The Gringo Motorcycle Diaries & The Income Free PT Lifestyle

[The following post is written by Director of TDV Offshore, Paul Seymour]

It occurred to me, as my new wife pointed it out to me, that I hadn’t published anything for quite a while. First, I’d like to remind you that, in my last, or maybe two articles ago, I urged you all to move some over-valued USD to a safe jurisdiction, and while you were at it, get some Swiss Francs instead. 

With a move of only USD 10,000 into CHF, your profits from the revaluation of the CHF would have covered the fees to move your funds to safety, and get diversified.  Very few took heed.  Hate to say I told you so, but..

Secondly, yes, while on the road throughout South America, while I was in in northern Perú to be exact, I was contacted by a new client.  Nothing new about that, as I talk to potential new clients all the time.  All of our clients are like-minded freedom-lovers, and I’m blessed to be able to work with such intelligent, refreshing people.

This client, however, turned out to be a bit different, and over the course of a few months, we made plans to meet up in Buenos Aires to see how traveling together might go.  Over a couple of months in Argentina and Uruguay, as you can see by the result, it went very well.  Although she has returned temporarily to Europe to fulfill a modeling contract, the return visit to South America in the near future will be a permanent move.  Another former US citizen in South America leading a better life outside the curtain.

That’s just an aside, though, if such a change in one’s life could be referred to so lightly.  There are a couple of reasons why I haven’t written for a while, and therefore needed some prodding.  First, it seems that quite a few North Americans had time during the holidays to finally do what they knew was right all along, and move at least a portion of their assets to safety.  No Europeans recently, for some reason, although they have every bit as much to gain by doing so.

In fact, what I’m hearing from up there sounds progressively more like real fear.  I haven’t stepped foot behind the curtain since before 9/11, and didn’t really need any reassurance that I’d made the right call on that one.  I’m just continually amazed at how far people can get pushed before they’ve had enough.  Seems like more and more have gotten to that tipping point.  Therefore, I’ve been spending much more time establishing new trusts, LLC’s, IBC’s, and bank or brokerage accounts than ever before.  I do all of that personally, by the way.  That in addition to all of the conversations and correspondence it takes to get these new clients on board, and start moving with the due diligence requirements, etc.  

In addition, and as I alluded to above, I’m on a two-year tour of South America by motorcycle, and writing a book.  I had fallen behind on that project, and have been playing catch up.  The trip was borne out of a long-time dream going back to my first trip to Colombia about twenty years ago.  Back when everyone assured me that I’d never get out alive.  Instead, what I discovered was a country and culture that would obviously become a place of choice for many to emigrate to.  I was simply amazed at how inaccurately my new home country had been portrayed.  Back then I was still a suit-wearing corporate geek, but it started a lot of wheels to turning. The seeds of the PT Lifestyle were sown.

When I started out on this motorcycle journey, it was strictly for pleasure, and a way to try out the true perpetual traveller (PT) lifestyle.  Just for fun, I published three or four blogs about my first three to four legs of the journey, on a far less significant website.  To my surprise, the response was incredibly loud and positive.  Therefore, the concept of the Gringo Motorcycle Diaries, as a full-fledged book, was born.  The title being inspired by a book I became aware of many years ago down here written by Che Guevara.

When I set out, I truly thought the journey would take 5-6 months.  Now, 16 months later, and a little over half way, I realize that was wholly unrealistic.  Happily so, as it turns out.  It has been a life-changer, which isn’t any surprise to me.  I fully expected that based on past life-changing experiences. 

My parents, and grandparents, were typical middle class Americans of their times.  They worked, slept, ate, and raised their kids.  They took a family vacation every summer with the measly two weeks allotted to them, and never had passports.  Why would they?  With two weeks a year off work, international travel was pretty much out of the question.  Back then we could cross into Canada without all the paranoid machinations.  I’m not sure if that’s still possible or not.
I’m making that all up for them, after starting out on the same miserable trail.  I was in the same rut in my twenties.  Graduated from college, got married, had student loans and credit card tabs from putting myself through school, mortgage, two car payments, etc etc.  

Luckily, what seemed at the time to be a very unpleasant sort of business with the government, got me my first international post in Saudi Arabia.  So at age 33, I had that first passport, and would never look back.  First thing I learned was how wonderful it was to not pay income taxes, as taxes are forbidden by the Koran it seems.  I was still paying the FICA with the US companies, but no income taxes in Saudi Arabia. 

