Buying a boat in turkey

[rigpigpaul]

Hi all,
I am going to view a boat next week in Turkey. Uk owner and UK flag being sold through a broker in Turkey. If I like the boat then I make an offer pending a satisfactory survey. Question --what is a satisfactory survey. Would I have to stipulate what was not satisfactory. Would I have to hand over any money before the survey. Would the broker source copies of ownership from owner to prove ownership. I am willing to spend a bunch of money buying the boat but a few tips would put my mind at ease. Here's hoping RPP

 

[Norman_E]

When you pay any deposit, specify in writing that the survey must be satisfactory to you. I bought in Turkey, from the boat owner via the German charter company that had managed it. In my case the deal was simple and it was up to me to either accept and pay for the boat or get my deposit back once I had seen the survey. If the boat is in or near Marmaris let me know by PM, I can put you in touch with a trusted surveyor.

 

[Tranona]

The survey is to satisfy you that the boat is as described - in other words, your "expert" is checking it out for you as once you part with your money you have no comeback on the vendor if you subsequently find faults.

Be aware that if the transaction takes place in Turkey, the boat will probably become liable for VAT if you subsequently bring it into the EU, even if you buy it from an EU/British resident. The residency of the owner and the state of registration is irrelevant, it is the nature and location of the transaction that determines tax liability. You may like to consider conducting the transaction in Greece where no VAT is involved, but even then you may have difficulties later if you take it outside tthe EU and then want to bring it back in.

Worth reading HMRC VAT Notice No 8 to understand the rules.

 

[little_roundtop]

Make your offer to buy in front of a witness (the broker should do) and be sure to say that "your offer is subject to survey". On acceptance you will be expected to pay a deposit (usually 10%). Then you need to engage a competent surveyor, and get one who is or who speaks English.

If the survey reveals serious problems with the boat that you could reasonably expect the seller to know about but which were not revealed you should be able to pull out and get your deposit back. Minor defects that it is not reasonable to expect the seller to have known about are avenues for further price negotiation.

The surveyor will be working for you (not the seller) and his/her report will be for you alone. The surveyor will be concerned only with the boat and her gear on the day it is seen, he/she will not follow any ownership paper trails for you. It will be your decision whether to proceed with the purchase, whether to use the survey to negotiate a further price reduction (that's quite common) or whether to pull out.

Don't expect the surveyor to tell you whether you should buy this boat, they won't. The survey will be an accurate report of the condition of the boat on that day, it will be up to you to decide whether that is what you expected and whether you want to pay the agreed price for the boat in that condition.

 

[derk]

I would underline the importance of conducting the transaction within the euro zone as previously mentioned. If the broker is any good he would be advising you that. If you buy in Turkey and then go to Greece (for example) you are effectively importing the veesel into the euro zone and vat will apply. Many boat sellers take the vessel to greece and obtain a valid harbour dues reciept dated the same day as the transaction to prove that the vesel was sold within the euro zone. Depending where the boat is there is usually a greek island within a days sail. There are of course other aspects re booking in and out of the the countries but the broker will advise.

 

[jimbaerselman]

Traps for the unwary!

If the boat is VAT paid, it will lose it's VAT paid status if it changes ownership when it is outside the EU.

If a VAT paid boat remains outside the EU for longer than 3 years, it loses its VAT paid status.

If it's not VAT paid, but owned or sailed by an EU resident, on entering the EU VAT must be paid within a limited number of days, which varies depending on the country.

I haven't checked recently, but Greece used to offer a one or two month cruising permit, while UK only allowed 8 days grace.

 

[rigpigpaul]

Buying a boat in Turkey.

Hi all, thanks for the sound advice. The boat is VAT not paid but I want to keep it in Turkey for at least two years and decide where to enter the EU to pay the VAT on the value then.
rgds RPP