Hill outlined his PT ideas with a five point plan “...for those,” he said, “with courage enough to pursue freedom.” He memorably illustrated his plan with something he called The Five Flags of Freedom.
Hill wrote: “People of intelligence and wealth owe it to themselves and their descendants to have more than one flag. No one with common sense should give all their assets or allegiance to just one.”
Confiscatory income taxes and suffocating government regulations have caused many independent-minded Americans and their European counterparts to seek new flags.
An individual’s relationship with government should be a matter of choice, an option. The passport you hold and the country where you live or were born need not determine your fate forever...
Why the Greatest Wealth Migration
Today, millions of the wealthiest and most productive Americans are leaving home to relocate various aspects of their lives in the best possible places.
in U.S. History Has Begun
They view governments as providers of facilities and services, like hotel keepers. If they offer good accommodation and make you feel comfortable and prosperous, you stay. If your government becomes too demanding or too nosey, or if a competitor offers a better deal, you can move on.
A few years ago, U.S. News & World Report confirmed, “A wave of native born citizens are going abroad in search of new challenges, opportunities, and more congenial ways of life.”
Some are seeking full-time residences... others find part-time tropical vacation homes where they can live like kings for $20,000 a year... while some move their businesses to slash their taxes.
No one government can or even should be trusted to control all your money. Experience shows us that government does not have your best interests at heart. Americans have learned with a vengeance how much politicians love to redistribute other’s wealth. In the end, they also will succeed in redistributing taxpayers. The major portion of all liquid private wealth, the smart money, already should have been moved offshore. As Bill Hill would say, it has been “re flagged.”
And these days, it’s not just the wealthy jumping ship. Every day, middle-class folks are re-flagging themselves to get the government they want and to gain access to economic opportunities that no longer exist in America.
Individuals can remove themselves from the control and jurisdiction of any government by acquiring dual citizenship, investing internationally and becoming human multinationals.
In order to accomplish this you have to arrange your assets according to the following simple outline:
Your Five Flags: A Strategy to Live as
Flag 1: Second Passport and Citizenship: You should obtain citizenship and a second passport from a country that does not tax non-residents on their worldwide income. The U.S. taxes its citizens without regard to where they live in the world. Your second passport should be issued by a country that is unconcerned about its offshore citizens and their outside activities. It can act as the ultimate insurance policy during times of war, persecution and political upheaval.
Close to Government-Free as Possible
Flag 2: Business Base: You need a place in which you can form a corporation or limited liability company and invest and earn money with minimal restrictions. This should not be where you legally reside, thus it excludes your personal fiscal domicile. Some countries grant free land, interest free loans or tax holidays to promote new local business and jobs with minimal regulation. Such places include the Cook Islands, St. Kitts & Nevis, Uruguay and Panama. I write about these jurisdictions often in Offshore Confidential, a monthly research series that offers offshore wealth protection solutions to every day Americans.
Flag 3: Residence and Domicile: Obviously, the best place to live is where you’re happy. But as a practical matter it also should be a place with a territorial tax system that does not tax outside income. You should live in a tax haven with good infrastructure and communication systems where wealthy, productive people can be creative, live, relax, prosper and enjoy themselves, preferably with maximum bank privacy and a stable government. Panama, Monaco, Andorra, Singapore, Hong Kong, Liechtenstein, Austria and Switzerland should be considered.
Flag 4: Asset Management: In spite of all the negative publicity, Switzerland remains the world’s best place from which assets, securities and business affairs can be managed by proxy. It is one of the best for an offshore bank account, life insurance and annuities. The Swiss have highly competent independent financial managers, and there is little or no taxation of non residents or non citizens. Other possibilities include Austria, Luxembourg, Denmark, Liechtenstein and Hong Kong.
Flag 5: Playgrounds: These are places where you physically spend time, where quality of life is a top priority. Normally, because of legal restrictions on how long one can stay without being considered a resident for tax purposes, it is necessary to have several such places, although, depending on the place, legal and political deals usually can be made if you want to stay in one place. But for tax purposes, one should avoid spending more than 90 days per year in any one country. Factors here are matters of personal choice: climate, seasons, geography, leisure activities, culture, history, security and prices.
Stay Away from “Home”
One point to remember: governments only have power and jurisdiction over their citizens when they are within their home territory or colonies. For this reason, one generally should stay out of the country on whose passport one travels. Your major financial assets should be invisible and far away from the country in which you actually make your home. And keep your lifestyle as unremarkable and humble as possible, never flamboyant and attention-getting.
To Maximize the Benefits
By using the Five Flag strategy, you too can get the most out of life. Once you have your new second passport and money enough to survive comfortably at your chosen destination, security is yours.
Bob Bauman, JD
Chairman, Freedom Alliance