Perpetual tourist

After gap years, month-long treks or weekend getaways, eventually we tend to return to the place we call home. However, for a new breed of traveller, the journey never ends.

Meet the ‘Perpetual Traveller’. Coined by W. G. Hill in 1996, the expression stands for somebody who moves from domicile to domicile, staying no longer than a few months in each place and therefore is not considered a legal resident of any one country.

Different from the ‘world citizen’, a more philosophical term for those who feel allegiance to the world as a whole, the perpetual traveller seeks to minimize legal obligations and allegiance to any government. This traveller has a ‘pick and mix’ approach to the legal system of a country, unlike most travellers who tend to take a country’s legal framework as one single package.

Fans of this approach include wealthy individuals, who are mostly in it for tax minimization purposes, ‘extreme’ travellers who would rather be perpetually on the move, and not necessarily return to a fixed ‘home’ after their travels, and people who are disaffected by their government and want to distance themselves from the system.

The philosophical underpinning is often based on libertarian or anarcho-capitalist notions, with a high emphasis on personal freedom. Anybody can decide to do this from young singles and couples through to families, or retirees, provided they arm themselves with the right knowledge. Unlike the regular traveller, accepting the ‘fixed menu’ of any given country, the perpetual traveller goes for the ‘buffet’ version.

There is a theory which states that perpetual travellers should plant up to six ‘flags’ in different countries.

The first flag is to gain a passport and citizenship which allows easy and cheap travel into other countries and does not tax income that is generated abroad. St. Kitts, Singapore and Iceland have become quite popular for this.

The second flag is to attain legal residence in a place with a low or non-existent income tax, such as Dubai or the Cayman Islands.

The third flag is where you incorporate your business. This also should be a place with low, or no, corporate taxes.

The fourth flag is where you store your assets. This place should have a stable currency and low capital gains tax, countries like Switzerland or Lichtenstein.

The fifth flag is your ‘playground’, the place where you spend all your money. It should have low prices and sales taxes. For example, Eastern Europe or South-East Asia.

The sixth flag is where you host your Internet data. This place should ideally have low regulation and little interference by government agencies.

Making optimal use of these ‘flags’ requires an extensive study of legislation and tax codes of different countries, so it is not a lifestyle one can enter on the spur of the moment.

There are also several challenges to consider before taking the plunge. For one, this lifestyle requires either substantial funds, a passive income stream or a de-localized income (i.e. freelance work). Many newcomers make the mistake of trying to let the travelling pay for itself by blogging or writing travel books. This can work for some, but seasoned travellers often recommend using one’s existing skills for income (i.e. craft, trade). Frequent flights may be costly and, once again, one has to plan in advance in order to take advantage of early bird deals. Health insurance is also expensive, it too requires plenty of preparation and figure-juggling. With families, children would need to be home-schooled and some jurisdictions do not permit this. Finally, the transient lifestyle of a perpetual traveller makes it often very difficult to forge meaningful friendships or relationships.

But don’t despair – this lifestyle is not just confined to the super-rich. With preparation and methodical research, people can successfully enter into this way of life. Sometimes it may be possible to travel the world whilst in steady employment, especially if you have a good record of telecommuting. In the spirit of AirBnB, domiciles can be organized by two-way or three-way house swaps. Another idea is to work as a house-sitter, to take care of the house during the owner’s absence in exchange for lodging and possibly a small income. Some countries like Germany issue Freelancer Work Visas, hence Berlin has become a popular domicile for many expat ‘digital nomads’.

The lifestyle of a ‘perpetual traveller’ has its challenges and rewards. Some travellers prefer to retain the ‘spontaneity’ of travel, and consider all the legal legwork a ‘killjoy’ to exploring a country. For others, this lifestyle offers them freedom, spurred by the desire to retain as few connections to a place as possible. It is only for people who understand what they can gain from such a lifestyle and, though it is open for everybody, only a few can truly juggle the requirements and enjoy the process.