Freedom Ship International, Inc. (FSI ) plans to offer the opportunity for an unprecedented lifestyle by constructing a sea-based, mobile, full-spectrum residential, commercial, and resort community on a mammoth, mobile, sea platform. The community will travel the entire globe over a two-year cycle, never leaving international waters. It will spend only 30% of its time in transit and the other 70% standing offshore points of interest. A fleet of aircraft and watercraft will ferry people from ship-to-shore, around-the-clock, residents for touring and business, and as many as 30,000 onshore guests and visitors daily.

Approximately 18,000 resident-owned living units, covering a broad price range, and 3000 private-enterprise commercial units, including 1000 residential/commercial combination units, will offer buyers a wide variety of living options. They will enjoy over 200 acres of open-air space, most of which will be landscaped parks, with half for resident use only. The community will levy no taxes of any kind. Property owners will pay a single competitive monthly maintenance fee.

The community will offer all the amenities of a modern city, including a large-scale, state-of-the-art hospital, a kindergarten-through-college school system, and an international library. It will also feature resort amenities such as casinos, conferences centers, and an array of athletic and recreational facilities, restaurants, and entertainment sites. Retailing and world trade will predominate the commercial sector, creating the world’s largest duty-free mall, but there will be light manufacturing and assembly operations as well. A small number of major enterprises such as hotels, casinos, and banks, will operate under license from FSI. In addition, hundreds of residents will run personal-service businesses in areas such as health care, media, education, fitness, touring, counseling, consulting, and arts and crafts instruction.

The World’s Biggest Ship—The World’s Newest Tax Haven? Analysis by Mark Nestmann

Nearly a mile long and 25 stories high, the world’s largest ship—Freedom— will soon be taking shape.

Freedom will eventually be home to 50,000 residents, 4,000 businesses and 15,000 employees. Many residents will own their personal condominium, ranging in price from $185,000 for a 750-sq. ft. unit to $6 million for a 5,100-sq.ft.oceanside penthouse.³Time-share rentals will also be available.

Equipped with state-of-the-art communications technology and a 4,000-foot jet runway, Freedom may become a floating tax haven for many of its residents. Freedom will impose only a monthly fee for services depending on the size of the unit purchased. It will impose nor enforce any other taxes or fees.

Designer Norm Nixon envisions the Freedom to continuously circle the globe in a route to keep its residents in perpetual sunshine. Anticipated ports of call include stops on every continent. Many duty-free shops will operate to attract local tourists. Other residents will operate businesses at sea. Nixon believes that the size and affluence of the resident population will be sufficient to support its own local economy.

As a sea-going vessel, Freedom will fly the flag of a specific country (to be determined) and be subject to the laws and regulations of that country as well as international maritime law. So Freedom won’t become be a "sovereign" tax haven. However, a number of residents plan to offer offshore services.

Freedom is only the largest floating tax haven planned. Another (much smaller) ship, The World, also has cabins for sale. Construction of The World begins this month in Germany.⁴

Floating tax havens are only one option residents of high-tax countries will have in coming years to reduce their tax burden. New offshore financial centers will develop as well, as jurisdictions from Montana⁵ to former Soviet republics set up shop.

Most countries do not consider persons working abroad "non-resident" for tax purposes unless they can show residence in a foreign country. Persons working on Freedom, unfortunately, are not likely to qualify. Nor are US persons (who are taxed on worldwide income wherever they live) who wish to claim the annual $72,000 "foreign earned income exclusion."⁶According to tax attorney Lawrence D.W. Graves, US oil-riggers, pilots and others that lack a "foreign tax home," "have met with absolute failure in claiming the exclusion for foreign-based employment."⁷
 

For more information on Freedom Ship, visit www.freedomship.com.- 1. United States v. Hendler, 952 F2d 1364 (Fed Cir 1991). 2. "City at Sea," Popular Mechanics, Feb. 1998, p. 69. 3. Freedom Opportunities, LLC, 10999 Metcalf Ave. #200, Overland Park, KS 66210; phone: (800) 966-7229; fax: (913) 338-1703; http://www.freedomship.com. 4. Doyle, "Cruise Liner Seeks Super-Rich Stay-at-Homes," Reuters, Dec. 29, 1997. 5. "Rocky Montana High," Forbes, Nov. 3, 1997. 6. 26 USC 911. http://www.law.cornell.edu/uscode/26/911.shtml. 7. Lawrence D.W. Graves, c/o Fierst & Pucci, 64 Gothic Street, Northampton, MA 01060; phone: (413) 584-8067; fax: (413) 585-0787; e-mail: Graves@Ent-Atty.com.