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"Flag of convenience" is not a term that is only associated with large yachts (or ships). There are many other reasons why ordinary mortals with ordinary boats may want to register in a country other than their own.
Absolutely right!
I have a Dutch flag and I live in the Czech Republic.
Why? Because the amount of fees, separate inspections in separate entities of the boat and engine, plus the annual fee I would have to pay just to have the "right" to fly a Czech flag is beyond absurd. And every year it would be a "play it again, Sam".
Unfortunately, registering it under my nationality (Portugal) would be even a bigger nightmare...
But having a flag of convenience does NOT give me a "get-out-of-jail-free-card", since all boats ARE subject to local laws, if and when the "host" State so decides*. Local licence requirements and mandatory safety equipment MUST be met! The only thing I have avoided were the inspections, boat classification requirements and annual fees. Period.
*exceptions are made to (some) US registered boats, where the boat is actually goverment "property" and therefore cannot be held by another country without causing a diplomatic conflict.
In Portugal, there were numerous cases of people registering boats with a flag of convenience with the sole purpose of trying to avoid holding a licence... and that ened up the with boat seized until a licence was presented to the authorities.
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