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Encyclopedia > Perpetual traveler

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

Contents

Background

In practical terms, perpetual travelers (PTs) 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. Residency is the act of establishing or maintaining a residence in a given place. ...


By lacking a legal permanent residence status, they seek to avoid the legal obligations which may accompany residency, such as

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. PTs may spend the majority of their time in other countries, never staying long enough to be considered a resident.-1... This article may be confusing for some readers, and should be edited to enhance clarity. ... For military service in the meaning of an army as a military defense organization, see armed forces. ... A tax haven is a place where certain taxes are levied at a low rate or not at all. ...


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. This article contrasts tax evasion, tax avoidance and tax mitigation. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        An income tax is a tax levied on the financial income... Look up Tax return in Wiktionary, the free dictionary For tax returns in the United States see Tax return (United States); for tax returns in Canada see Tax return (Canada). ...


American example

  • 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. This workaround can only help you IF AND ONLY IF you are not a US citizen.
  • The US law on renouncing citizenship is very poorly written. The US law regarding the renunciation of citizenship is perhaps set up in this way so as to only allow the wealthy (and well connected) to be able to renounce their US nationality. The poor and middle class are totally disadvantaged in this way, with respect to renouncing their citizenship.

Overview The middle class (or middle classes) comprises a social group once defined by exception as an intermediate social class between the nobility and the peasantry. ...

  • In general PT's can, by moving between countries on a regular basis -- 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".

Taxes redirects here. ... Look up itinerant in Wiktionary, the free dictionary. ... Self-ownership or sovereignty of the individual or individual sovereignty is the condition where an individual has the exclusive moral right to control his or her own body and life. ... The System can refer to: Any system of government, law, or bureaucracy. ...

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


The Five Flag Theory although meaningful, is overkill with respect to the way the world really works For Microsoft Corporation’s “universal login” service, formerly known as Microsoft Passport Network, see Windows Live ID. For other types of travel document, see Travel document. ... Citizen redirects here. ... This article is about law in society. ... A residence may be a house, a place to live, like a nursing home. ... A tax haven is a place where certain taxes are levied at a low rate or not at all. ... Corporate tax refers to a direct tax levied by various jurisdictions on the profits made by companies or associations. ... This article is about the business definition. ... A consumption tax is a tax on the purchase of a good or service. ... vat can be a type of barrel used for storage. ...

  1. Many Caribbean nations and South Pacific Forum states are (so called) tropical resort nations. These nations historically have had such weak currencies (vs the AUD, CAD, EUR and USD) that the VAT argument holds little meaning. These nations have been playgrounds for the wealthy for the past 50 years.
  2. Asset and residence havens can be the same, if you can afford to live there: The Cayman Islands or Bermuda for example.
  3. Only a fool puts their assets and investments in more than one tax haven. Use of multiple tax and havens (usually just 2 or 3) has been standard procedure for the past 40 years.
  4. Tax havens themselves are relative, for example a UK national and resident could use Australia (where they would have to have permanent residence) as a tax residence. This was done by a few UK entertainers in the late 1960s to mid-1970s. Australian tax law has since changed and this is no longer possible.
  5. Minor modifications to the Three Flag Theory, something like a 3.5 Flag Theory would suit most of the people that need to live this way and can afford it. Investment and tax havens can be the same, providing precautions are taken with respect to moving money between countries.
  6. The Five Flag Theory also works with respect to inheritance (or estate) taxes. Canada and many other non-European nations have ceased having inheritance taxes. Thus (for example) a Canadian Permanent Residence status (and permanent tax residence) at time of death could save potentially hundreds of thousands of dollars of US estate tax (depending on how the assets are structured). See: Taxation_in_Canada#Inheritance_tax
  7. People can use offshore corporations and trusts (in general) to hold and move their assets (and investments) around the globe. A lot of the 3 Flag and 5 Flag theories ignore this basic work around.

West Indies redirects here. ... The Pacific Islands Forum is an inter-governmental consultative process which aims to enhance cooperation between the countries of the Pacific Ocean and represent their interests. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        The level of Taxation in Canada is average among Organisation for...

