Any thoughts on the 5 flags theory?

It's an awesome life if you like being alone. From experience, when a relationship goes south somewhere between Point A and Point B, it's usually a lot easier to walk away for both parties. So ... if your attachments are minimal, I say go for it. I lived under five flags (now called Six Flags, to include cyberspace as the sixth flag) for most of the 1990s and early 2000s and loved it. Miss it sometimes, and am pretty sure I'll be pulling up anchor once my kids are all grown.

Q Wealth Report is worth checking out -- I know Peter and several of the other guys at Q personally, and they are not armchair consultants -- most of them are living the stuff they preach.

Off the beaten course a bit, Nomadic Matt is a fucking awesome PT-of-sorts whose blog has a lot of ... less practical than inspiring stuff, plus links out to resources and other traveloggers.


Frank
 


Soupyone said:
My "internet monies" happens to be generated by a business I own, I'm not some CPA affiliate looking to work in Thailand...

Swiss Bank
+
Canadian Citizenship
+
Bahamanian Residence (the bahamas are only 30 minutes by plane away from where I am right now)
+
South Florida Correspondence office
+
Monaco Playground
=
Doing better than I ever would of been doing as an American drinking the two party kool-aid stirred up to pay for Uncle Sam's bullshit.

BTW, I don't know how much money you make, but I'm fucking liquid. I'm not worried about shit like social security.
Click to expand...

Where you American before you were Canadian?
 
eliquid said:
Where you American before you were Canadian?
Click to expand...

I'm American now whose setting everything up. Looking at real estate in Toronto right now, planning on moving in spring '11 (I made my first extended visit last year).

I already have the off-shore account and was reared speaking French so I don't have any issues in any French speaking nations. I just have to work on jumping through all of the hoops (including three years as a "permanent" resident) so I can become a Canadian citizen.

I'm just going to legally move up there for three years and go on vacation a bit when I feel antsy.

For the past five years I spread my time in-between Chicago & Miami so it's not like I'm not used to the lifestyle of living in-between climates.

I'm actually looking forward to the day I can renounce my citizenship and I plan on doing it in 2014. Only Americans and people who are poor coming to America seem to think that it's the greatest place ever!11

If I could afford it I would just do the whole fucking shebang in Monaco; but the girlfriend (of six going on seven years) refuses to live that far from family.
 
Once a citizen, are you actually going to live in Canada part time (6 months etc.)?

I ask because i'm almost positive you'd lose any health benefits if out of the province longer than that & Canada has less favourable tax rules for foreign income than U.S. from what I've read.
 
sarafina84 said:
Once a citizen, are you actually going to live in Canada part time (6 months etc.)?

I ask because i'm almost positive you'd lose any health benefits if out of the province longer than that & Canada has less favourable tax rules for foreign income than U.S. from what I've read.
Click to expand...

What have you read?

America is the only one that gives a crap about what you make outside of the country. If you are an American overseas you're still filing a tax return and they want the difference that isn't going to the country you reside in. Canada doesn't, that's the whole point of becoming a Canadian citizen... That and the death tax. I'm working this hard to create a legacy, not fund the war on terror.

You're only taxed on the income earned in Canada.

So you just legally reside in the Bahamas... Bahamas = Zero personal or corporate income or sales tax.
 
I would easier without kids but taxes eventually get you, I mean for someone who is'nt well off working is a must. Healthcare is another hurdle, I mean if you are all over the place and get sick, you better hope you are in a country or region where there a decent medical facility.
 
Here's what I read:

If you are Canadian citizen and have ties to Canada (bank accounts, real estate etc.) you are Canadian for tax purposes and you pay taxes on foreign income.

If you are a Canadian citizen but live permanently elsewhere, you are a non resident for tax purposes. You are NOT allowed to retain ties to Canada and its very hard for CRA to approve you as being non resident.

So I was confused as which route you're taking as you say you're looking for property but also intend to be abroad indefinitely.

I want to be able to retain ties to Canada but minimize taxes on foreign income so if you've figured out a way to do it, I'm all ears.
 
sarafina84 said:
Here's what I read:

If you are Canadian citizen and have ties to Canada (bank accounts, real estate etc.) you are Canadian for tax purposes and you pay taxes on foreign income.

If you are a Canadian citizen but live permanently elsewhere, you are a non resident for tax purposes. You are NOT allowed to retain ties to Canada and its very hard for CRA to approve you as being non resident.

So I was confused as which route you're taking as you say you're looking for property but also intend to be abroad indefinitely.

