Boat Registry????

[PBarve]

I am European. My wife is American. We live in the US. We are buying a boat in Europe. VAT has not been paid. What is the smartest and most economical choice when it comes to registering the boat? St Vincent? BVI? Marshall Island? US Coastguard, and take her into an american state? Or other options?
Please, if anyone has any suggestions it would be much appreciated.

 

[Shakey]

What's an European?

Do you mean French, German, Belgian, Danish, Spanish, Dutch, Portuguese, Polish etc. etc. etc.

Rules might vary from country to country. This isn't the US of E yet.

Glad to see you're intent on avoiding VAT. Unfortunately I have to pay it every day on every minor purchase I make.

"Help would be most appreciated." you say. I'm sure it would.

However if you're going to ask for serious financial advice on a British website then you might want to consider using the word 'please' somewhere in your bombastic demand for information.

 

[PBarve]

Shakey,

Sorry for offending you I only intended to ask fellow sailors for a few tips.

I would love some information if anybody knows anything, please.

 

[Shakey]

I'm sure there's many out there who can give you a few tips. have you tried posting your questions on Liveaboard Link?

No hard feelings.

 

[PBarve]

Shakey,

Thank you!

 

[Woodentop]

Avoid the US flag

Probably a touch out of date but this some of what I learnt on my travels;

If the boat is registered in a US state you may have to pay annual property taxes on it. Delaware used to have a zero rate so it was a very popular stste for registration.

The alternative is Federal Registration, which carries no annual tax burden, but the Governemnt can requisition the boat in wartime. (usually only applies to large merchant ships.)

If the boat is US flagged then the US Coastguard can board and make damn nuisance of themselves anywhere in the world.

On to EU national flags,

Enormous differences from country to country.
VAT first.
Once the boat has been in Europe for 6 months VAT must be paid (Am I out of date on that one ? - more informed please confirm). Of course one can enter and leave regularly.

Also - If the boat is Euro country flagged - who is going to ask about the VAT status ?


Watch out for national regs. If the boat is Spanish or German or French flagged, for example, then you must have a Spanish, French or German "driving licence" - skipper´s qualification.
Like wise radio licence user and installation regs apply.

Since you speak English (and will thus be able to read the rules) If you can find an address in the UK then Part 3 registration (Small Ships Registyration) would probably be simplest.

Note also a potential tax burden on importing (or registering) the boat into the US, as well as the annual property tax.

 

[Guest]

I would suggest the RYA as the best source of factual data.

If you intend to spend a lot of time in Europe, would be worth jioning as a member for the modest annua fee.

I noticed you did say "please"

 

[Lizzie_B]

The rule in Britain is that registry of a vessel is about your principle place of residence and not just nationality (rules available from MCA website), as it is in most american states. I would suspect similar in most european states although not 100% sure on that one. Also re VAT avoidance- some EU states require to see proof of VAT status before they will register, though not UK.There are different rules if your boat is going to be made available for charter, as then it becomes a 'business' based in the country where the boat is under some EU states laws and they will insist it is registered in their state. I think most likely, that as you say you will be living in USA you will either have to CoastGuard document your boat or register with your normal state of residence. I know that some states in the USA will still insist that you register your boat with them even if you are coastguard documented. Information can be obtained from US Coast Guard web site. If you're buying a new boat from manufacturer it would probably be cheaper and less hassle to buy it from a US registered dealer if you are going to be principally resident in the US. I also noticed you said please in your original post! People should perhaps learn to read accurately before dispensing pompous advice on manners. Presumably such an expert on manners will be keen to demonstrate the correct way to apologise for their error soon.

 

[Stingo]

Re: Avoid the US flag

[ QUOTE ]
Enormous differences from country to country.
VAT first.
Once the boat has been in Europe for 6 months VAT must be paid (Am I out of date on that one ? - more informed please confirm). Of course one can enter and leave regularly.

[/ QUOTE ]
The cheapest rate that I know of is Maderia (12% if I recall) and they need the money so are negotiable on the value of the boat.
Make that 18 months before you have to pay VAT.

 

[jamesjermain]

I really don't think you have any option but to register in America about which I know nothing. You certainly can't register in the UK because you need a British address. I think the same applies in all other EU states. Also, bringing a Euro-registered boat into the USA permanently probably has as many problems as vice versa.
If you register in the USA you can still keep the boat in EU waters for 18 months continuously without paying VAT or getting the boat RCD certificated. You then only need to sail to a non-EU port for a short while and you reactivate the 18 month exemption.

 

[alant]

Re: Avoid the US flag

Thought Red Duster status was open to all UK Nationals resident in UK and 'foreign' companies registered in UK or a British 'Territory'.
Try these guys - BVI Registration specialists -http://www.harneys.com/admiralty_and_shipping.php
Also,
<However if you're going to ask for serious financial advice on a British website then you might want to consider using the word 'please' somewhere in your bombastic demand for information>
Shakey, he did ask politely
<Please, if anyone has any suggestions it would be much appreciated.>
Xenophobic or what?

 

[walker]

Welcome to the site Enseglare. Afraid I can't help with your enquiry but I would like to apologise on behalf of all right thinking Englishmen (i.e. Londoners) for the appalling rudeness of Shakey. I can assure you that England (i.e. London) is generally a welcoming and civilised place, but we do have a bit of trouble with the provincials, who's siege mentality extends to this site. They are simple creatures who believe that because your message appears on a computer screen in their own sitting room or office that you are actually there; hence the reaction when you don't knock on the door. /forums/images/graemlins/wink.gif

 

[jfm]

This is tricky because you dont say what country you are resident/citizen of and also where you want to keep the boat. Also size/type of boat is relevant

I would think best answer is register the boat in your wife's name and US flag it, assuming you can register in a low tax state like Delaware.

Then you can bring it into EU for 18mths without VAT under temporary import rules. But note, this temporary import is only open to boats owned by non EU residents, hence my suggestion to make your wife the owner

You will have a separate issue on how to buy the boat in the first place without paying VAT to the seller. Depends where the seller and boat are, and if new or 2nd hand. Will be easy in france if buying 2nd hand, say. In UK you will have to tell seller you are leaving the EU, and frexample sail it to Jersey.

We really need loads more detail from you then can answer properly. It is all possible - I am a UK resident/citizen and our boat (bought new) is in France and not VAT paid.

 

[bob_tyler]

Shakey - the very first word of the final paragraph is "please".

Please read thoroughly before you moan.

 

[jhr]

Bob,

I think he edited his post, and added a please, in response to Shakey's comment.

Still a rather intemperate reply, perhaps, but if I were awake at 1.30 in the morning, I'd be grumpy, too! /forums/images/graemlins/smile.gif

 

[PBarve]

To all /forums/images/graemlins/smile.gif Poster's.
Thank very much for your comments. And, yes I did edit my post and put in please after Shakey made me realize how it came across.
All the best to all you sailer's.
Petter

 

[Danny_Labrador]

[ QUOTE ]
I am a UK resident/citizen and our boat (bought new) is in France and not VAT paid.

[/ QUOTE ]

Fascinating, will you tell how ? private e-mail if necessary

 

[Swagman]

Clearly you'll take 'professional' advice but we met UK cruisers last year who purchased a Swedish built yacht, and they chose to have it registered it in Malta where I understood, VAT is charged at around 11%.
They continued to fly the British Ensign and in a months close sailing company this hardly seemed an issue with various country officials.
Good luck with sorting your issues - and I'll add my apologies to the rudeness shown by the first respondant.