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 or anarchist schools of thought, which advocate individual sovereignty - sovereignty vested in the individual rather than in nation-states. A design for a World Citizen flag World Citizen badge World citizen is a term with a variety of meanings, often referring to a person who disapproves of traditional geopolitical divisions derived from national citizenship and approves world government and democracy. ... For other uses, see Utopia (disambiguation). ... See also Libertarianism and Libertarian Party Libertarian,is a term for person who has made a conscious and principled commitment, evidenced by a statement or Pledge, to forswear violating others rights and usually living in voluntary communities: thus in law no longer subject to government supervision. ... Anarchism is a generic term describing various political philosophies and social movements that advocate the elimination of hierarchy and imposed authority. ... Self-ownership or sovereignty of the individual or individual sovereignty is the condition where an individual has the exclusive moral right to control his or her own body and life. ... Max Barry set up Jennifer Government: NationStates, a game on the World Wide Web inspired by, and promoting, his novel Jennifer Government. ...


References

  1. ^ Three Flag Theory for Expats "Some PTs add even more flags to create a five flag theory..."
  2. ^ Amazon Book Description "To succeed as a PT you will compartmentalize your life under these FIVE FLAGS..."
  3. ^ Five Flags Theory "Persons utilizing this philosophy are called 'PT's..."

See also

A tax resister resists or refuses payment of a tax because of opposition to the institution collecting the tax, or to some of that institution’s policies. ...