I want to be able to retain ties to Canada but minimize taxes on foreign income so if you've figured out a way to do it, I'm all ears.
Click to expand...
Buying a house now doesn't mean I'll own the house in 2014 (I'm just not going to throw away rent money for three years)... And why would I need a Canadian bank account? I already have two different international accounts...

Proving that I'm a non-resident won't be hard as I won't have ties... If you want to have ties then that's an entirely difference scenario for which I don't have an answer.
 
Soupyone said:
Buying a house now doesn't mean I'll own the house in 2014 (I'm just not going to throw away rent money for three years)... And why would I need a Canadian bank account? I already have two different international accounts...

Proving that I'm a non-resident won't be hard as I won't have ties... If you want to have ties then that's an entirely difference scenario for which I don't have an answer.
Click to expand...

This is true. Ok ya if you don't intend to have ties then its a brilliant plan to become a citizen as Canada won't give a damn what you make in Bahamas and seems like Bahamas doesn't give a damn what you make period. Tax free internet monies FTW!
 
vesper said:
I would easier without kids but taxes eventually get you, I mean for someone who is'nt well off working is a must. Healthcare is another hurdle, I mean if you are all over the place and get sick, you better hope you are in a country or region where there a decent medical facility.
Click to expand...

Delaware Corp
+
Florida office
=
No sales taxes

Ownership of Corp by an offshore entity, entity wholly owned by nonprofit entity
+
Bahamanian residency
=
Corporation pays taxes on employees & pays its share of federal income tax.

I'm essentially working to insulate myself from as much tax liability as possible.

There will minimal pass through taxation to me personally.

Never forget:

Tax avoidance is not equal to tax evasion.
 
sarafina84 said:
This is true. Ok ya if you don't intend to have ties then its a brilliant plan to become a citizen as Canada won't give a damn what you make in Bahamas and seems like Bahamas doesn't give a damn what you make period. Tax free internet monies FTW!
Click to expand...

I first learn of this when I saw Bobby Genovese doing it (he had a brief TV show), his office is right next to where I spent my teens. BOBBY GENOVESE

The tax shelter plan is ripped straight from IKEA...
 
I'm a Bermudian and Canadian citizen. Know loads of people who live in Bermuda a few months (if that) and spend the rest in NYC, Florida, Whistler, etc.
 
Soupyone said:
Delaware Corp
+
Florida office
=
No sales taxes

Ownership of Corp by an offshore entity, entity wholly owned by nonprofit entity
+
Bahamanian residency
=
Corporation pays taxes on employees & pays its share of federal income tax.

I'm essentially working to insulate myself from as much tax liability as possible.

There will minimal pass through taxation to me personally.

Never forget:

Tax avoidance is not equal to tax evasion.
Click to expand...
I fucked up.. nvm
 
Soupyone said:
BTW, I don't know how much money you make, but I'm fucking liquid. I'm not worried about shit like social security.
Click to expand...

Relax, I was just trying to offer some perspective. I don't know your situation or what your plan was (canadian citizenship for instance).

I just took a tour of SE Asia with some friends and family, all business owners and expats. Not just thailand but Laos and Vietnam too. Many are French, British, and American as well. One guy was just on his way back to England for free healthcare. I don't think any of them would be keen to give up their citizenship, thus they get screwed over with various rules in their host countries (owning property for one).

As far as FICA, yeah I would love to be able to throw that into a retirement portfolio, but now that I have it I'm not going to give it up. It's only "going broke" if we don't raise the retirement age and cut benefits, but it is better than nothing.

On a personal note, I watched my grandfather get Alzheimers in his 60's and live well into his 80s. So my investment plan is to have a large family and/or suck on the government teet. Sorry for all you randian types out there.

Anyways, I didn't know that about Canada. Thanks for the info and I'll have to look into that more.
 
@ngo @ricdes (hey why are you always afraid to meet in ch btw)

5 flags is difficult
3 flags is more doable with your own resources

your company must be registered in one place
your work must take place in another
your life must take place somewhere not related to either

the first two should be tax havens. the third can be anywhere, as long as the resident nation doesn't practice progressive due dilligence. if they do or, or are planning to... well, renouncing your citizenship is the only way to go

trouble is, since the crisis started, many many people have begun giving up citizenship to become hong kong, monegasque, suisse, andorra citizens etc... so these countries are making it either more difficult or just more expensive.

act quick.
 
You must log in or register to reply here.
Top Bottom