- July 7, 2021
- Posted by: admin
- Category: Bitcoin
Being free is an innate desire; it is something humans strive for and fight for. Some actually achieve it. In a world so large and so open, it is pretty startling to see freedom diminish. Governments keep finding ways to track our income, businesses, locations, activities and basically everything else. Being free in the so-called free world has never been this complex.
Enter flag theory, a framework toward becoming truly free. It’s not just about the freedom to move, but about being free of crushing taxation, political instability, government limitations and the ever-growing intrusions on our privacy.
What is flag theory?
Flag theory, otherwise known as the perpetual traveler theory, was a concept first introduced by investment pundit Harry Schultz in the 1960s. He conceptualized that for people to gain ultimate freedom, they should “plant flags” in different countries. Schultz said people were to get a second citizenship in one country, establish an offshore business in another, then reside in a tax haven, they would truly be free. His philosophy was initially dubbed the “Three Flags Theory.”
Since Schultz first introduced it to the world, flag theory has undergone significant change, which is logical considering how technology is rapidly changing the world. Consequently, the theory has become more comprehensive. The current doctrine states that, to be truly free, one should:
- Obtain a second passport of a nation that doesn’t tax non-residents
- Establish a company HQ in a business-friendly tax haven
- Reside in a low-tax country with a high quality of life on a resident permit
- Spend your time and money in “playgrounds,” which are countries with low VAT, no VAT or no sales tax
- Diversify your asset base throughout countries with stable offshore banking systems
Each of these constitutes a “flag,” and the more flags you plant, the more freedom you gain. One gargantuan flag missing, however, is investing in cryptocurrency: the ultimate route to financial independence.
Waving the crypto flag
Adding blockchain assets as one of your flags takes freedom to the next level. However, to do so, you need to carefully plot out your map and choose suitable destinations to complement your cryptocurrency portfolio.
There are many crypto-friendly countries out there, but setting up shop may be complicated in some of them. Therefore, designing a portfolio of citizenships, residencies and business locations must be well thought-out and achievable. That is where global mobility assets come in.
Countries such as Portugal and Malta are some of the most crypto-friendly developed nations. Interestingly, you can establish legal residency in either one by investing in real estate.
Other nations in the Caribbean, namely St. Kitts & Nevis, are also extremely pro-crypto, offering a landscape perfectly suitable for high-end cryptocurrency investors to reside and operate in. More importantly, however, they are tax havens that boast extremely popular citizenship-by-investment programs. For example, you could become a St. Kittian in a matter of months. This indeed counts as the second citizenship flag, but the Caribbean nation also fits the bill for crypto investors.
St. Kitts contains many Bitcoin ATMs, while the island of Nevis is one of the world’s foremost secure asset tax havens. However, it doesn’t end there, as the Eastern Caribbean Central Bank, based in St. Kitts, is launching its own blockchain-based currency dubbed DCash.
The beauty of opportunity, however, lies in the fact that St. Kitts & Nevis is just one option out of many. Flag theory is no longer just a concept; it has been proven to be achievable time and time again, and as more crypto investors look to gain financial freedom, the world is set to see an abundance of new flags.
Why does flag theory matter to crypto investors?
The answer is simple: taxes. That is the main reason, as some people are fed up paying 40% income tax or a colossal capital gains tax. The theory part of perpetual travelers is that they can reach a 0% tax rate if they have a strong setup, which is doable. Some, on the other hand, may agree to a 10% tax rate to live someplace better than where they currently are, and therein is another allure of global mobility — customization.
Another important issue for crypto investors is initial coin offerings (ICOs), which are vital events that sometimes exclude certain nationalities. American crypto investors have a tough time with this, and instead of getting an intermediary or some complex backdoor shortcut to ICOs, a second citizenship elegantly solves the problem.
Political instability, economic fluctuations, government greed, heightened risks and more are just a few other reasons crypto investors have, and should, adopt flag theory. There’s also peace of mind. Just ask Roger Ver, who became St. Kittian by citizen-by-investment.
Crypto investors understand freedom. They were the first to adopt the once-new currency, comprehending its limitless and borderless potential, so shouldn’t they be able to enjoy the same privilege? We think they should.