Identificación y clasificación de Temas Importantes

People with a normal middle class income often pay a third to half of it in income taxes. They don't have to pay any taxes and they need not move to a tax haven to obtain tax free status. There is a long list of countries which do not tax world wide income at all: they tax only locally earned income. Note carefully the distinction. In these countries, as long as one does not have a local office or locally visible business interests, all remittances or money sent into the country is tax free. Great Britain is like this. As a result, thousands of super rich Greek ship owners, oil-rich Arabs and the entire super rich population of the Nordic countries are living in London suburbs. Dubai is another of the latest tax havens to welcome high net worth expats.

In some countries there are fancy little distinctions like whether the money you live on is 'capital' or 'newly earned income,' or if it comes from 'royalties.' In Ireland, for example, a foreign artist, writer, composer or creative person can enjoy income from all of those sources and live tax free. But

rents coming from Irish or non-Irish properties and remitted into Ireland would be taxable income.

complicated and the weather too cold and damp. They moved on.

Thus, if someone wants to live somewhere like Ireland and still be tax free, it is necessary to get a lawyer or tax accountants to handle things. In such countries the rules are complex. For those of us who are not in the multimillion dollar/pound/Euro class, it is easier just to be low profile and stay off the radar. If we are wealthy enough, then renting or buying in a tax haven may be a good idea. Andorra is known as the tax haven for the middle class (retired academics and such who like skiing - and drinking, but who are too poor for Monaco.)

Yet there is a long list of nice places where a foreigner can live high and even flaunt an income from abroad while remaining tax free. Such countries fall into two classes:

NO TAX: most of Latin America (for example Costa Rica or Paraguay), Great Britain and

Ireland (if you are not British nor Irish), virtually all small Island Nations. These islands include Bermuda, Cayman, Turks, Bahamas etc.

NO TAX ENFORCEMENT (AGAINST "LONG STAY" FOREIGNERS): Italy for non-

Italians, virtually all of Asia, Africa, and Latin America, New Zealand, Southeast Asia, Philippines, Thailand. The Third World generally is tax free for the upper classes. Needless to say, this writer thinks that flaunting wealth where you live is always a big mistake. If one must flaunt, it is best to do it in resort-type places where you won't be around for too long. Or in tax havens where there are no taxes. We discuss these places in greater depth in our country sections. Further, we plan to do very extensive country reports with a PT angle. These reports will be written by or in conjunction with PTs who actually live in those places. Contact the publisher if you want to write, sponsor or commission such a report.

SPECIAL DEALS: In Switzerland or Liechtenstein, one can negotiate a tax deal before

immigrating. In the USA, Canada and most other high tax countries, a potential immigrant can legally (before moving) put assets in a trust and arrange for wealth to accumulate tax free abroad. To get pocket money, it may be possible for the trust to lend you money or pay certain expenses. There are many legal ways to do things, but these considerations are mainly for our readers with a net worth upwards of a few million dollars or Euros.

For us poor folks with a mere million or ten, the simpler solutions work better and are more cost effective. Remember, all registered readers of Bye Bye Big Brother do get one free e-mail consultation where their hypothetical situation can be reviewed and recommendations made. Obviously, e-mail questions should be kept short. We do not even want to know your real name - just the name or number used on the registered copy of BBBB.

This service is limited by time available. Major personal guidance sessions requiring huge amounts of research, time and hand holding can't be offered for free, obviously. But we also refer people to online groups of PTs who may be of help to novices.

Chapter 7: THE PT CREDO

Becoming a PT is not a static thing that you can do once - and then, like obtaining a diploma, just hang it on the wall! Neither is it a set of instructions you can blindly follow. PT is first and foremost a

way of thinking, something more than a mere occupation or even a lifestyle. It is a state of being.

The variations and possibilities are infinite. PTs have real freedom in an unfree world.

PT is elegant, simple, and requires no accountants, lawyers, offshore corporations, nor other complex arrangements. Since the income of most new PTs is immediately doubled, and most frustrations of life with Big Brother are instantly eliminated, the logical question is only: "Can you

afford not to become a PT? "

Unlimited, untaxed wealth and the power to dispose of it as you please is one of the major benefits of becoming a PT. We can work and be paid in full (without withholding tax or deductions) - and then spend our earnings on what gives us pleasure.

