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In this article, I want to bring you closer to the flag theory, because in times of globalization, you no longer just have the option in your home country to start a business, open a bank account, depending on just one nationality or just one To leave the health system. This and many other services can now be distributed as small “flags” on the world map. After all, our entire life is diversification, and it is not a good idea to leave all the eggs in one basket, or in one case in one country.
To put it simply, the flag theory is about distributing your flags worldwide, so that no jurisdiction can take sole control of you.
“Go where you are best treated and put your flags in countries that offer the best service.”
In my list there are 10 important flags and 3 optional family flags which I will introduce to you now:
1 A good citizenship in a country where foreign income is not taxed
As explained in detail in the article on “different tax systems”, there are several types of taxation systems (territorial taxation, residence taxation, and taxation linked to citizenship). A good citizenship provides a high degree of freedom of travel to as many countries as possible and is ideally located in a country with territorial taxation (tax exemption on foreign income). However, the first flag is also the most difficult one at the same time as you can not influence which country you are born into. Fortunately, there are now many opportunities to get good passes in countries like Panama, Paraguay or Russia, for which a detailed article is planned. At best, one has several citizenships at the same time, so as not to be dependent on a state which could suddenly come up with the idea of linking the tax liability to citizenship. In addition to Eritrea and the US, which have already implemented the system, European politicians also support the idea of linking the tax system to citizenship.
2 Permanent stay in a tax haven
A country with a good citizenship does not necessarily have to be good for you to live in, as everyone has their own preferences and needs. Although Panama has a good passport, other countries such as the Philippines or Georgia have a lower cost of living or other benefits. Especially those who would like to live on the beach or speak English rather than Spanish would not want to live in Central African Paraguay, or in the case of the Spanish language in Panama.
3 A good place to do business, and your income
Your company should ideally be in a tax haven to pay as little tax as possible and avoid accounting. However, the reputation of a country also plays a role, as hardly any bank in Europe, e.g. will open a bank account for a Belize company in the Caribbean, and it is not possible to work with many companies like Amazon. Who e.g. Amazon FBA, should set up a European company in a country with the lowest possible taxes. A good choice would be because e.g. a company in Estonia that can be founded through an e-residency. There will be an article for that. In my article on “The Different Tax Systems”, I have already explained one way to legally reduce even the low 20% flat tax on distributions of the Estonian company.
4 Good bank accounts/assets in selected countries
As explained in detail in my article on “Offshore Banks, one should pay close attention to which banks should be entrusted with their money and how vulnerable the country is to the country in which they are located. Is there a deposit insurance? Does the bank have a high level of liquidity? What about the service? Can the bank meet my individual needs? The big advantage of offshore banks is i.a. as well as seizure security vis-à-vis the home country, citizens from Greece or Cyprus would have been better able to hedge against the restrictions and expropriations of the local bank accounts. The same gild course also for investments such. Real estate, which apart from a good price, and a good return is not located in a country that is known to expropriate home ownership. A current example would be the refugee crisis in Germany, where commercial facilities and vacant flats were partially expropriated by the state, in order to provide them again to the refugees at the expense of the taxpayer. Good countries for real estate are e.g. Philippines, Panama or Georgia.
5 Good marketplaces where you can buy cheap
This flag should already know some people who have already imported goods from abroad (for example, China or Hong Kong). Buy your “toys” where they are cheapest and, as a business, “buy good quality products for a cheap price and sell them more expensive for your importing effort”. In order to avoid customs duties as much as possible, it may indeed make sense for various categories of goods, such as electrical appliances, to import and export within the EU.
6 Distribute online company structure in good countries
As explained extensively in the 3rd flag, depending on the business model, there are various possibilities of founding a suitable company in selected countries, and of course, there is also the possibility to set up several companies in different countries, which pursue a certain purpose. So you could start a business in Estonia for a European online shop, Amazon FBA, or even European real estate. A company in Hong Kong or Singapore, in turn, to do business in the Asian / Chinese market, and for everything else, a tax and accounting-free business in Belize or Canada.
