The time has come to move on to the next level of flag theory for the person who has successfully opened an offshore bank account, got a second passport and is living the lifestyle of their dreams traveling the world. This new level is one where the focus shifts from purchases that are largely for diversification purposes toward purchases implied purely to enhance your lifestyle like sailing.
For numerous who reach this stage, the following action is to combine travel and leisure by investing in the purchase of a yacht.
Unlike purchasing a new car or even a house purchasing a yacht is an investment of a worldwide nature, and choosing the most useful country for yacht registration is a decision for which you need expert advice so you don’t expose your assets to unnecessary taxes and liabilities. If you go fully into the process uneducated, your exciting new purchase might just become nothing more than a hole within the water into which you affine de unneeded amounts of money.
As with other worldwide strategies, the country in which you register your yacht can have an enormous effect in the sum of money you will be able to truly save, along with your freedom of travel. You are kept by some countries from easily planning a trip to other jurisdictions, others charge high tax percentages or enrollment fees, and others do none of those things. When purchasing a yacht, the decision of yacht flags is one of the most important choices you have to make because it could have a direct influence on your privacy, taxes, along with your exposure to obligation. Just as you would develop a corporate structure to protect your other assets, you should do similar when it concerns yacht registration.
That is why, many motorboat owners opt to join up their yacht in places like the Cayman Islands to avoid the onerous taxes and regulations associated with United States and other western governments. Panama, with its favorable registration policies, is the ship registry that is largest in the world with over 9,000 ships flying its flag.
However, it is also very essential to accomplish your due diligence in selecting a country for yacht registration by using a professional. Once your vessel is registered in country, every one of the country’s laws will use to your boat. Many countries which have attractive taxation structures have actually other issues that you’ll want to avoid, such as laws that require you to hire a crew completely composed of nationals from that nation.
You will also want to register your yacht in a national country that is well respected by the US while the EU. If you choose a country with a bad reputation, it can limit where you are allowed traveling, or at least, cause you to susceptible to more detentions and inspections.
The flag state has the responsibility to enforce laws over vessels registered under its flag, so yacht registration under countries on the Paris Memorandum of Understanding (Paris MoU) on Port State Control’s black colored or gray list will come under more scrutiny in inspections. Because of this, a majority that is large of are flagged in British Overseas Territories, known as the ‘Red Ensign Group’ including Bermuda, Gibraltar and also the Isle of Man.
These countries have acceptable safety regulations for travel in EU countries, while also having more tax that is attractive compared to the UK. The Isle of Man, the Cayman Islands, and Bermuda in fact, company tax is set at 0% in the Channel Islands.
This is certainly particularly ideal for those that wish to spend time in European Union waters, as vessels owned or used by EU residents are subject towards the EU’s Value Added Tax (VAT). Private yacht registration with a flag that is non-eu an owner to operate under a “temporary importation structure” which allows for 18 months free of these taxes or customs duties. After the 1. 5 years are over; the ship owner can re-apply because of this status.
Visit Yacht Registration Malta for more information and statistics.