Five Flag / Six Flag (PT) Theory

[jenh]

Just curious to know who on this forum is a fan of five flag (or six flag if you prefer) theory and how are you doing it? Are some of you who are pursuing citizenship here doing it for this reason? Where are your other flags?

(If you have not heard of it - http://en.wikipedia.org/wiki/Perpetual_traveler)

 

[El_Jameso]

Interesting...

I have no idea how I'd go about attaining planting most of those flags, but it seems a smart (albeit unethical) way to live.

 

[Johnno]

It is quite smart but I don't think I have enough money to make it work in the first place lol To me this is something that will only work for those with substantial assets anyway...

 

[palermochica]

? Are some of you who are pursuing citizenship here doing it for this reason?

Isn't one of the rules that you get citizenship in a country with no tax on foreign assets/income??

 

[jenh]

Yes, but people may pursue additional passports for many reasons. I'm not pursuing citizenship here, so I don't know what the taxes on foreign income are. I know that Uruguay is off-and-on popular for offshore interests.

 

[palermochica]

I'm sure bajo cero will correct me if I'm wrong, but I think the rule is that if you are either have residency, citizenship or you are in Argentina for more than 180 days per year and thus you are no longer classified as a tourist and are deemed resident for tax purposes, then you are technically liable for global asset tax of.. 1.5%?

I'm not sure if anyone has ever been caught for evading this tax, but if you're here for less than 6 months a year don't worry about it.

 

[jenh]

I think one of the parts of the theory is that you don't necessarily live where your money lives - or you live there less than 6 months, therefore not triggering official residency even if you are a citizen.

The US is one of the few countries that taxes earnings on its citizens abroad even if they are both non-domiciled in the US and their money is made outside.

 

[palermochica]

This is what I was hoping someone with more knowledge would come along and correct! My point was that I don't think it's a suitable 5 flag country as I understand the law to mean that you should pay global asset tax if you are one of the following, regardless of how long you spend in Argentina (case 5 is the exception):

1) Are argentine
2) Have citizenship
3) Have permanent residency
4) Have temporary residency (as long as it's valid for 1 year and not less)
or 5) Are a tourist who is in Argentina for more than 180 days per year (1 Jan-31 Dec)

Basically (for financial reasons), you don't want to be a citizen, you don't want residency, you can't leave your assets and expect them to be worth the same when you come back to them, you can't earn/grow a business, and IVA, cost of living and inflation are high. i.e. none of the flags apply and it's a bad place to be a PT!!!

 

[jenh]

I am a temporary resident on a work visa and definitely don't have to pay any kind of taxes on assets.

 

[oogabooga]

Just curious to know who on this forum is a fan of five flag (or six flag if you prefer) theory and how are you doing it? Are some of you who are pursuing citizenship here doing it for this reason? Where are your other flags?

(If you have not heard of it - http://en.wikipedia.org/wiki/Perpetual_traveler)

If you're serious about the PT lifestyle, you should check out these two sites:

http://www.sovereignlife.com
http://www.sovereignman.com

Both sites have free info, but the best info is as a paid member.