Also, I was given 8 weeks of paid leave per year, and airfare.  For the first time in my life, I was actually getting ahead, while seeing the world at the same time.  Trips to Egypt for a Nile Cruise, Hungary and Malaysia for the F1 Races, a several weeks tour of Europe by train, four weeks in Australia, Christmas at the coffee farm in Colombia, etc etc. 

I also once had to leave Saudi Arabia in order to get my work visa, so was paid to spend about twelve weeks meandering around Thailand back in 2002.  Let me assure you, that if you’ve ever been stuck in that rut my grandparents, parents, and the younger Paul were in, that a few months of paid vacation in a free country like Thailand, after a life-time of slavery behind the curtain, it will change your life, and whole manner of thinking about it.

Therefore, I was fully expecting this journey to be yet another life-changer.  Why? Because after all of those earlier travels, and several more years spent in South America, I had become convinced that South America is the place to live.  I also know that there are double-digit millions of people in both North America and the EU who have a similar gut feeling.  Many of those, however, are absolutely clueless about how big and diverse this continent is, and therefore the whole Latin American culture which also includes Central America and parts of the Caribbean.  

CULTURAL IGNORANCE

A couple of quick stories on that point.  When I made that first visit to Colombia back in 1996, I had been living in Florida for many years.  Sometimes while driving around the back roads of north-central Florida I would stumble across migrant Mexican farm-workers making homemade tortillas, and rolling up some sort of homemade food, and selling it for a buck. 

I noticed how different it was from Chi Chi’s or Taco Bell.  I was therefore looking forward to getting down to Colombia to see what the Chimichangas were like down there.  When I inquired, they crinkled their foreheads, and got in a huddle to ask about Mexican restaurants.  Back in those days, Medellín didn’t have any, so I was out of luck.  I could have sancocho, chicharrón, papa criollo or even a tamale, but chimichangas?  Medellín has changed a bit over the past twenty years, though, and Mexican grub is also now available….

Then recently, an American who I respect completely as an intelligent guy, and like-minded freedom fighter, said that he had spent some time in Tijuana, and that was enough of Latin America for him…..Wow.  Therefore I know there’s a need to shed a lot of light here for those who know it’s time to leave, but don’t yet know where to go. 

From 2004-2011 I rode around Colombia on a small, very non-descript bike making 1 or 2 week trips here and there.  Back in 2004 many Colombians were still afraid to travel from Medellín up to the coast, but I considered that fear to be unjustified, and went on my merry way.  Meeting some great people along the way, who seemed to truly appreciate my courage, or lack of sense, as their perspective may have been.  What I learned was that even within the country of Colombia, the cultural differences were quite immense, and that I couldn’t begin to imagine what all of those differences would be like throughout the entire continent.

I sometimes wonder if shouldn’t have been a cultural anthropologist instead of an accountant.  Many of the personality tests indicate that I’m cut out more to be an analytical scientist, and I truly love traveling around and observing, comparing and contrasting cultural differences.  I can’t begin to tell you the differences I’ve noted throughout Colombia, Ecuador, Perú, Chile, Argentina, Uruguay and now Brazil. 

Mind-blowing, and with Paraguy and Bolivia still yet to come.  I won’t be telling you about my personal opinions, nor presenting dry charts with cost of living data in them.  Instead, I’m just laying out my real-life experiences, and observations so that the reader can put themselves in that same situation, and judge for themselves whether it’s a good, or bad thing.  Those experiences cover the gamut regarding the people & culture, the governments, the police, weather, prices, everything.

THE PT LIFE IS INCOME TAX FREE

I get a lot of inquiries about how to legally live tax-free.  First of all, I’d like to point out that the majority of people have been expertly brainwashed into thinking that income taxes are the only taxes which matter.  Personally, I’m paying a shed-load of taxes, but thankfully no income taxes.  The biggest tax I pay as a PT is the IVA (VAT or sales tax).  That has ranged from 12% to 22% during my ride-about.  Also whenever I buy gas, which has ranged from USD 1.50/gallon to $7.15, I know there’s a lot of tax in there. 

Whenever I rent a cabin or apartment, I’m paying the owner’s real estate taxes, and taxes on the utilities and wifi etc.  Although some countries don’t charge motorcycles a highway toll, others do, and that’s certainly a tax.  Some countries will have additional “sin taxes” on the beer and wine.   Others prefer to make such items cheap, and keep the populace stupefied.   Let’s not forget obligatory contributions to the bankrupt social security scheme. 