External links

  • Worth Magazine Article - An article about the idea of perpetual tourism
  • The PT Concept - information on "three flag theory" and becoming a Permanent Tourist
  • PT Club Website - An overview from ptclub.com
  • PTshamrock Website Another site for information
  • Perfect Privacy Forum A PT services, information and networking center
  • PT FAQs Some answers to commonly asked PT questions
  • IRS Publication 519 IRS document explaining the "Substantial Presence Test"
Tourist redirects here. ... This article is being considered for deletion in accordance with Wikipedias deletion policy. ... Adventure tourism is a type of niche tourism involving exploration or travel to remote areas, where the traveler should expect the unexpected. ... Two hikers in the Mount Hood National Forest Eagle Creek hiking Hiking is a form of walking, undertaken with the specific purpose of exploring and enjoying the scenery. ... An open crevasse. ... A lodging cottage in a rural area of Lithuania. ... To meet Wikipedias quality standards, this article or section may require cleanup. ... This article does not cite any references or sources. ... A type of touring bicycle Bicycle touring is a leisure travel activity which involves touring, exploring or sightseeing by bicycle. ... Bookstore tourism is a type of cultural tourism that promotes independent bookstores as a group travel destination. ... Cultural tourism (or culture tourism) is the subset of tourism concerned with a country or regions culture, especially its arts. ... Dark tourism or thanotourism is tourism involving travel to sites associated with death and suffering. ... This article is being considered for deletion in accordance with Wikipedias deletion policy. ... Drug tourism is considered to be when one travels in order to procure narcotics. ... Tapanti National Park in Costa Rica Ecotourism, also known as ecological tourism, is a form of tourism that appeals to the ecologically and socially conscious individuals. ... Extreme tourism or shock tourism is a type of niche tourism involving travel to dangerous places (mountains, jungles, deserts, caves, etc. ... Female sex tourism is travel by women, partially or fully for the purpose of having sex. ... // With world travel market having undergone significant changes over the last few years a new type of tourist has emerged known as the Free Independent Traveler or Tourist (FIT). ... Garden tourism is a type of niche tourism involving visits or travel to botanical gardens and places which are significant in the history of gardening. ... For other uses, see Grand Tour (disambiguation). ... The Hawai Mahal in Jaipur, Rajasthan. ... Hitchhiking (also called lifting or thumbing) is a form of transport, in which the traveller tries to get a lift (ride) from another traveller, usually a car or truck driver. ... Literary Tourism Literary Tourism is a type of cultural tourism that deals with places and events from fictional texts as well as the lives of their authors. ... Medical tourism (also called medical travel or health tourism) is a term initially coined by travel agencies and the mass media to describe the rapidly-growing practice of traveling to another country to obtain health care. ... Music tourism is the act of visiting a city or town in order to see a gig or festival. ... It has been suggested that this article or section be merged into Nudity in sport. ... Pop-culture tourism is the act of traveling to locations featured in literature, film, music, or any other form of popular entertainment. ... This article is about the religious or spiritual journey. ... Sacred travel, or metaphysical tourism, is a growing niche of the travel market. ... Map of Africa 1890 Look up safari in Wiktionary, the free dictionary. ... Sex tourism is travel to engage in sexual intercourse or sexual activity with prostitutes, and is typically undertaken internationally by tourists from wealthier countries. ... The curvature of Earth seen from orbit provides one of the main attractions for tourists paying to go into space Space tourism is the recent phenomenon of tourists paying for flights into space. ... There are many different definitions of sustainable tourism that have been developed over the last decade. ... Volunteer vacations are an opportunity for people to make a positive difference in the lives of others or to help improve or contribute to society, culture, or the environment while on vacation. ... Wine tourism refers to tourism whose purpose is or includes the tasting, consumption, or purchase of wine, often at or near the source. ... A gift shop is a store primarily selling souvenirs relating to a particular topic, often to simply provide evidence that the consumer has visited that location. ... Lonely Planet logo Lonely Planet Publications (usually known as Lonely Planet or LP for short) claims to be the largest independently owned travel guidebook publisher in the world. ... Rough Guides Ltd is a large travel guidebook and reference publisher, owned by Pearson PLC. Their travel titles cover more than 200 destinations, and are distributed worldwide through the Penguin Group. ... For Microsoft Corporation’s “universal login” service, formerly known as Microsoft Passport Network, see Windows Live ID. For other types of travel document, see Travel document. ... The majority of shops in downtown Jackson, Wyoming cater to tourists. ... A roadside attraction is a feature along the side of a road, that is frequently advertised with billboards to attract tourists. ... Billboards are used to advertise the attractions Tourist trap is a phrase for any establishment or set of establishments that have been created to attract travelers or tourists and provide products for the tourist to purchase. ... A Tour Guide is an occupation or vocation of someone who conducts tours usually within the tourism industry. ... A travel agency is a business that sells travel related products and services, particularly package tours, to end-user customers on behalf of third party travel suppliers, such as airlines, hotels, tour companies, and cruise lines. ... A computer reservations system (CRS) is a computerized system used to store and retrieve information and conduct transactions related to travel. ... This article does not cite any references or sources. ... Contiki Tours is the name of coach tour holidays organized in Europe, Australia, New Zealand and North America. ... For the Venetian Snares album, see Hospitality (album). ... For other uses, see Hotel (disambiguation). ... For the 2005 horror film,see Hostel (film). ... Hostelling Intl, Washington D.C. Hostelling International, formerly known as International Youth Hostel Federation (IYHF), is the federation of more than 90 national youth hostel associations in more than 80 countries who run over 4,500 youth hostels and youth hotels around the world. ... The concept of Hospitality Services, also known as “accommodation sharing”, “hospitality exchange”, and “home stay networks”, refers to centrally organized social networks of individuals who trade accommodation without monetary exchange. ... This is a list of resorts in the world. ... A package holiday or package tour consists of transport and accommodation advertised and sold together by a vendor known as a tour operator. ... World Tourism Organization Building in Madrid The United Nations World Tourism Organization (UNWTO) is a United Nations agency dealing with questions relating to tourism. ... The World Tourism Organization compiles the World Tourism Rankings. ... [1] It was at its third session (Torremolinos, Spain, September 1979), that the General Assembly of the World Tourism Organization (WTO) decided to institute, commencing in the year 1980, WORLD TOURISM DAY is to be commemorated on 27 September each year by appropriate events on themes selected by the General... Travel literature is literature which records the people, events, sights and feelings of an author who is touring a foreign place for the pleasure of travel. ... Tourism Geography or Geotourism is the study of travel and tourism as an industry, as a human activity, and especially as a place-based experience. ... The convergence of industries has forced people to create new terminology such as information technology, biotechnology, ubiquitous technology and even cultural technology to explain new, frequently talked about topics. ...

  Results from FactBites:
 
Perpetual traveler - Wikipedia, the free encyclopedia (363 words)
The term perpetual traveler (PT, permanent tourist or prior taxpayer) refers to both a lifestyle and a philosophy.
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.
By exploiting the rules in place for tourists and travelers, individuals may be able to legally reduce or eliminate their tax burden.
  More results at FactBites »

 
 

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