Until you become a PT the range of opportunities denied to you is inconceivable. We don't miss things we are unaware of. This book will raise your consciousness as to the nature of freedom and ways to rid yourself of limitations.

Most governments pay lip-service to the absolute freedom to travel. But in practice, every government severely limits travel with passports, visas and other requirements.

The PT, once properly equipped, operates outside of the usual rules, gaining mobility and a full slate of human rights. The value of these rights cannot even be perceived by people who have never experienced them.

Tax havens become an important tool of the PT with an active business. Tax favored corporations and trusts provide an interface to the more permanently settled world -just as a flag of convenience does for a ship.

The message of PT is not, however, to encourage greed, lust, irresponsibility, immorality or any of the other seven deadly sins. The effect of PT being popularized will be to release creative souls

from the intolerable burdens of coping with Big Brother.

You don't need to found a new country or displace someone else to make yourself a sovereign individual. The PT need not and does not want to dominate other people. He or she must only be willing to break out of a parochial way of thinking: the PT must be superior only in that small area located between the ears. We speak of the potential PT now in terms of wealth, talent, intelligence and creativity. Who is this PT in the upper minuscule 1% of the population? It might well be you!

From PT, 1995, reprinted with permission

Chapter 8: 'FREE' INVESTMENT ADVICE WILL COST YOU A LOT!

In this short chapter we explore why most so-called 'investment advisors,' stock brokers, insurance agents and even private bankers will disregard your best interests and put you into deals that pay off for them - not you!

In most cases, your interests are a distant second to selling the high-mark-up products they are pushing. For anyone who wants to preserve their capital or try to make money investing, this short chapter may be the most important in the book!

NO SUCH THING AS A FREE LUNCH

Rule number one: Passive investments are not nearly as good as your own business deals. The best way to deploy your capital is where you produce a product or service, or add value. Perhaps you have some expertise in marketing or trading, and can buy cheap and sell dear.

Having said that, you will probably want or need some passive investments. What is a passive investment? It is where you simply hand over your money and then have no further active role to play. After retirement or for parking your excess cash (of which we hope you will have a lot), passive investments are the 'no-brainer' deals that you use to preserve and store your assets.

Here's the warning! When you choose to invest in a field where you have no expertise, BEWARE OF INVESTMENT ADVISORS!

Typical 'investment advisers' are only interested in selling financial products on which they receive a percentage of your investment. This is called a commission or 'up front load.' How do you think investment advisors usually earn their daily bread?

It behoves you to inquire in writing exactly how your 'investment advisor' is compensated. Do not to invest until you are satisfied with the answer! If he is paid a commission or percentage depending on the deal he chooses for you, run. Do not walk, but run away as fast as possible.

The only thing worse than an investment advisor who takes a slice of your cake off the top before your money goes to work for you, is an inventor or a friend (particularly a lover of the opposite sex) who wants you to invest in their 'sure fire' new business venture. But back to investment advisors:

Most investment advisors are anything but objective. They push only the deals where they get

the highest commissions. Maybe they work with a bank, insurance or annuity plan, or an investment trust or fund. Imagine they have a deal with one of these outfits paying a 5% commission on all funds raised. Why would any investment advisor recommend any other deal where you stand to make out

like a bandit and they get nothing?

Even most stock brokers and bankers are more than likely to sell you their own more profitable (for them) 'in house packages,' rather than provide objective guidance.

Once, at the time of the Chrysler-Daimler-Mercedes merger, we decided that the secondary new issue stock was going to be a dog. My stock-broker (who had discretionary investing authority) agreed. Then a month later, in spite of our conversation, 1 found he had purchased a substantial amount of this dog stock. It had already dropped in value from the issue price. "Why?" I asked. The answer: "Our firm is a lead underwriter. The word went out from the boss that all of us brokers - if we wanted to keep our jobs - had to place an allocation of stock with our high-net-worth clients." Here, as usual, the client's interests were not even considered!

With new information resources on the net and such tools as insider trading data, you can make intelligent decisions on individual stocks. There is no good reason to allow others to have discretion over your investments. This is particularly true if they are compensated by front end load commissions

- payable whether you win or lose.