I realized 20 years ago that I’d never see a dime of that.  But then, I also foresaw the current Ameriken police state back then. It just took even more guts to talk about it then. I guess now there’s an obligatory tax to cover your “free” healthcare?  If you don’t pay it you lose your house? Unbelievable.  Yeah, that sounds like freedom.  Trust me, that’s not gonna be happening down here.  The people have too many stones for that.

Even worse is that all along the supply-chain, governmental fees are being added to the prices you pay before the IVA gets added on top.  In Colombia, there’s a tax of .4% on every bank transaction if you use a Colombian bank.  Don’t get me started on Argentina.  Those people really need our services just as bad as the Yankees.  Then there are tangible and intangibles taxes.  You get the point.  

Therefore, not paying income taxes is a minor victory, at best, but if you only spend three months or so at a time in any given country, on a tourist visa, you’re not a resident, and owe no taxes.  If you wanted to, you could make a day trip to a bordering country when your tourist visa expires, and cross the borders again, and renew your tourist visa.  There’s a whole industry in Thailand for people who regularly do that.  They’re called border runs.  Some countries will even give tourists relief on the IVA, too.  When I was paying with my international credit card (issued by a private jurisdiction bank) in Uruguay, I was sometimes automatically refunded a large percentage of their 22% IVA.

Not paying taxes in countries where you don’t live just makes basic common sense.  Something which long ago went by the wayside in tax-and-spend nations.  Taxes are not the right of governments, and their functionaries.  They are payments made by citizens, and hopefully permanent residents, for services provided.  That’s the huge, and valid objection to the USG stance that people not living in the US must still pay income tax. For what, I ask?  So that the MIC can fund its scheme of global imperialism, which they call “defense”.  Thereby endangering the lives of US citizens who are smart enough to leave, by creating great animosity towards them?  Or maybe to fund my own surveillance, again in the name of national security?  Please sign me up for that immediately.

GETTING STARTED

As you can see, none of my current lifestyle happened over night, nor is it for the majority.  The worn out expression about good things taking time, is almost always true.  First I liquidated everything, and got my money to a safe jurisdiction.  Then I obtained citizenship in a free country.  Basically any one, other than the US, EU or Canada, and Australia.  That took several years, and postponed this trip, by the way.  Now I feel like I’m reaping some reward, although living in, and riding around Colombia for a few years wasn’t exactly a big sacrifice,   I have less material possessions, that’s for sure.  Much less, in fact.  How much is your personal freedom worth?  I find the lack of material goods to be extremely liberating in itself.

Where will we end up?  That’s uncertain.  We both know we do want a home base.  Possibly three.  There goes the lack of material goods, but when in safe jurisdictions, one feels less stress about having, and therefore keeping them.  Maybe one on the coast, or an island, one in the mountains, and one on the outskirts of a nice city.  All three in separate South American countries. 

We’re far from rich, but that’s doable down here.  None of them would be lavish.  Just cozy, and perfectly located.  The sale of just one McMansion would easily buy and furnish all three of the places I’m thinking of.  Possibly with a bit leftover as a cushion.  You’ll want that cushion too.  It might take years to find a decent income stream, and don’t ask me what that’ll be. 

Probably something you never thought of before.  Easiest option is buying, and renting out local real estate.

Contact me at [email protected] to take step number one, and Chris Martin at TDV passports to take step number two.  Based on what I’m hearing, your USD may drop to a level whereby you won’t be able to afford to leave.  Suddenly the sale of your McMansion will get you much less house denominated in a stronger currency, like the Colombian peso, or Brazilian real.  Maybe that’s the plan?  You need to be diversified, and in a jurisdiction which still respects due process of law.

If you’d like to start on web-based business, we can do help with that as well.  We can:

    •    Establish the company in a tax-free jurisdiction
    •    Design, construct, and host the website itself
    •    Set up a company bank account in a privacy and due process respecting jurisdiction, and
    •    Establish a merchant account so you can accept credit card payments for your goods and services via the website.  Including the website chopping cart/buy buttons,
    •    Link the merchant account to your private bank account

“When fascism comes to America, it’ll come wrapped in the flag, and carrying the bible” – Sinclair Lewis         

On that note, god bless Amerika.

[Editor's Note: For more information on PT, contact TDV Offshore today]

Questions or comments? Join us at TDV.

Paul worked for several years with Big 4 CPA firms in both the US and Saudi Arabia, and then spent many years as a multi-national corporate Controller and CFO in places like Florida, Riyadh, Abu Dhabi, Cairo, and Medellín. In his second, more free life, he has found a natural home in the offshore industry following almost 2 decades as a permanent expat from the former America. Contact him to learn more about the realities of economical offshore asset protection [email protected]