Asset Protection Strategies for the Ultra Wealthy: Applying the Flag Theory

Strategies of the ultra wealthy - The Expat Money Show

Making money while living in and travelling to another country sounds amazing; but when it comes to taxes, residency and bank procedures, matters tend to get a little complicated. If you’re someone who isn’t confined by borders, would love zero tax obligations, want to keep your hard-earned money safe, and your privacy intact, then you need to learn a  few things about the flag theory.


What’s The Flag Theory?

The flag theory helps a perpetual traveller increase their freedom and prosperity by strategically placing ‘flags’ all over the world. The foundation of the theory is that every country has different advantages, which can be used to optimize a person’s assets and wealth.

Here are the seven flags of the flag theory that can be used to keep your assets safe and secure.


1. A Second Citizenship

Seeking a second citizenship can help you comfortably live your life internationally. Having a second passport gives you easy access to other economic communities and opportunities. It also opens more employment and residency options for you.


2. Tax Residency

Governments tax citizens in any way that they can. And while tax evasion is a crime, tax reduction isn’t! Business owners and other individuals can legally minimize their taxes by seeking residency in a country that doesn’t demand a high income tax from its citizens.


3. Offshore Company

After you’ve acquired a second residency, you can open a legal offshore company to protect your assets. This is the most significant flag you can plant internationally. It’ll help increase your wealth, grow your business and, most importantly, save your money on taxes.


How to open an offshore bank account to protect your assets and your wealth


4. Offshore Banking

Whether it’s money or other assets such as gold or even art collections; these should be held in a bank that lies outside the jurisdiction of where you earn and spend your money. Make sure that the judicial system is efficient and will keep your banking assets safe and secure.


5. Actual Residency

This flag was previously known as the ‘playground,’ which refers to the country where you actually reside. To plant this flag, you should make sure that the country you choose has low taxes and is affordable.


The top residency options are Malaysia, Panama, Colombia, and Ecuador.


6. Digital Security

With the changing digital landscape, the threats to your intangible assets are increasing. Therefore, it’s important that you store your digital documents and other critical information in a country that has strict data protection and privacy laws.


7. Digital Assets

Acquiring digital currency is an important step for an asset protection strategy, as digital wallets can be transferred across borders and countries without any restrictions. It allows you to build wealth, keep it safe and tax-free.

If you’re looking for a financial consultancy that provides excellent advice on opening offshore accounts, establishing offshore incorporations and managing financial entities, get in touch with Expat Money Show today!





About The Host, Mikkel Thorup

Mikkel Thorup; the host of The Expat Money Show, has 20+ years in continual travel around the world, visiting more than 100 countries including Colombia, North Korea, Zimbabwe and Iran.

His goal now is to help Expats just like you to generate additional streams of income, eliminate your tax bill, and take advantage of offshore structures so you can travel the world freely and never have to worry about money again.

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1 Comment

  1. ron on 04/19/2019 at 1:17 AM

    Interest in Tax tactics

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