Perpetual travelers are people who
live all the year from one place to another as itinerant or such
as life style. They are not considered a legal resident anyplace.
For that matter they are not compelled to pay some kind of taxes.
They may spend the majority of their time in other countries,
never staying long enough to be considered a resident. If you
are one of them or planning to be one of them you need to know
some facts:
If you spend most of the
time in a low tax jurisdiction you will save some income
taxes, especially those get it out of your country. For
example, one can spend up to 122 days each year in the
United States without being considered a resident or being
required to file a US tax return.
You will be considered a U.S.
resident for tax purposes if you meet the substantial presence
test for the calendar year. To meet this test, you must be
physically present in the United States on at least:
31 days during the current year, and
183 days during the 3-year period that includes the current year
and the 2 years immediately before that, counting:
All the days you were present in the current year, and
⅓ of the days you were present in the first year before the
current year, and
1/6 of the days you were present in the second year before
the current year.
There is theory that is an extension
of W.G. Hill's original "Three Flags" approach.
Whether to minimize governmental interference (via taxes or
otherwise), or to maximize privacy, the theory proposes that you
arrange for each of the following to be in a separate country:
1. Passport and Citizenship - in a country that does not tax money
earned outside the country
2. Legal Residence - in a tax favorable regime jurisdiction
3. Business Base - where you earn your money
4. Asset Haven - where you keep your money
5. Playgrounds - where you spend your money
Many perpetual travelers use Panama as a second Passport country or
recently with the real estate boom as their legal residence. If you
want to use an offshore jurisdiction we recommend first to contact a
domestic tax expert.
Perpetual travelers are people who
live all the year from one place to another as itinerant or such
as life style. They are not considered a legal resident anyplace.
For that matter they are not compelled to pay some kind of taxes.
They may spend the majority of their time in other countries,
never staying long enough to be considered a resident. If you
are one of them or planning to be one of them you need to know
some facts: 