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Offshore in 2024? A long journey from Schultz to Milei: What are the best jurisdictions for a classic libertarian in our days

7/2/2024 8:00:00 AM
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The Five Flag theory is closely connected to libertarianism. Concepts like financial and personal freedom find their origins two centuries ago and they point out to one same goal: reducing the state's control and prioritizing self-development. A classic libertarian is a person in favor of the free market, low tax policies, and respect for private property.

In this philosophy, the Five Flag theory fits perfectly as it proposes diversification in both financial tools and approaches as well as in jurisdictions. Libertarianism is more popular than ever since its adepts are now involved in important political roles with the president of Argentina being a clear example.

Conservatives and libertarians: a struggle that shows the essence of human conflict

Since a libertarian president has been elected in Argentina the discussion of whether conservatives and libertarians can lead a country is constantly found in the media. In this scenario, it's worth considering the essence and history of libertarianism and how it grew into what it is today.

The five flags and the libertarian theory

The origins of the Five Flag theory are not well defined. Even though the concept of “perpetual traveler” is fully described in Hill's work, it was Sir Harry Schultz who first wrote about “the three flags” and how they can help global investors.

Schultz is considered to be one of the best-paid investment advisors in history and he focused on wealthy individuals who needed to protect their assets. Basically, the theory consists of diversifying the financial plan into different tools and jurisdictions, hence the term “flag”.

These first elucidations are very different from what we know as the five flags today. For a deeper understanding of the flags and how they can be applied, you can read our article about the Forever Free package. Initially, it consisted of three stages: citizenship or residency in a territorial taxation country, a business in low tax jurisdictions or places with solid incentives, and living in countries where personal freedom is respected.

In the 80s, Hill added two flags separating the citizenship from the tax residency and the place of business from the place of leisure. 

Analyzing this, it's clear why the libertarian theory has found an echo within the five flags as they aim to provide as much freedom as possible. In this regard, Mundo likes to clarify that freedom must not be mistaken for tax evasion or for reducing the tax burden to zero. A long time has passed since these theories were conceived and they must be understood in the light of an ever-changing 21st century.

While globalization brought us together it also facilitated a faster exchange of information between governments and cross-border entities, a move that became necessary to avoid fraud and the misuse of advanced financial approaches.

Anti-libertarian moves intend to discredit these tendencies on moral preconceptions and the false premise that for one to get richer others must get poorer, but this is not necessarily so. As a perpetual traveler and nomad capitalist publication, we understand the five flags and libertarianism independently from the fight between conservatives and libertarians. In other words, we believe in the spirit of the philosophy while we disagree and repudiate those who take advantage of complex tools to break the law and harm others.

One needs to take a look at history to understand that the implementation of theories is not always congruent with the principles stipulated in the theory in the first place.

More information

Let's go back to Ayn Rand’s work to name a reference and inspiration for the five flags and the classical libertarian movement. In her work, Rand states that a person's freedom must be above everything else serving the purpose of unlimited self-development. She also states that this freedom is for everyone hence nobody is entitled to breach the other person's right to their own freedom.

Almost a century after this we can look at famous libertarians today, for example, if we ask ourselves who is the president of Argentina. Last year the southern nation made the news not only for winning a football championship but also for electing the very first self-proclaimed libertarian president.

The best jurisdictions for a classic libertarian

Why choose Panama

Independently of who is the president of Argentina, and who is Milei, it's time to take this analysis into conclusions that we can use and apply to our financial plans. In this sense, Mundo recommends our favorite country for a classic libertarian or a Five Flag theory follower. 

Even though the president of Argentina calls himself libertarian we're talking about a nation that's far smaller in size yet grand in what it has to offer. We choose Panama for its unparalleled possibilities encompassing various aspects.

What a country has in immigration opportunities, another one lacks in financial incentives, location, or legislation. If we consider the country's possibility to tick all the boxes, we can see how close it gets to being the perfect place for a classic libertarian. 

Real estate

In Panama, the real estate market has reached the peak of good taste, design, comfort, and luxury. Thanks to experienced developers there are plenty of units available in high-end projects across the country. 

The Panama Canal

Considered one of the greatest engineering works of the 20th century the canal meant a radical change when it came to international trade and navigation. Since Panama obtained the right to manage the canal over two decades ago the country grew considerably and became one of the key financial hubs in the region.

Residency programs

With the canal came new opportunities and these opened the doors for many foreigners to settle in Panama. The government launched a variety of residency programs that cater to different needs. 

Free zones

Through smart incentives, Panama supports business and innovation, especially in areas like Panama Pacific and the Colon Free Zone. Companies and startups can access incentives, tax reliefs, and special conditions to help them thrive.

Excellent banking and corporate sectors

Regarding legal entities, Panama offers the foundation and a solid corporate sector. It's supported by a banking system that's used to international clients and oriented towards business.

Disclaimer: this article represents the opinion of the editorial team and must not be considered to be legal advice on investment or taxation. Applying tools within the five flag framework requires expertise and research and it must be done with the help of a certified professional.

Why famous libertarians today choose Panama

Very few countries have a set of conditions that are considered to be optimal. Like we've stated in other articles, there's no such thing as a libertarian paradise. However, we can find a place with a set of benefits that serves our plans.

Panama doesn’t have a libertarian president, but it has witnessed unbelievable growth and is now entering an exciting new stage after the election of President Mulino.

Mundo is happy to present its on-site team with ample expertise on Panama real estate, corporations, banking, taxation, foundations, free zones, and lifestyle. Get in touch now and contact your Mundo Expert.

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