The idea of a perpetual traveler is based on the theory that if a person keeps moving to different countries continuously and does not stay in one place long enough, he/she may be able to garner additional benefits in various domains. The domains include saving of tax-payment and social security deposits, avoiding compulsory military service in some countries and other social obligations and duties of being a resident. The idea is also popularly known as ‘nomad capitalist’.
A second citizenship by investment program also supports the idea of living life as a perpetual traveler. If anything, it only makes it easy for individuals who wish to change countries like they hop on and hop off the buses, to travel without the hassle of visa and other travel documents like sponsorship and establish bases for living in each country.
Characteristics of a perpetual traveler
To be stateless, continuously move and still manage to not lose your rights a world citizen is no less than art. Following are the characteristics that differentiate a perpetual traveler and any other person:
- Perpetual travelers think differently: Neither is it the nature of humans to think differently, nor is the culture of traveling in search of things that satisfy the basic needs the same anymore. Individuals who choose to live as perpetual travelers are those who dare to challenge the status quo and their own inhibitions by taking a different route instead of living the same lives as everyone. They do not ‘settle down’ as and when the society dictates but move when and where they wish to be.
- Perpetual travelers have a strong network: Traveling around the world like a nomad who also manages their personal lives efficiently by rigorous planning often makes an individual’s personal connections stronger. People end up meeting a great diversity of people who either have a similar mindset and are looking for more from life or people who are totally different in terms of values and ideals. Overall they build a strong bond with people and know more people in general than people who settle in one country for obvious reasons.
- Perpetual travelers have a diverse skill-set: Perpetual travelers are also called permanent tourists. This means that throughout their journeys, they pick up a variety of skills that are necessary to sustain in different environments and build a nomadic life. They encounter and pick up elements from different cultures and languages, making them more adaptable and interesting as people.
- Perpetual travelers encounter more opportunities: Every country that a perpetual traveler travels to, has a different culture, different market, and hence, different business opportunities. They can also innovate by mixing and matching different opportunities to different markets, thereby creating strategies no one else can think of, without the global bent of mind.
The Flag Theory
The idea has also been represented as ‘flag theory’ by Harry D. Schultz, who was also an investment pundit. As per his proposal, everyone should have a second citizenship and get an address and a passport in a tax haven and keep their assets outside their home country. Later, more aspects or ‘flags’ were added to the theory about how passport, residency, asset haven, base of business, and the place where one spends the money should all be in different countries. This theory has been extended to 13 flags with more factors like insurance and medical tourism.
Best Places For Perpetual Travelers And Second Citizens
After considering the flags, the next vital decision is which countries to be in. Tax saving and other factors are important, sure. However, the decision of the country to be in is much more than that. It is also about the kind of culture, weather, and lifestyle a person wants to live. Initially, one may take it easy and try out different countries before deciding the best ones. Extensive research should be conducted before making a decision.
How to become a Perpetual Traveler
In order to become a perpetual traveler, an individual needs to deregister as a federal resident of the country they belong to. This is the most important step to ensure that they are not taxed as a resident of any country legally. After that, it is essential that the individual works on building an understanding of tax laws and other legalities of different countries, especially the tax havens. Accordingly, then they can decide how long should they stay in each country. Usually, to avoid being a tax resident of a country an individual should not spend more than 183 days in the country. However, this may differ in some countries.
Being a perpetual traveler is not just about the benefits of tax-saving or avoiding other residential responsibilities, it is also a lot about adopting a different lifestyle and being able to cope up with the difference, especially in cases when it feels overwhelming and too much pressure. The decision should be made after an in-depth analysis and professional opinion. Getting second citizenship by investment in countries only helps manage the work hassle in between all the travelling.
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