UK resident, soon to be Canary resident, hoping to buy a yacht in the Canary islands

R

RMD

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Hi All,

I am currently a UK resident but will become a Canary islands resident next year (2027). I have seen a yacht I would like to buy which was sailed from UK to Canarys under TA and currently berthed in the islands. I intend to sail the yacht in the Canary islands only. The current owner is non-EU and the TA has currently expired.
My understanding is that the yacht is currently classed as non-union goods.
My question is what would the legal (expired TA, forced importation) and financial (Canary taxes, penalties) implications be:
If I were to buy her while a UK resident?
or
if I were to buy her as a Canary resident ?

Thank you for any advice you can give.
R
 
Although part of the EU the Canary Islands are not in the EU VAT area so TA does not apply. However you may well have problems with registration as when you become non UK resident you can no longer use the SSR. You may also find that as a local resident you will need to comply with local rules on licencing. Hopefully CI resident forum member billskip will be along to comment on this aspect.
 
Why are you losing UK residency ? OK - I have still have my full rights as a UK Citizen .. but as I do not have a UK address - SSR is refused. This may be your case ? I can strangely have Pt1 Registry though .. but costs and complexity outweight that option.

As to Canary Islands - I cannot answer for that location ... but would it not be similar to most other states - if the craft is still there after its allowed period - then surely penalties will be applied regardless of what happens ? If you buy it - then penalties may transfer with title ? to you as new owner ?

Would Canary Islands apply similar rule as other EU states - you can only register the craft by showing it was already registered elsewhere and that you have a letter of Cancelling that registration ... its serious here in Baltic States - primarily to reduce the number of scrap boats being brought in ! When I registered my 25ft with Latvian Registry - I had a letter of cancellation from SSR.
My 38ft when I bought - was placed on the Swedish Cruising Clubs International Registry which then opened up all EU for it .... 50 euros for 2 years .. think its just gone up a bit ... but its easy to apply .. cheap as chips ... literally anyone can do it ..

IMHO - question comes down to the crafts present legal and penalty situation in Canary Islands ... if that's easily sorted and not prohibitevly costly - then exploration of registry solutions ...

NOTE : I do not post this as a solution. Just a discussion post and possibility ??
 
Good luck.

I thought buy property in Spain had meant an increase in tax by 200% or something crazy?

Was that correct or fake news.

Or perhaps it does not matter to you for whatever circumstances.
 
RMD said:
Hi All,

I am currently a UK resident but will become a Canary islands resident next year (2027). I have seen a yacht I would like to buy which was sailed from UK to Canarys under TA and currently berthed in the islands. I intend to sail the yacht in the Canary islands only. The current owner is non-EU and the TA has currently expired.
My understanding is that the yacht is currently classed as non-union goods.
My question is what would the legal (expired TA, forced importation) and financial (Canary taxes, penalties) implications be:
If I were to buy her while a UK resident?
or
if I were to buy her as a Canary resident ?

Thank you for any advice you can give.
R
Click to expand...
My advice would be put this exact question into Googles Gemini AI (AI Mode) found on the Google search home page ...

1769759656848.png
I pasted your post in there and got the following reply ...
Buying a yacht with an expired Temporary Admission (TA) in the Canary Islands carries significant risks because the vessel is already technically in "forced importation" status. The Canary Islands are part of the EU Customs Union but outside the EU VAT area, applying their own tax, the IGIC (typically 7%).

Scenario 1: Buying as a UK Resident (Current)
  • Legal Standing: You cannot "reset" a TA that has already expired while the boat remains in the territory. As a non-EU resident, you would typically qualify for a new 18-month TA, but because the vessel’s previous TA is expired, it is currently a "non-union" good in breach of customs.
  • Financial Implications:
    • IGIC: You may be forced to pay the 7% IGIC (Canary Islands' VAT equivalent) immediately upon purchase to regularize the boat.
    • Penalties: Customs may impose fines for the overstay. In severe cases, they can seize the yacht until all dues are settled.
    • Registration Tax: As a UK resident, you are generally exempt from the 12% Spanish Matriculation Tax (Impuesto de Matriculación) as long as you do not spend more than 183 days per year in Spain.

