Making money while living in and travelling to another country sounds amazing; but when about 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.
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!