Perpetual traveler

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The term perpetual traveler (PT, permanent tourist or prior taxpayer) refers to both a lifestyle and a philosophy.

Contents [hide] 1 Background 2 Rationale 3 Five Flag Theory 4 Philosophy 5 References 6 See also 7 External links

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[edit] Background

In practical terms, perpetual travelers are people who live in such a way that they are not considered a legal resident
of any of the countries in which they spend time. In this way, they
seek to avoid the legal obligations which may accompany residency, such
as taxes, jury duty, and military service.
For example, while PT's may hold citizenship in one or more countries
that impose taxes based solely on residency, their legal residence will
most likely be in a tax haven. They may spend the majority of their time in other countries, never staying long enough to be considered a resident.

[edit] Rationale

Some PT's are wealthy individuals whose primary motivation is tax avoidance.
It is possible for a non-national to live for several months, and in
some cases even own property, in many countries without paying income tax.
For example most European countries allow tourists to spend up to three
months (and in some cases six months) in the country without being
considered a resident or being required to file a local tax return. Similarly, one can
spend up to 122 days each year in the United States without being
considered a resident or being required to file a US tax return, as
long as one is not a citizen. By moving between such countries on a
regular basis, individuals may be able to legally reduce or eliminate
their tax burden.

Other PT's and itinerants may adopt this lifestyle for primarily self-ownership reasons, seeking to be free from government authority, interference and "The System".

[edit] Five Flag Theory

Perpetual travelers may attempt to organize their affairs around the "Five Flags" theory^[1][2][3],
arranging for different facets of their lives to fall under the
jurisdiction of separate countries, or flags. This is an extension of
W.G. Hill's original "Three Flags" approach.

Whether to minimize governmental interference (via taxes or
otherwise), or to maximize privacy, the theory proposes that you
arrange for each of the following to be in a separate country:

1. Passport and Citizenship - in a country that does not tax money earned outside the country
2. Legal Residence - in a tax haven
3. Business Base - where you earn your money, ideally somewhere with low Corporate tax rates
4. Asset Haven - where you keep your money, ideally somewhere with low taxation of savings interest and capital gains
5. Playgrounds - where you spend your money, ideally somewhere with low consumption tax and VAT

[edit] Philosophy

On the surface, perpetual tourists have some things in common with world citizens, in that they see themselves as untethered to any one nation. However, PT's generally seem to eschew the humanistic and utopian overtones of world citizenship. Many PT's align themselves closely with the libertarian school of thought, which advocates individual sovereignty - sovereignty vested in the individual rather than in nation-states.