Buying and Owning an American Yachts

[KeelsonGraham]

Hi all,

I’m thinking of buying an American yacht in the US and then cruising her around the Caribbean for a few years. Has anyone done something similar? Are there any legal/taxation/insurance issues that I need to be aware of?

 

[Stingo]

I'm under the impression that to own an American registered/flagged boat you have to be an American. Delware state is the exception (or was) to the rule.

 

[KeelsonGraham]

Oh. You’re absolutely right. Looks like I’ll have to think about the BVIs or similar.

 

[Stingo]

What Nationality are you?

 

[Laser310]

I'm under the impression that to own an American registered/flagged boat you have to be an American. Delware state is the exception (or was) to the rule.

I think that requirement is for the boat to become documented, which is a sort of federal level registration.

It is possible for non-US citizens to register yachts at the state level - most US yachts are only registered in the state that they mostly operate in, and are not documented.

in general, one does not need to be a resident of a state to register a yacht in that state.

i believe it is fine for a yacht that is only state registered, and not documented, to cruise the caribbean.

anyway - it might be worth looking into this

 

[srm]

Don't know the legal details but a Russian couple owned and were living on a USA flagged yacht in the Azores for a few years. Apparently, their Russian passports and boat's USA registry caused a bit of confusion when they first entered. They sold it after a couple of years and then turned up on another US flagged yacht the following year. This boat was eventually transferred to Portuguese registry as they were running a skippered charter business.

 

[KeelsonGraham]

I’m British, so keeping the boat on the US register isn’t an option. The requirements for the BVI look reasonably simple and painless.

 

[Stingo]

I’m British, so keeping the boat on the US register isn’t an option. The requirements for the BVI look reasonably simple and painless.

I don't recall the BVI registry details, but vaguely remember something similar, with the only hurdle being something to do with chartering vs private use.

Please post the details if you know them. Ta.

 

[BobnLesley]

Why can't you just buy your US yacht and register it as s British/wherever you hail from? Register it under SSR or part 1 and sail to the Caribbean, no vat liability until you sail home and the US Authorities won't stop you leaving

 

[Motor_Sailor]

If you've got a UK address you can use, then just buy the boat, register it on the UK SSR (Part 3) and go sailing.

 

[Tranona]

I’m British, so keeping the boat on the US register isn’t an option. The requirements for the BVI look reasonably simple and painless.

UK registration is the easiest route. Although not what it is intended for (it is only formally for UK based boats), if you are resident in the UK you can use Part 3 which is internationally acceptable, otherwise you can put it on Part 1 which is also a register of title if you have satisfactory title, a representative who is UK based and get the inspection/survey to satisfy the registry the boat exists a you claim.

In practical terms you will not be able to bring it into the UK unless you become resident elsewhere as not only will VAT be payable but it will need to meet current UK standards - which it won't.

 

[Bajansailor]

There is a very motley collection of boats (of all shapes, sizes and prices) for sale on the BVI Yacht Sales website -
Sailboats for sale in the Caribbean - BVI Yacht Sales

It might be easier to buy a boat there?
A pal of mine bought a boat from them 15 years ago, and they were very helpful then.

 

[KeelsonGraham]

Why can't you just buy your US yacht and register it as s British/wherever you hail from? Register it under SSR or part 1 and sail to the Caribbean, no vat liability until you sail home and the US Authorities won't stop you leaving

Thanks to all who suggested this. It does seem to be a good option, but wouldn’t the boat have to be coded for UK standards to get on the UK register?

Buying in the US seems to be cheaper and simpler than in the islands. I especially want to buy a Catalina.

 

[Tranona]

No. there are no regulatory requirements for a British registered pleasure craft under 13.7m and then the only thing is compulsory flares - not that anybody checks. Take your rose coloured spectacles off when looking at buying cheap old boats in the US or Caribbean, They are cheap for a reason - first many production boats are poorly built and second maintenance is not a strong suit, connected with the poor quality and low market values. Add to that Southern US climate exacts a heavy toll on materials. The well known saying "cruising is mending boats in nice warm places" has a strong foundation in reality.

 

[KevinV]

A friend did just this 20 years ago - bought in Florida, cruised the Caribbean, then we sailed it to the UK via the Azores.
No idea how RCD would work on that now though - back then we just paid the vat and ignored the rest. The boat sold for a tidy profit, without issue.

 

[KeelsonGraham]

Who said anything about cheap? I’m thinking of a 23 model 445. It most certainly will be cheaper in the US than in the islands - but not cheap.

Plus, I'm tired of mending my boat on the cold, windy hard in Plymouth. I’d much rather be mending another one somewhere warm and sunny.

 

[KevinV]

Who said anything about cheap? I’m thinking of a 23 model 445. It most certainly will be cheaper in the US than in the islands - but not cheap.

FWIW, we were UK flagged

 

[KeelsonGraham]

Thank you Kevin.

 

[Tranona]

Who said anything about cheap? I’m thinking of a 23 model 445. It most certainly will be cheaper in the US than in the islands - but not cheap.

Plus, I'm tired of mending my boat on the cold, windy hard in Plymouth. I’d much rather be mending another one somewhere warm and sunny.

OK. Sorry I jumped to conclusions, perhaps in my defence because that is what most people who come on here plan to do as they are seduced by low prices in the US and maybe watched too many youtubes!.

Buying that sort of boat puts things in a different light. The advice on British Part 1 is still the best. The cost is insignificant in terms of the overall budget and you will have the security of your title to the boat registered which may, if you need to, allow easier access to finance and down the line make it easier to sell the boat with clear title. The "survey" does not cover the fabric of the boat in the way that a pre purchase condition survey, but measures the boat under an old fashioned system which used to be used for calculating light dues. While this still applies to commercial ships it does not to pleasure yachts. The surveyor also confirms the identity of the boat and that it exists. What some people do is engage the same designated surveyor to do the condition survey at the same time as the registration one but that may not be possible. The registry will provide aa list of their surveyors which will include some in the US.

The issue about importing into the UK or EU stays the same. AFAIK no US production boats are built to UK/European standards simply because it is not economic as they are not sold here. Some used to be including Catalina, but the penal import duties that followed the spat between Trump and the EU over subsidies to Boeing killed the already limited market. However if you stick to outside the EU/UK buying a US boat makes a lot of sense.

 

[Koeketiene]

No. there are no regulatory requirements for a British registered pleasure craft under 13.7m and then the only thing is compulsory flares - not that anybody checks. Take your rose coloured spectacles off when looking at buying cheap old boats in the US or Caribbean, They are cheap for a reason - first many production boats are poorly built and second maintenance is not a strong suit, connected with the poor quality and low market values. Add to that Southern US climate exacts a heavy toll on materials. The well known saying "cruising is mending boats in nice warm places" has a strong foundation in reality.

Never, ever did I expect to hear these words from you.