7 Medicine Tourism
Most people do not have much choice when it comes to the choice of health insurance. The health care system is highly regulated, especially in countries like Germany, and thus offers few opportunities for the emergence of competitive alternatives. In addition, in countries like Germany, it is imposed on people, which has allowed health insurances over the past few decades to allow themselves to be more expensive and to continue restricting their service. It is different for emigrants and perpetual travelers because in that case, you can look at different countries, and for an international health insurance, such as. “Globality Health” or “CIGNA”. For so-called luxury surgeries, such as the layering of the eyes or dental implants, it may be worthwhile to choose a good country and to pay “cash”. Popular countries for dental implants are e.g. Costa Rica, or even Turkey, as I got told by a friend on my journey through the Caucasus.
8 Outsource employees/work processes for your company to good countries.
In general, I am not a friend of permanent workers and prefer to work with freelancers. Especially for entrepreneurs, who earn their money over the Internet, can search for employees worldwide. Especially in low-cost countries, there are opportunities to find reliable freelancers/workers who can claim less pay than their competitors because of lower living costs.
Living on an international level does not mean you have to forego hedging. On the contrary: Through global selection in different countries, you pay due to increased competition significantly less for better performance spec. In addition, you can decide for yourself which insurance you would like to complete at all. Of course, you are still very young and do not want any health insurance. However, this would be at least for the absolute emergency, such as a serious accident or similar. recommended. Above all, you pay with International health insurance only one-quarter of the price of your private health insurance in the home country, as an international self-employed with the same or even better scope of services.
10 Privacy solutions
At the time of Internet, censorship, and hackers, it is very important for his privacy, and to protect him from censorship. Offer high privacy laws. Good countries for this are e.g. Iceland, Norway, the Netherlands, and Switzerland. What I recommend for the first time is “ProtonMail” as an e-mail provider from Switzerland, Orangewebsite for website users, Jottacloud for cloud storage from Norway and unseen.is as an encrypted alternative for a chat and video telephony.
Let us now turn to the mentioned family flags:
1 Good education for your children
Unfortunately, in many countries, educational obligations, or at worst, school duties (Germany and Sweden), where children are forced to spend their childhood in state, are threatened by violence
Educational institutions spend the free development of the child. It should be with the support of the parents, the decision of the children, how it wants to develop, and which mentors it wants to learn from. A state educational monopoly, whose heartless collective system is led by emotionless bureaucrats, can not fulfill the individual needs of children. At the moment I can recommend the book “Educational diversity instead of educational simplicity”.
So what is there for possibilities?
For homeschooling or unschooling, Eastern Europe and France are particularly suitable. It’s best to turn directly to the freelance families who have already successfully followed this path, such as “The Sundance Family” or “Dagmar Neubronner”.
2 The road to second citizenship with the right spouse
Unfortunately, it is difficult to control where love ultimately falls, but it may still make sense to fall in love with a foreign partner who has good citizenship to gain another citizenship through marriage, but one should be aware that new commitments are made by marriage, and in certain countries the woman can completely exempt the man in a divorce. In the case of a marriage, it can make sense to start a foundation and officially break away from his fortune.
3 Enable your children to acquire good citizenship
Since the place of birth decides which citizenship a newborn gets, it makes a lot of sense to think about it early enough in which country one resides when the birth is approaching, so can the child very early a good citizenship in the cradle be laid. As an example, u.a. Panama very good, due to high freedom of travel in up to 140 countries, and a stable economy which is on the upswing. But other countries like Georgia, the Philippines or Thailand could be interesting for a citizenship.
4. Adoption / foreign adoption of children
The younger a child is adopted, the better adoptive parents can relate to the child. But that is not the only advantage, because with a foreign adoption, besides the kindness of the child, care can also be taken to see whether it has a “future-proof” citizenship. Also, this would be an option for rainbow families, which can help protect children from heartless/overburdened carers and Ritalin contaminated homes.
The following documents are i.d.R. needed for an adoption:
– Proof of earnings and assets
– Police certificates
– CVs of both partners
– medical certificates
– birth and marriage certificates if necessary
– A filled-in application form or a self-written application
In addition, a questionnaire should be completed, in which, among other things, the desire to have a child has to be justified, religious and secular conceptions of education, and what happens in the case of separation of the couple from the child.
So, that was the big flag theory. For the 4th flag, I can recommend my book “Because Your Money Belongs To You!”.
Good! Now it’s up to you to maximize your freedom! At the end, I have prepared a special surprise for you:
The official music video of the big flag theory: