Turkish Question

capnsensible

capnsensible

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Was in Yalikivak last Tuesday. A significant number of yachts and motor boats were US flagged, often registered in Delaware. As these were clearly not US manned, we wondered if it was some sort of tax thing.

Can anyone help with the answer??

Ta.
 
A lot of Turkish owned boats are American flagged. I spoke to a Turkish owner who told me American registration was very easy to get.
 
Delaware is a flag of convenience state. All you need is a $100 Delaware company to own the boat and you can US flag it. It is a dodge used by lots of Turks to avoid heavy Turkish registration fees. Some American sailors I know are very annoyed about the misuse of their flag.
 
Thanks, chaps. Had a suspicion it was money orientated. It came as quite a surprise to see so many US flags.

Top place, loved it. Would liked to have stayed longer. 'I shall return'

CS
 
Very Funny

I too was surprised to be surrounded by so many "fellow countrymen" since I had only seen a few on my way to Turkey. But closer inspection revealed the truth.......:confused:

Historically, Delaware was used by many US companies as a legal address due to favorable incorporation / tax laws.

Now to see being used overseas by boat owners is pretty funny.

Been told & saw that Russians are also using the same tactic especially on mega yachts - but the size of boats range from 21' motorboats all the way up.

It's so funny to me because Delaware is soooooooo small all these boats would never fit in the state:D
 
vyv_cox said:
Many Israeli boats are registered in Delaware USA. The Turks expelled them a couple of years ago after the Gaza trouble. Many seem to have re-registered as American.
Click to expand...

Good afternoon:

Afraid you might have been talking to some Israelis, who are prone to complain, but Turkey did not expel the Israeli yachts after the Mavi Marmara incident. Those I know bought the Israeli propaganda hook, line and sinker and left in a hurry even though some had months remaining on their contracts.

Am sure that many now feel rather foolish for having done so.

Cheers

Squeaky
 
It is not really a tax dodge in Turkey, more a way to be able to afford to participate in boating on any level!

Anyone who can afford to import a new boat into Turkey, has far too much money to be concerned with a tax dodge, and in any event, there are far more lucrative tax dodges, than paying for the boat! You could for instance just declare your annual income to be about the same as your monthly income!

However it is illegal for a Turkish Citizen to own a foreign registered boat! It is also illegal to import a second hand boat into Turkey!

Therefore with a very small stock of second hand boats for resale, the only way the majority of Turkish citizens can afford a boat in Turkey is to register a company in Delaware, and then effectively the company owns the boat!
 
Squeaky said:
Good afternoon:

Afraid you might have been talking to some Israelis, who are prone to complain, but Turkey did not expel the Israeli yachts after the Mavi Marmara incident. Those I know bought the Israeli propaganda hook, line and sinker and left in a hurry even though some had months remaining on their contracts.

Am sure that many now feel rather foolish for having done so.

Cheers

Squeaky
Click to expand...

A number of Israelis arrived at Leros, signed contracts for berthing here. They said they had been 'expelled' from Turkey. I know no more.
 
Turkish/american yachts

There is a little more to it. By registering in Delaware they avoid paying KDV (Turkish VAT) at 18%.

Turkey did offer a tax amnesty a couple of years ago with a reduced KDV if the owner brought his yacht back into Turkish ownership. All the owners I spoke to at the time were concerned that Turkey would 'undo' the amnesty in a couple of years (apparently they have a habit of retrospective taxation, which the UK Gov seems to do now) and demand the full amount.

Also they explained that if they did become Turkish owned they would have to explained the 'unearned income'
 
maxy said:
There is a little more to it. By registering in Delaware they avoid paying KDV (Turkish VAT) at 18%.

Turkey did offer a tax amnesty a couple of years ago with a reduced KDV if the owner brought his yacht back into Turkish ownership. All the owners I spoke to at the time were concerned that Turkey would 'undo' the amnesty in a couple of years (apparently they have a habit of retrospective taxation, which the UK Gov seems to do now) and demand the full amount.

Also they explained that if they did become Turkish owned they would have to explained the 'unearned income'
Click to expand...

ÖDV ıs the Turkish equivolent of VAT at 18%, KDV is an additional super VAT, added on top of VAT for special luxury items like mobile phones and cars (imported) I think a reasonable sized BMW now incurrs 120% KDV! :eek:

No Idea what the KDV rate is for boats!, but it varies anyway (based on value probably) But in any event a Turkish citizen cannot import a second hand boat, and or register it in Turkey, it is against the law!

In 2009 (I think), the Government allowed an amnesty for Turks (with existing vessels flagged under other states) to be able to import and register their vessels under a Turkish flag. Nothing to do with VAT, since Turkish flagged vessels pay a Bi-annual tax for registration (based on engine size) anything above 10 hp is liable! The idea was to generate a little more annual revenue with registration fees!
 
vyv_cox said:
A number of Israelis arrived at Leros, signed contracts for berthing here. They said they had been 'expelled' from Turkey. I know no more.
Click to expand...

Good evening:

There is a phrase that runs something like "Now they would wouldn't they?". Something to do with the Jewish national character I suspect - always picked on.

Cheers

Squeaky
 
satsuma said:
ÖDV ıs the Turkish equivolent of VAT at 18%, KDV is an additional super VAT, added on top of VAT for special luxury items like mobile phones and cars (imported) I think a reasonable sized BMW now incurrs 120% KDV! :eek:

No Idea what the KDV rate is for boats!, but it varies anyway (based on value probably) But in any event a Turkish citizen cannot import a second hand boat, and or register it in Turkey, it is against the law!

In 2009 (I think), the Government allowed an amnesty for Turks (with existing vessels flagged under other states) to be able to import and register their vessels under a Turkish flag. Nothing to do with VAT, since Turkish flagged vessels pay a Bi-annual tax for registration (based on engine size) anything above 10 hp is liable! The idea was to generate a little more annual revenue with registration fees!
Click to expand...

Sorry Samosa, KDV is VAT OCV is a special tax levied on various products including cars, at various rates.

Turks may not own foreign flag boats within Turkey correct. A Turk representing a foreign corporation (which he may well own) is allowed to obtain a transit log for his (and friends) use, but otherwise Turkish nationals are not allowed on foreign flag yachts unless they possess dual citizenship.
 
Delaware vs US

Struck me after initial post.
In the US, there are state vessel registrations and National (US Coast Guard) documentation (which is often preferred by financial institutions and Owners who sail outside US Waters.
Some countries prefer USCG documented when checking in as there is an easy trail to check on the boat and the paperwork is standardized.

Some owners using the Delaware / US flag don't seem to hide their nationality looking at other flags, etc in conspicuous non-standard places.

But fun to see Delaware town names on all sorts of boats:)
 
Turkey using any old flags

:mad:We have seen hundreds of yachts with US registration over there. Some even fly the US flag upside down - we have a photo taken in Kas marina in June with one!!! Russians too are using UK ensigns, US flags. Its a joke now to take it that your country's flag is for your country's people. Many Turks are using second hand yachts, i.e. Moodys Westerleys etc and just keep flying the flag of the country is previously belonged to including Germany and Netherlands!! Most of these guys can't even speak english. The Gulets are also using US, UK and all sorts of other county flags. Bit of a mess really!!!
 
[QUOTEIts a joke now to take it that your country's flag is for your country's people. ][/QUOTE]

No its for where the boat is registered. As a UK citizen with a residency permit I can and have purchased a Turkish registered and flagged boat .
 
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