Forming/using a Delaware company for boat ownership

Irish Rover

Irish Rover

Well-Known Member
Joined
5 Feb 2017
Messages
8,215
Location
Türkiye
Visit site
I'm in the early stages of looking for a new boat. I'd like to take advantage of savings to be had from buying a VAT not paid boat in the EU. I would probably go for full part 1 registration in the UK or Jersey eventually but this takes time and, as an interim measure, I'm thinking to form a Delaware LLC and use that as the purchase vehicle.
If anyone here has any experience of doing this and can offer any tips or advice I'd be grateful.
 
Think you need to look again at this ....

Over recent years - 'onshore' authorities have implemented penalties / limitations etc. to discourage use of 'offshore' facilities.

One of the most painful is when transferring assets to 'onshore' from 'offshore' ... also if you no longer require the 'offshore' co. - the closing down costs are not cheap.

I will not give details - but I know this from own experience just recently.

My advise ? Bite the bullet and buy VAT paid and/or UK based and be done with it .....

Where will you keep it ? I know Turkey has some lax affairs - but I cannot see you getting away with keeping it there for long ...
 
Refueler said:
Think you need to look again at this ....

Over recent years - 'onshore' authorities have implemented penalties / limitations etc. to discourage use of 'offshore' facilities.

One of the most painful is when transferring assets to 'onshore' from 'offshore' ... also if you no longer require the 'offshore' co. - the closing down costs are not cheap.

I will not give details - but I know this from own experience just recently.

My advise ? Bite the bullet and buy VAT paid and/or UK based and be done with it .....

Where will you keep it ? I know Turkey has some lax affairs - but I cannot see you getting away with keeping it there for long ...
Click to expand...
Thanks for your input. I'm a bit confused by your references to "onshore" and "offshore" in this context. There are quite a few Delaware registered boats in the my marina in Türkiye and every other marina I've visited. I've also seen many in Greece.
 
Irish Rover said:
Thanks for your input. I'm a bit confused by your references to "onshore" and "offshore" in this context. There are quite a few Delaware registered boats in the my marina in Türkiye and every other marina I've visited. I've also seen many in Greece.
Click to expand...

Onshore vs Offshore.

Terms used to denote Tax accountability.

Offshore are not only islands / locations such as Cayman ... Channel Islands .... Isle of Man .... Belize ... etc. - but also designated areas within a country that are not always subject to the surrounding national tax / accountability rules. Delaware in USA is such a location. It may interest some - Delaware is 'reported' to have been as a result of USA wishing to 'create' a City of London style base in USA ... which basically failed. It has survived as a Registration Location.

Onshore is within a full Tax / Accountability location.

Offshore will often incur penalties / lack of banking facilities etc because such as USA wish to clamp down on their use.

I am aware that many boats - particularly larger are registered via Offshore Entities ..... if you are such a weakthy person - then my Hat off to you sir. But for average person ? I am not so sure its a good path if you are aiming later to 'import' to UK or other full tax accountable location.

My honest opinion.
 
Refueler said:
Onshore vs Offshore.

Terms used to denote Tax accountability.

Offshore are not only islands / locations such as Cayman ... Channel Islands .... Isle of Man .... Belize ... etc. - but also designated areas within a country that are not always subject to the surrounding national tax / accountability rules. Delaware in USA is such a location. It may interest some - Delaware is 'reported' to have been as a result of USA wishing to 'create' a City of London style base in USA ... which basically failed. It has survived as a Registration Location.

Onshore is within a full Tax / Accountability location.

Offshore will often incur penalties / lack of banking facilities etc because such as USA wish to clamp down on their use.

I am aware that many boats - particularly larger are registered via Offshore Entities ..... if you are such a weakthy person - then my Hat off to you sir. But for average person ? I am not so sure its a good path if you are aiming later to 'import' to UK or other full tax accountable location.

My honest opinion.
Click to expand...
Thanks again. All very interesting. As I've said there are many boats in Türkiye and elsewhere in Europe with Delaware registration and availing of Temporary Admission and that's what I'm looking at doing as well. It doesn't appear to be too complicated a process so I'm just hoping there may be somebody on the forum who's done it and might have some advice to share.
 
There are many other jurisdictions other than the USA where it might be easier to set up a company at low cost. E.g. Hong Kong.

Silly question. Maybe.
Why not the UK if you are not intending to bring the boat to the UK?

My understanding is that the idea is that the boat is sold while outside the EU and UK to a company so avoiding any VAT liability.
 
@westernman Thanks. I don't know anything about setting up a company in Hong Kong. Delaware is a road well travelled and plenty of information on line. I also know the authorities in Europe and Türkiye are well used to seeing this reg so not too many questions being raised. The immediate issue with UK reg is that Part 1 takes a lot of time with the need for a tonnage survey etc.
 
Refueler said:
I am well aware of that and if you read my first - I state clearly ASSETS .........

Later comment referring to why Delaware came about - was purely as an interest item.
Click to expand...
Truthfully I've no idea what point you're trying to make in the context of what I'm planning to do.
 
Irish Rover said:
@westernman Thanks. I don't know anything about setting up a company in Hong Kong. Delaware is a road well travelled and plenty of information on line. I also know the authorities in Europe and Türkiye are well used to seeing this reg so not too many questions being raised. The immediate issue with UK reg is that Part 1 takes a lot of time with the need for a tonnage survey etc.
Click to expand...
You don't need to register the boat in the same country as where the company owning the boat is incorporated. There are several possibilities where you do not need any kind of residence (personal or company). One of which is Poland.

There might be an advantage to a Polish registration.
 
westernman said:
You don't need to register the boat in the same country as where the company owning the boat is incorporated. There are several possibilities where you do not need any kind of residence (personal or company). One of which is Poland.

There might be an advantage to a Polish registration.
Click to expand...
My understanding is you can not get TA in the EU with an EU registered boat.
 
westernman said:
You don't need to register the boat in the same country as where the company owning the boat is incorporated. There are several possibilities where you do not need any kind of residence (personal or company). One of which is Poland.

There might be an advantage to a Polish registration.
Click to expand...
There are quite a few Polish reg. boats in the Algarve and someone has just started advertising French reg. In my days as an estate agent I had a lot of experience with off-shores esp. Delaware until the govt. became aware and created some nasty taxes causing a lot of upset.
 
Irish Rover said:
My understanding is you can not get TA in the EU with an EU registered boat.
Click to expand...
Think you are getting confused with registration and ownership. Delaware registration is not an internationally recognised as the only one from the IS is the official Coastguard flag. However some states do recognise it including Turkey and it is widely used there because of the tax implications of being on the Turkish register. Also used by some whose state does not have a private craft register like Israel. To get a Delaware flag the boat needs to be owned by a Delaware company, which of course is offshore.

I do not see any advantage for you to have a Delaware company if you are going to have it registered in the CIs. As for TA into the EU the boat must be owned by a non EU resident which I believe you are.. So, just buy the boat personally or through a non EU (could be CIs if that suits your financial situation) and register it in Guernsey or indeed in the UK.
 
25931 said:
There are quite a few Polish reg. boats in the Algarve and someone has just started advertising French reg. In my days as an estate agent I had a lot of experience with off-shores esp. Delaware until the govt. became aware and created some nasty taxes causing a lot of upset.
Click to expand...


Thank you .... and I took stick for mentioning such !!
 
You must log in or register to reply here.

Share this page

Top