Forbidden Knowledge Inside Information They Don’t Want You to See Editors Robert E. Bauman JD Ted Bauman — Seventh Edition — Forbidden Knowledge Inside Information They Don’t Want You to See Editors Robert E. Bauman JD Ted Bauman — Seventh Edition — Banyan Hill Publishing P.O. Box 8378 Delray Beach, FL 33482 Tel.: 866-584-4096 Email: http://banyanhill.com/contact-us Web: http://banyanhill.com ISBN: 978-0-692-46550-9 Copyright (c) 2016 Sovereign Offshore Services LLC. All international and domestic rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording or by any information storage or retrieval system without the written permission of the publisher, Banyan Hill Publishing. Protected by U.S. copyright laws, 17 U.S.C. 101 et seq., 18 U.S.C. 2319; Violations punishable by up to five year’s imprisonment and/or $250,000 in fines. Notice: this publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold and distributed with the under- standing that the authors, publisher and seller are not engaged in rendering legal, accounting or other professional advice or services. If legal or other expert assistance is required, the services of a competent professional advisor should be sought. The information and recommendations contained in this brochure have been com- piled from sources considered reliable. Employees, officers and directors of Banyan Hill do not receive fees or commissions for any recommendations of services or products in this publication. Investment and other recommendations carry inherent risks. As no investment recommendation can be guaranteed, Banyan Hill takes no responsibility for any loss or inconvenience if one chooses to accept them. Banyan Hill advocates full compliance with applicable tax and financial reporting laws. U.S. law requires income taxes to be paid on all worldwide income wherever a U.S. person (citizen or resident alien) may live or have a residence. Each U.S. person who has a financial interest in, or signature authority over bank, securities, or other financial accounts in a foreign country that exceeds $10,000 in aggregate value, must report that fact on his or her federal income tax return, IRS form 1040. An additional report must be filed by April 15th of each year on an information return (fincen form 114) with the U.S. Treasury. IRS form 8938 also may be due on April 15th annually, depending on the total value of foreign assets. Willful noncompli- ance may result in criminal prosecution. You should consult a qualified attorney or accountant to ensure that you know, understand and comply with these and any other reporting requirements. ABOUT THE EDITORS ROBERT E. BAUMAN JD Bob Bauman, legal counsel to Banyan Hill (previously The Sovereign Society), served as a member of the U.S. House of Representatives from 1973 to 1981 representing the First District of Maryland. He is an author and lecturer on many aspects of wealth protection, offshore residence and second citizenship. A member of the District of Columbia Bar, he received his juris doctor degree from the Law Center of Georgetown University in 1964. He has a B.S. degree in International Relations from the Georgetown University School of Foreign Service (1959) and was honored with GU’s Distinguished Alumni Award. He is the author of The Gentleman from Maryland (Hearst Book Publishing, NY); and the following books, all published by Banyan Hill Publishing: The Passport Book: Complete Guide to Offshore Residency, Dual Citizenship and Second Passports; The Offshore Money Manual; Panama Money Secrets; Where to Stash Your Cash Legally: Offshore Financial Centers of the World, Swiss Money Secrets; How to Lawyer-Proof Your Life. His writings have appeared in The Wall Street Journal, The New York Times, National Review, and other publications. TED BAUMAN Ted Bauman joined Banyan Hill (previously The Sovereign Society) in September 2013 and serves as the editor of The Bauman Letter and the Plan B Club, specializing in asset protection and international migration issues. Born in Washington D.C. and raised on Maryland’s Eastern Shore, Ted emigrated to South Africa as a young man. He graduated from the University of Cape Town with postgraduate degrees in Economics and History. During his 25-year career in South Africa, Ted served a variety of executive roles in the South African non- profit sector, primarily as a fund manager for low-cost housing projects. During the 2000s, he worked as a consultant, researching and writing extensively on financial, housing, and urban planning issues for clients as diverse as the United Nations, the South African government, and European grant-making agencies. He also travelled extensively, largely in Africa, Asia, and Europe. In 2008, Ted returned to the U.S., where he served as Director of International Housing Programs for Habitat for Humanity International, based in Atlanta, GA. During that time, he extended his travels to Latin American and the Caribbean. He continued to research and write on a variety of topics related to international development. In 2013, Ted left Habitat to work full-time as a researcher and writer. Ted has been published in a variety of international journals, including the Journal of Microfinance, Small Enterprise Development, and Environment and Urbanization, as well as the South African press, including the Cape Times, New Internationalist, Cape Argus, and Mail and Guardian. Forbidden Knowledge Inside Information They Don’t Want You to See Editors Robert E. Bauman JD Ted Bauman Seventh Edition TABLE OF CONTENTS Preface .............................................................................................................9 Chapter One: The Sovereign Life & How You Can Achieve It Starting Today ...............................................................................................13 Chapter Two: Your Guide to Second Passports, Dual Nationality, Foreign Residence & Expatriation ..............................................................................57 Chapter Three: Little-Known Secrets of Offshore Banking, Insurance & Finance ...................................................................................................141 Chapter Four: Offshore Trusts, Family Foundations & Other Wealth Preservation Strategies .................................................................................195 Chapter Five: Real Estate .............................................................................245 Chapter Six: Your Finances & Estate Planning ............................................293 Chapter Seven: Your New Goal: Pay Zero Taxes — Legally ..........................365 Chapter Eight: Tax Havens — International Asset Acquisition & Storage .... 435 Chapter Nine: Special Places for Business & Profits .....................................471 Chapter Ten: Personal & Digital Privacy Secrets ..........................................587 Chapter Eleven: Unchain Your Personal and Civil Liberties .........................657 Appendix A: Council of Experts ..................................................................689 Appendix B: About the Authors ..................................................................697 PREFacE “Just as the State has no money of its own, so it has no power of its own. All the power it has society gives it, plus what it confiscates from time to time on one pretext or another; there is no other source from which State power can be drawn. Therefore, every assumption of State power, whether by gift or seizure, leaves society with so much less power; there is never, nor can be, any strengthening of State power without a corresponding and equivalent depletion of social power.” — Albert J. Nock (1935) “Knowledge itself is power.” — Francis Bacon, Meditationes Sacrae (1597) In the age-old struggle for individual liberty against the power of the state, there can be no question which side has triumphed throughout most of the twentieth century. The one interest the state willingly sacrifices to the “common good” is personal liberty “the freedom to produce and create, to buy and sell, to speak and publish, to travel, to live freely.” By diminishing liberty, government systematically subverts people’s respon- sibility for their own lives. It robs those who produce in order to placate those who only consume. The result is economic stagnation, retrogression and political corruption. Since the seventeenth century, in England, France and America, and more recently in Russia and Eastern Europe, revolutions against this tyranny of the state were fought on behalf of an alternative we can call “natural liberty.” At first successful, over time these revolutions cooled to complacency and hard-won freedom came to mean guaranteed entitlement to government largess. True natural liberty means that each of us is the sole legitimate owner of our own life and destiny, free to act as we wish so long as we use no violence, fraud or other aggression against others. That same freedom dictates a free-market economy enjoying peaceful produc- tion and trade. It opposes government control by self-serving politicians. No activity of statist government has diminished personal liberty more than the unchecked power to tax. In the United States, the United Kingdom and Germany the effective rate of personal taxes far exceeds 50 percent of earnings. In some nations, such as France and Sweden, it is higher