The trifecta strategy

[iserveonemaster]

I’m 19 and I’m just starting (relatively) researching into diversifying my assets internationally, including myself

I’m reading a book which mentioned the trifecta strategy, as well as the perpetual traveller strategy (among others). If I’m correct this consists of constantly moving around, never spending enough time in one location to be counted as anything but a tourist, therefore freeing you of tax obligations.

My question is -
Is it possible to do this and not be a resident of any country, constantly moving between countries before you are counted as a resident there. For example, I currently live in England so would I have to renounce my citizenship to be able to do this and technically not be classed as a resident anywhere

Just a general thought but if possible I’d like to try it
Forgive me for any errors or miss-info and any help would be greatly appreciated

 

[gabby_]

@iserveonemaster I don't think any country will let you renounce if you'll become stateless.

 

[donttakesixes]

@iserveonemaster You wouldn't need to renounce your citizenship to accomplish this, as England does not tax people living and earning money elsewhere. And yes, the strategy works well. I know a number of people doing exactly this for many years now.

 

[iserveonemaster]

@donttakesixes I read that you have to be working full time overseas to be able to renounce my uk residency. Is this true and do I need to provide proof of it?

 

[iserveonemaster]

@donttakesixes Also do you have any further reading or general things I could look into so that I can better my knowledge on this topic

 

[hiatus]

@iserveonemaster The UK won't let you renounce if makes you stateless, and you don't need to renounce UK citizenship to stop being a UK resident anyway. And if you were a stateless person, you'd have no passport and thus be unable to enter any country. This is such a bizarre idea that I suspect this post is fake.

Assuming it's not, one other point: I don't know what your income source is going to be, but if you're planning to work remotely while travelling, know that some countries are fine with this whereas some countries specifically disallow it and will not let you into the country if they suspect you're going to do it (e.g., if you have no source of income other than remote work, it raises their suspicions). Research the rules of a country before travelling there.

There are other tax considerations related to banking and payments for whatever your income source is, not to mention the health insurance issue. What you're contemplating is doable, but only by people who are well-informed and attentive to the important details. Half-ass your way through it and you'll set yourself up for a lot of trouble.

 

[iserveonemaster]

@hiatus Not a fake post just didn’t consider the implications of becoming ‘stateless’ lol

 

[stephendisraeli]

@iserveonemaster Being stateless is a very bad situation. Some countries will not allow you to renounce your citizenship if that would lead to statelessness.

Just think about how you want to travel if you do not have a passport for starters.

If I’m correct this consists of constantly moving around, never spending enough time in one location to be counted as anything but a tourist, therefore freeing you of tax obligations.

This does not happen. If you are a tourist, then you do not have a work permit, usually. Also, tax treaties usually contain a whole list of tie-breaker rules to figure out someone's tax residency.

 

[iserveonemaster]

@stephendisraeli Would having remote income negate your work permit point?

 

[stephendisraeli]

@iserveonemaster Income from work is sourced where the work is performed. This means the place where the person performing the work is physically.

It does not matter where the employer is, or that the person performing the work is accessing computer that is elsewhere over a network.

Passive income (e.g. dividends) can sourced in a different country. But that is not income from work.

 

[jameslog]

@iserveonemaster Maybe your other goal being so young is to just maximize your retirement contributions and when you retire, you will have so much money you won't have to worry about taxes.