purposes, it may be necessary to have from
two to four playgrounds. But the fact is, you can easily make arrangements to spend all of your
time as a PT in one playground if desired. It’s just a question of getting the paperwork right.
Here are some of our top personal recommendations:
- For no nukes, no pollution, and good fishing: New Zealand.
- For the most interesting dating life imaginable: Thailand. Other great places include Cuba,
Puerto Rico, Colombia, Brazil, Paraguay and The Philippines.
- For a superb year round climate: California, USA or Queensland, Australia.
- For the gourmet, we give top honors to the French Riviera and Hong Kong. Italy gets third
place for excellent food.
- For stimulating parties and an active social life: Paris, London, Rio de Janeiro, San Juan, or
- For the best things at the cheapest prices: Singapore, Taiwan, and Hong Kong (for
- For fishing in Europe: Ireland (summers only, unless you love cold, damp weather). In
South America: Punta del Este, Uruguay. It is also near Buenos Aires and a great spot
for a winter home.
Fourth Flag: BUSINESS BASES
These are places where you actually earn your money. If you own an existing business that
can’t be moved, you may not have much choice in the matter: you may have to bite the bullet
and pay some taxes. Almost all businesses can be gradually shifted abroad by outsourcing and
exporting more. If you earn money with your skills, you can probably re-domicile and operate on
the internet, or simply choose an offshore tax haven as your physical business base. Then you
are tax-free. Either way, your business will be incorporated, to insulate against personal liability.
Ideally, you will set up the paperwork properly and you will never have to file personal tax
returns, or need any permits, licenses or special dispensations.
Good access to contacts, labor markets, or materials is also important. London, Tokyo, and
New York are the big centers for finance and insurance. Zurich, Milan, Singapore, and Frankfurt
are among the second-ranked contenders. But in today’s global economy, you could frankly
base your business anywhere. Wildcard contenders such as Estonia, Malaysia, Puerto Rico, or
Panama are out there competing to offer you a business haven. They all deserve a serious look.
Fifth Flag: ASSET HAVENS
These countries are where you keep your savings and investments, safely salted away from
where your money is actually earned or spent. They score highly on respect for privacy,
communications, professionalism and stability. Your assets may be kept in secret, numbered
accounts, which will be controlled by hacker-proof, encrypted, electronic instructions, or
personal visits only. Naturally, you don’t live, play, or do much business in the place where your
assets are discreetly planted. And it is important to have a banking passport from a country that
does not (by treaty or otherwise) insist your banking haven give them a full dossier on your
You can have several asset havens. Top-ranked candidates include Liechtenstein, Switzerland,
or Austria for non-EU or US citizens. Bankers in other locations may not yet be up to the Swiss
standards, but they fly under the radar and are more accessible to people with moderate wealth.
These days in 2020, SE Asia has some of the best banks in the world as well in places like
Singapore. Depending on where you wish to bank in the world, there are even out of the
ordinary options such as Georgia (the country) that are cultivating a friendly banking
environment toward foreigners wishing to open accounts and store wealth in the country. Read
more useful free information about private banking secrets on our website.
Sixth Flag: ELECTRONIC HAVEN IN CYBERSPACE, INTERNET PRESENCE, CRYPTOCURRENCY, & ONLINE BUSINESSES
This is your Internet Business, Communications, and Cash Transmittal System. Modern
technology allows us to send and receive cash instantly anywhere in the world, using tools like
PayPal or Bitcoin. Encrypted email services and messenger apps can be used to completely
secure your communications and remain anonymous if necessary. It’s so cheap to rent server
space that it doesn’t matter much where your servers and websites are located. You can be
physically anywhere, but invisible to all. Have a few servers, and offshore sites. Best for them to
be in places like Taiwan, Costa Rica, or Panama, or on far away islands, like Tuvalu or Niue.
Better still, why not just be totally distributed so you can change jurisdiction automatically every
two seconds? Technology makes it possible and it is becoming easier by the day. Your internet
presence should emanate from any place where “the Net” is unregulated and untaxed. Your
electronic base should be anywhere – where you are not. With no physical presence, you can’t
be served with process or sued. Your encrypted communications and files will be safe from
private or government snoopers. If ‘authorities’ in your server’s host country bother you – or if an
ISP gives you grief – you just press ‘delete.’ With your sixth flag you can take advantage of
many new opportunities in the 21st Century Information Age.
Much of the information I publish and professionally consult on deals directly or obliquely with
selecting and setting up your six flags. Understanding the six flags theory is vital. We strongly
recommend you re-read it a few times so you can think more about it. How does it apply to
We’ve published one of the most comprehensive guides available on going offshore.
Learn the secrets of building wealth abroad and doing business internationally in this
PT – ‘Permanent Tourist’: The Path to Prosperity & Safeguarding Private Wealth
– Available now on Amazon/Kindle –
PT is the ‘Magnum Opus’ of living internationally, doing business abroad, and operating in foreign countries. Lots of easy reading tips, stories, and “PT Secrets.” By relating many of my personal consultations with clients and my personal experiences doing business overseas, I can show you how to be happier, healthier, sexier, and wealthier.
To Your Success,