DISCLAIMER: Don’t mix me up with a dumb person from Singapore, having his domain name similar than expat-world.com, mine was registered 1996! And I am not greedy, and don’t buy fake Greek passports by the dozens :-).
I am a dog, my owner is a long time PT and feeds me well. We have been mastering the hostile bureaucrazy world since 1985, and think there are still untapped PT possibilities in 2010 and ahead. With every cut into our privacy there will always be a new opportunity to thrive in. Find it and exploit it.
For the newbie, what is PT?:
“Where Liberty Is, There is My Country”, Benjamin Franklin
What’s a PT? A PT is somebody who is Prepared Thoroughly for any
eventuality or situation. A PT lives stress-free and sleeps
soundly at night because he or she is Prepared Thoroughly,
Invisible to Potential Enemies & free to concentrate on the good
things in life. A PT is a Prior Taxpayer ; a Privacy Thinker – a
Perpetual Traveler or Permanent Tourist who is just Parked
Temporarily or Passing Through. PT is also a form of defense:
Protection against Tyranny. Some people have called PT “a
coherent plan for a happy, prosperous international lifestyle.”
PTs would probably just say it is the ‘Perfect Thing.’
Detractors might call us “Paranoid Together.” Grandpa says
“Better Paranoid & Protected than Red or Dead.”
Under the guise of helping us (“for your own safety”) governments
have intruded into every area of our lives, taking the largest
part of our earnings in taxes and rewarding us with little aside
from restrictions and harassment. PT is a way to assert your
freedom – to escape from the growing repression and intrusiveness
of Big Governments everywhere. Like the corporations who have
learned to internationalize and diversify, PT shows productive
people how to get out from under the thumb of Big Brother. An
alternative description could be: How to Remake Yourself into a
One Man Multinational.
PTs don’t beg for or expect government help or expect
“protection.” In the same way, we refuse to contribute to
superfluous socialist welfare states. But we don’t believe in
fighting them. We will simply go our own way –quietly– under
the radar. Hopefully, nobody will ever notice we are gone!
PT is not a fixed set of rules. It’s just a way of thinking… an
attitude to life. The originator of the PT concept does not even
wish to be identified. But he is still going strong today,
publishing an excellent investment newsletter. In a classic 1950s
pamphlet, he explained how this ideal can easily be achieved by
spreading your interests out over various unrelated countries.
It’s not expensive (indeed it’s probably cheaper than any
alternative). He wrote about international arbitrage through the
use of three different national jurisdictions, or – as he called
them – ‘flags.’ Later, in the 1980s, legendary author W.G. Hill
expanded the original 3 flags to five – so it became the ‘Five
With the arrival of the Bye Bye Big Brother ‘Black Books’ in
2006, a sixth flag was added to the previous flags. Marvelous new
PT opportunities opened up on the Internet. Cyberspace was added
as the sixth flag that brings us many new “Portable Trades”
pulling together the other five flags..
W.G. Hill, and later Grandpa, have always been at pains to point
out that the Six Flags Theory is not a hard or fast set of rules.
It is rather an attempt to put structure to the PT lifestyle so
anyone can easily understand what PT is all about. Nobody really
lives the six flag lifestyle 100%, but many people choose to live
parts of it. PT Living is an art, not a science. Each individual
interprets PT ideas in his or her own way.
Below is a listing and explanation of the Six Flags.. If you
would like to read more, you may download free sample chapters of
Bye Bye Big Brother. Top go the whole hog, invest in your own
personal copy of Grandpa’s seminal three volume, easy reading
The PT’s Six Flags Unfurled
In addition to the passport of your native country, you should
hold one or more passports from preferably neutral,respectable
nations. The best of these do not try to tax their citizens
living outside their territory, nor to draft them into military
service. These passports should allow visa-free access to as many
nations as possible. For ease of travel, we recommend European
Union followed by Latin American passports. “Banking passports”
should match your language and racial characteristics.
RESIDENCE HAVENS (DOMICILES)
This is your official residence. A country which regards you as a
bona-fide resident, although you might not actually spend too
much (or any) time there. It should be a country which does not
tax income earned abroad, the effect being that you won’t have to
file any personal tax returns anywhere. Tax havens like Turks and
Caicos, Panama and Andorra are good low-budget candidates.