Scenario 2: Buying as a Canary Islands Resident (2027)
  • Legal Standing: Residents are not eligible for Temporary Admission. Buying the boat as a resident triggers an immediate obligation for permanent importation.
  • Financial Implications:
    • IGIC: You must pay the 7% IGIC.
    • Matriculation Tax: Yachts over 8 meters owned by Spanish residents are subject to a 12% Matriculation Tax on the vessel's current value.
    • Exemption Window: If you already owned the boat for at least 6 months while a UK resident, you could potentially apply for a "Change of Residence" exemption to avoid the 12% tax, provided you apply within 60 days of becoming a resident.

Summary of Differences

Factor UK Resident (Buyer)Canary Resident (Buyer)
TA EligibilityYes (but problematic due to current expiry)No
IGIC (7%)Likely due to clear the expired statusMandatory
Matriculation Tax (12%)Exempt (<183 days)Mandatory (unless "Change of Residence" applies)
PenaltiesRisked by seller/buyer to clear statusHigh risk if not declared upon purchase


Crucial Note: You should verify if the yacht meets the Recreational Craft Directive (RCD) standards, as importation (forced or voluntary) requires compliance with these safety regulations.
Would you like to know the specific steps for applying for the Matriculation Tax exemption under the Change of Residence rule?
Click to expand...
You can follow all the links provided and verify them yourself to double check if the AI source is trustworthy.

There is no guarantee that AI answers are correct as AIs can "hallucinate" which is why it is essential to check the sources used for the AI answer.

Disclaimer: AI hallucinations are confident but false or misleading responses generated by artificial intelligence, particularly large language models (LLMs). These, often plausible-sounding, fabrications occur because models prioritize predicting the next likely word over verifying factual accuracy. Common causes include insufficient, biased, or outdated training data.
 
Neeves said:
Baggy

You might want to read the rules on using AI - the Mods were very strict

Jonathan
Click to expand...
Hi, I don't think I am in contradiction of the forum rules.

The YBW forum is a community of likeminded individuals with a common interest. The purpose of the forum is to interact and converse with others interested in boats, sailing and the sea. Forum members build up a coterie of people who can be trusted.

On that basis there is no place for wholesale posting of AI generated content - which has been shown, on several occasions, to provide inaccurate data.

By all means consult AI off-forum, but posts on-forum should be in the words of the individual. A personal communique with other community members, sharing information drawn from one's own knowledge and experience.

Please, keep it human.
Click to expand...

The forum rules state "there is no place for wholesale posting of AI generated content" ... two words are important in this sentence IMO.

"wholesale" ... when used as an adverb and in this context I take to mean "as a whole and in an indiscriminate way."
1769856244499.png
... none of my posts have been "wholesale" or done in an indiscriminate way - AI was the subject of my post, not the content.

What I have done IMO, is encourage others to consult AI off-forum. I have given examples of the sort of answers they can expect - which are referred to as AI content - and I have tried to highlight issues with AI, as well as encouraged users to go to the AIs source links to make their own mind up.

A "wholesale posting" would IMO be AI content and nothing else.

The forum rules also state "By all means consult AI off-forum" ... which I was encouraging other posters to do in a responsible way IMO.

The second word that is important is "generated". I am making the assumption that this refers to Generative AI which is capable of creating content without providing explicit references to sources. e.g. AI generated pictures, poems, or stories. Obviously, when asking questions of AI, the content is also generated but because the links to the sources used to generate the content are highlighted in Gemini, they can be checked to validate the AI answers.

I would hope my posts are not therefore contradicting the terms and conditions, and that they are promoting a responsible use of probably the best internet tool since google search started ranking content.
 
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