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5 FLAG THEORY

The Flag Theory developed by Harry D. Schultz is about generating more freedom, security, privacy and wealth through international structures.  We at Flag Strategies work with you to develop the right strategy based on the 5 Flag Theory.

1

Nationality 

This is usually your country of birth. Ideally, it is a country that does not tax income earned abroad. As a holder of citizenship, you are subject to rights and obligations that can be used to your advantage or compensated. 

2

Residence permit in the second country

This is the place where you make your money. Depending on the type of business, there are legal tax optimization options. In the best case, your company and/or your holding structure is completely exempt from tax in order to achieve a maximum competitive advantage. 

3

Third country bank account 

In these countries (offshore) you hold savings and make investments. States that protect privacy and are economically and politically stable are suitable here. 

4

Real estate investment in forth country

Places where you want to spend your time. A villa in Mallorca, a penthouse in Dubai or a farm in South Africa. Depending on your taste, you "play" tourists in this country and often structure your property in tax-optimized holding structures. 

5

Second Citizenship

Conflicts and unforeseen events can mean that your freedom to travel is restricted, you are subject to sanctions, or you are drafted into the military. A second passport can still guarantee freedom and security here—ideally, a passport with the possibility of entering many countries without a visa.

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