Bermuda, Liechtenstein, Switzerland and Monaco are more up market
– if you can afford them. In the first world, the UK, Italy and
Ireland are also worth considering because of their no-tax
treatment of foreigners. Most Asian, Central and South American
countries do not tax offshore incomes, and many of these
countries, like Paraguay (and believe it or not, North Korea!)
have no income taxes at all. Argentina, Uruguay and Brasil are
de-facto tax havens. But then again, the whole world is a fiscal
paradise for PTs who arrange their paperwork properly.
These are places where you physically choose to spend most of
your time. They depend on your personal taste. Quality of life is
top priority. Because of legal restrictions on how long one may
stay without being considered resident for tax purposes, it may
be necessary to have from two to four playgrounds. But the fact
is, you can easily make arrangements to spend all of your time as
a PT in one playground if desired. It’s just a question of
getting the paperwork right.
Grandpa’s personal recommendations. For no nukes nor pollution
and good fishing: New Zealand. For the most interesting sex life
imaginable: Thailand. Other sex-havens include Cuba,Mexico,
Paraguay and The Philippines. For a superb year round climate:
California, USA or Queensland, Australia. For the gourmet, we
give top honors to the French Riviera and Hong Kong. Italy gets
third place for excellent food. For stimulating parties and an
active social life: Paris, London, Rio de Janeiro or San
Francisco. For the best things at the cheapest prices: Ciuidade
d’Este Paraguay, New York City, Singapore, Taiwan and Hong Kong
(for consumer goods). Fishing in Europe? Ireland (summers only
unless you love cold, damp weather). Punta Del Este (Uruguay) is
the playground of Buenos Aires (also a great European winter
home). The world is your playground as a PT.
These are places where you actually earn your money. If you own
an existing business that can’t be moved, you may not have much
choice in the matter: you may have to bite the bullet and pay
some taxes. Almost all businesses can be gradually shifted abroad
by outsourcing and exporting more. If you earn money with your
skills, you can probably re-domicile and operate in cyberspace
(on the Internet). Or you may choose an offshore tax haven as
your physical business base. Then you are largely regulation &
tax free. Either way, your business will be incorporated, to
insulate against personal liability. Ideally, you will set up the
paperwork properly. Then you will never have to file personal tax
returns, nor need any permits, licenses or special dispensations.
Good access to contacts, labor markets or materials is also
important. London, Tokyo and New York are the big centers for
finance and insurance. Zurich, Milan, Singapore and Frankfurt are
among the second-ranked contenders. But in today’s global
economy, you could base your business anywhere. Wild-card
contenders such as Brasil, Estonia, Malaysia or Panama are out
there competing to offer you a business haven. They all deserve a
These countries are where you keep your savings and investments,
safely salted away from where your money is actually earned or
spent. They should score highly on respect for privacy,
communications, professionalism and stability. Your assets, kept
in secret numbered accounts, will be controlled with hacker-proof
encrypted electronic messages or personal visits only. Naturally,
you don’t live, play or do much business in the place where your
assets are discreetly planted. And it is important to have a
banking passport from a country that does not (by treaty or
otherwise) insist your banking haven give them a full dossier on
You can have several asset havens. Top-ranked candidates include
Liechtenstein and Singapore. Switzerland, or Austria may still be
good for non-EU or US citizens. Bankers in other locations may
not yet be up to the Swiss standards, but they fly under the
radar and are more accessible to people with moderate wealth.
Read more about this topic in our other books–Invisible Investor
or Private Banking Secrets.
ELECTRONIC HAVEN IN CYBERSPACE
This is your Internet Business, Communications and Cash
Transmittal System. It’s so cheap to rent server space that it
doesn’t matter much where your servers and websites are located.
You can be physically anywhere, but invisible to all. Have a few
servers, and offshore sites. Best for them to be in places like
Taiwan, Costa Rica or Panama – or on far off islands, like Tuvalu
Better still, why not be “distributed” so you can change
jurisdiction automatically every two seconds – technology makes
it possible. It is becoming easier by the day to be anonymous.
Your Internet presence should emanate from any place where the
net is unregulated and untaxed. Your electronic base should be
anywhere – where you are not. With no physical presence, you
can’t be served with process or sued. Your encrypted
communications, files and data banks will be safe from private or
government snoopers. If ‘authorities’ in your server’s host
country bother you – or if an ISP gives you grief – you just
press ‘delete.’ With your sixth flag you can take advantage of
many new opportunities in the 21st Century Information Age.
Virtually all the reports in the Bye Bye Big Brother series deal
directly or obliquely with selecting and setting up your six
flags. Understanding the six flags theory is vital. We strongly
recommend you re-read this section a few times. Think more about
it. Can it apply to making you happier, healthier & richer?