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Five Flags Theory

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Artur Posted: Thu, Jun 24 2010 5:17 AM

Are you familiar with it?

For those of you who don't know about it, the Five Flags Theory (there are variations with 3 and 6 flags) is a theory that advocates dividing some key aspects about yourself (citizenship, residence, business base, etc) and having each of them associated with a different government, taking advantage of the different legislations in each field, and avoiding showing any government the fully picture of yourself.

Do you think it's a useful way of achieving higher freedom? Do you know of anyone who uses this method?Which countries are most used in each field?

Thanks for your opinion.

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FNU-LNU replied on Thu, Jun 24 2010 7:03 AM

There are any number of strategies and potential benefits to be found. The concept is no different than diversifying an investment portfolio. Obtain citizenship in a country with good (or at least less onerous) tax and extradition laws, do business and invest in an economic free zone, bank in a stable country with privacy laws, and reside where you find the right mix of freedom, lifestyle and prices. There are also considerations to be made regarding the travel benefits of different nations passports. I am currently exploring citizenship options; I have been an Expat (US citizen) for 3 years, in various nations, and I have banking, investment and precious metals in several different economic jurisdictions. It requires a more active attention to detail and planning, as well as a perspective shift for most people, but once you've made the adjustment the peace of mind is wonderful.

God blessed me

I'm a free man

With no place free to go

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ricarpe replied on Thu, Jun 24 2010 8:11 AM

@ Artur: I have read about the "multiple flag" concept before during my undergraduate studies.  I imagined it being easy to pursue this lifestyle in pre-EU Europe--although it's probably still possible today.  I could also see it possibly working in Asia.  I always found it interesting and part of the draw to attempting an ex-pat lifestyle, but I couldn't pull it off.

@FNU-LNU: I envy you.  How did you do it?  How were you able to find employment?  Are you stil liable for US Income Tax?  I have other questions, but they elude me at the moment.  Shoot me a PM if you could.  Thanks.

"All men having power ought to be distrusted to a certain degree." -James Madison

"If government were efficient, it would cease to exist."

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