British registered Boat in Turkey

[satsuma]

Hi, I live in Turkey and am just in the process of possibly buying a British Boat that is in Greece but has previously been in Turkey. From what I understand a Foreign registered boat can stay in Turkey for 5 years before having to be imported and registered here, my question is this .... How do they measure this time? How can I find out how much of the 5 years has been used up or does it restart because the boat has been out of Turkey and will have new owner?
THanks in advance for any advice.

From your original question, I think! I got lost along the way! When taking a foriegn flagged vessel to turkey, youwill need a transit log, issued and controlled by the turkish authorities. These are valid for 12 months, renewable for a consecutive stay of 5 years. (this is how theymeasure the time). Periodically the turkish government offer an "amnesty" and allow foriegn flagged boats to flag in turkey, rumours suggest this year it may happen again!
Otherwise you should take your boat out of turkey for 1 day, re-enter and restart another 5 years. Mostly if you know the coastguard or a good agent, you can do this without even leaving the marina, I've done it in marmaris and fethiye!
Otherwise, my recollection is that you are not allowed to import a second hand boat into turkey! Though that may have changed!
Regards

 

[Resolution]

Tranona: I'm not sure he's asking about the (EU) VAT situation. He lives in Turkey. His hope, I suspect, is to move it there without incurring onerous Turkish requirements - the reason you see so may Delaware-registered boats in that part of the world.

macd
I currently keep Resolution in Turkey at Port Iasos. Out of curiosity only, just what are the Turkish regulations that lead to so many Delaware registered boats? And why Delaware and not IoM etc?
Peter

 

[macd]

macd
I currently keep Resolution in Turkey at Port Iasos. Out of curiosity only, just what are the Turkish regulations that lead to so many Delaware registered boats? And why Delaware and not IoM etc?

I don't specifically know the answer to the first part, but assume it's to do with taxes of one sort or another.

Delaware because it's a very cheap and easy place to register a company: in fact it hosts more companies, both huge and tiny, than people. Whenever governments get stroppy towards tax havens such as the IoM*, the spectre of Delaware is usually raised in response. (Luxembourg, too, for its generous hosting of Amazon etc.)

Registering a boat on the Isle of Man equivalent of Part 1 is comparably onerous and expensive to the UK, so although it is sometimes used (along with an IoM company registration), it's nothing like as widespread as Delaware for maintream leisure craft. (This is not to be confused with the IoM's local leisure boat registry, which is cheap, but also compulsory, unlike SSR.)

* Which is nothing like the tax haven it was, since it now shares tax information as freely as does the UK.

See: http://www.nytimes.com/2012/07/01/business/how-delaware-thrives-as-a-corporate-tax-haven.html?_r=0

 

[satsuma]

I don't specifically know the answer to the first part, but assume it's to do with taxes of one sort or another.

Delaware because it's a very cheap and easy place to register a company: in fact it hosts more companies, both huge and tiny, than people. Whenever governments get stroppy towards tax havens such as the IoM*, the spectre of Delaware is usually raised in response. (Luxembourg, too, for its generous hosting of Amazon etc.)

Registering a boat on the Isle of Man equivalent of Part 1 is comparably onerous and expensive to the UK, so although it is sometimes used (along with an IoM company registration), it's nothing like as widespread as Delaware for maintream leisure craft. (This is not to be confused with the IoM's local leisure boat registry, which is cheap, but also compulsory, unlike SSR.)

* Which is nothing like the tax haven it was, since it now shares tax information as freely as does the UK.

See: http://www.nytimes.com/2012/07/01/business/how-delaware-thrives-as-a-corporate-tax-haven.html?_r=0

Turkish citizens are not allowed to own foreign flagged vessels! Neither can they import second hand ones and register them in turkey!
They should buy new, wich on a super. Luxury item like a boat would put taxes around the 200-240 percent mark!
They can own foreign companies of course, which delaware ease the way to set up!

 

[macd]

Turkish citizens are not allowed to own foreign flagged vessels! Neither can they import second hand ones and register them in turkey!
They should buy new, wich on a super. Luxury item like a boat would put taxes around the 200-240 percent mark!
They can own foreign companies of course, which delaware ease the way to set up!

That seems to nail it. Thanks.

 

[maxy]

Hi

Not quite right. A foreign flag (non Turkish) can stay in Turkey for 5 years. A new transit log is required each year. At the end of 5 years the yacht must leave but can immediately return (say next day). The clock starts ticking from the first date shown on the initial transit log when you first arrived in Turkey. This is a most important transit log because if say you choose to check out after three years but dont have the initial transit log then they dont know when you arrived (they do, it's on the computer, but they wont tell you that) and you have to pay a substantial fine.

We know of two yachts who have fallen foul of this. The fine was around 5% of the value of the yacht. thye value is decided by a local Turkish surveyor who charges 1000TL (around £250) in addition.

The clock restarts every time you enter Turkey from another country.

Kevin

 

[maxy]

True but not strictly accurate.

Correct Turks cannot own, buy or import second hand yacht, they can only buy new. However many Turks buy second hand yachts through an American corporation and flag USA. This is why you will see so many Delaware registered yachts here, they are in truth Turkish owned.

Several years ago Turkey offered these owners an amnesty to re flag as Turkish, and it had a very limited uptake. The reason one owner gave was that Turkey had a reputation for retrospective taxation. The discount given as part of the amnesty could be recovered at a later stage. Second that he would have to disclose where the money came from and as there is a large black economy here, he couldn't declare it.

I heard this week that 'Delaware' were withdrawing this scheme, but I can't confirm this currently.

Kevin

 

[satsuma]

Turkey have declared another amnesty for foreign flagged boats (owned by Turks) to register under a Turkish flag. The offer is valid until December this year.
Many of them won't take it up because Turkish flag yachts are Taxed yearly, it will likely still be cheaper to pay for a transit log.

 

[Norman_E]

Turkey have declared another amnesty for foreign flagged boats (owned by Turks) to register under a Turkish flag. The offer is valid until December this year.
Many of them won't take it up because Turkish flag yachts are Taxed yearly, it will likely still be cheaper to pay for a transit log.

As I understand it there are heavy taxes on purchase and a heavy annual tax based on engine horsepower.