Country of Registration for World Cruising

[barnakiel]

Originally Posted by goboatingnow

...I'd suggest you avoid the EU and especially the UK with that type of setup. Mostcustoms officials see it for what it is , trying to avoid tax...

Yes/No - Most customs do not really care - as long as we do not stay longer than the allowed period (often 18 months (6 and 12 also common)). Even EU registered boats may get in trouble in EU, if they 'overstay'. Stupid, but a proven fact.

b.

[goboatingnow]

Personally, my boat is U.K. flagged although I am a U.S. citizen. That's really only because she was VAT-paid when I bought her and will eventually be sold to an EU citizen, probably. It's just easier that way, but I could have flagged her in the U.S. without killing the VAT status, if I had wanted to.

Actually you can kill the VAT status , simply removing her from the EU from more then 3 years can make you liable to VAT on re-import. irrespective of flag state. VAT never ever cares about flag state

not stay longer than the allowed period (often 18 months (6 and 12 also common)). Even EU registered boats may get in trouble in EU, if they 'overstay'

EU registered boats cannot get into trouble , they cannot overstay. Their owners can however , if they stay long enough to become tax resident, but that has nothing to do with the boat "overstay"

BTW, I'm not the OP, but I say again, if you are a EU tax resident and you cruise the EU with a foreign ( ie non EU ) flagged vessel, customs will pay you a lot of attention, quoting rules affecting large ships has no relevance to pleasure craft.

PS: Forget Ireland as a country of registration, its a very difficult process specifally designed for large merchant ships and very unsuitable to pleasure craft. It also requires the craft to be physically present in Ireland

[SydneyTim]

Originally Posted by hoppy

Not that I am planning to do it, but I wonder what they would do with me if I stopped over on a Swedish registered boat when I have both Aussie and Swedish citizenship and I am not Aussie resident I feel it would lead to a lot of

I am in a similar position as I have dual UK/AUS citizenship and sail a UK flagged boat. 3 years ago I rang Customs in Bundaberg and they told me I would have to pay GST as soon as I arrived, even if for a flying visit and there were no possible exceptions.

I rang a tax specialist where I worked (Ernst & Young, so they know a bit!) who told me that under section blah blah of the UN Convention Of Touring that bona fide tourists cannot be charged import duty on their possessions and hence they couldn't levy GST on our boat just becuase we held Australian citizenship if we were tourists. He took this to mean proving you no longer lived there, non resident for tax, no permanent palce of abode etc etc.

I rang back the Customs, spoke to the exact same guy and he said "yeah you're right" and basically admitted he had lied to me the first time about there not being any exceptions!

So I would suggest if you ever do go, get the tax info printed off and confirmed before you do and argue hard with the nice people from Customs.

The UN Convention makes sense really, as imagine going overseas on holiday without it, a country could levy import duty on you iPod, lap top, clothes, suitcase, camera etc and do it in every country you visit!

[goboatingnow]

as long as we do not stay longer than the allowed period (often 18 months (6 and 12 also common)).

ohh barnekiel, The period for Temporay Import Relief, which is what you allude to her, is 18 month EU Wide. This is extendedable to 24 months and can be futher entended is the country in question allows it under its own laws. ( 6 months was the old rule and 12 months was Never a rule!!).

Its amazing how second hand myths and rumors get turned into fact on someforums.

[barnakiel]

Originally Posted by goboatingnow

...

EU registered boats cannot get into trouble , they cannot overstay. Their owners can however , if they stay long enough to become tax resident, but that has nothing to do with the boat "overstay"...

Exactly. I did not make myself clear.

Unfortunately, becoming a tax resident will have (at times very unwelcome) implications for the boat, if she happens to be in the country of our newly acquired tax residency status. Some countries go as far as not only request 'taxes' but also making the skipper re-flag the boat - which entails all paperwork, licensing, blah blah to be re-done in the country.

This is the case in Spain, where it has not been enforced, but none the less may be at any time, should the government decide they will make more money taxing our EU boats (again) than from whatever we leave in the shops, services airfares, etc..

b.

[goboatingnow]

[QUOTE]This is the case in Spain, where it has not been enforced, but none the less may be at any time, should the government decide they will make more money taxing our EU boats (again) than from whatever we leave in the shops, services airfares, etc..
QUOTE]

sob sob sob, taxes like death etc...

Unfortunately, becoming a tax resident will have (at times very unwelcome) implications for the boat, if she happens to be in the country of our newly acquired tax residency status. Some countries go as far as not only request 'taxes' but also making the skipper re-flag the boat - which entails all paperwork, licensing, blah blah to be re-done in the country.

No one but no one should become a tax resident of anywhere without proper thought and consideration. It amazes me that boat owners seem to think that they are above the law or somehow boats are different and taxes dont apply to Me.


A boat in the eu, comes under the defintion of a transport item, like a car , plane ,etc. VAT rules are applied to "new means of transport" like boats are a little differnt then ordinary goods.


ALL EU countries, where boats, cars and planes are registered require you on becoming a resident to "re-register" these tranports items and conform with the country specific rfules for these items, In spain that is a matriculation tax, in france for boats their is a annual charge for lights and niaviagtion, in Ireland you will pay 40% tax on the value of your car as a registration tax. Its not just Spain.

Note that Transfer of Residence Relief is available so if you are a bonefide person changing where they live , you can generally bring in all your possessions tax free. ( and that includes spain).


What gets me on these forums, its that boaters sem to think they can stay anywhere for any length and complain when hit with taxes, TOUGH, the fact is you cant stay anywhere for anylength of time and not be subkect to laws. FACT. There was a post some time ago about a Belgian who stayed on his boat in spain for a year and then complained when they hit him with the matric tax, TOUGH , thats the law, ignorance of it is not a defense.

[Reality Check]

Originally Posted by Pelagic

If you are a US citizen Mark, flagging your vessel in another country while world cruising is a good idea.

The primary advantage though is to not have to import your vessel into your home country...if you do not plan on keeping it there. Perfectly legal and ethical, just the same as if you were buying a foreign house

I have never had a problem being an American purchasing a boat in a foreign country and Documenting it as a US vessel... none at all. To my knowledge my boat was built but never owned and sailed in the US. It was shipped out of country when completed.

I have no US taxes as I do not take her to the US and probably never will. If I do it would be to Florida where after 90 days I would have to get her registered with the State of Florida.

In any case their is no big deal at all with having the Documentation nor any disadvantage in having it.

[barnakiel]

Originally Posted by goboatingnow

...There was a post some time ago about a Belgian who stayed on his boat in spain for a year and then complained when they hit him with the matric tax, TOUGH , thats the law, ignorance of it is not a defense...

Yeah, just would be so much nicer if our fat politicians could make it clear that the first right of a EU citizen is - THE RIGHT TO BE TAXED MANY TIMES OVER AND THEN ONCE AGAIN ;-)))))

Not much freedom left.
b.

[Albro359]

Originally Posted by SydneyTim

One specific issue for Oz citizens is that if you arrive in Oz on a foreign flagged vessel but you are the owner they will slap GST on you the second you arrive even if only passing through with no plan to import.

THAT is exactly the reason my boat is in New Zealand....for the GST I would have to pay to bring her here, thats a hell of a lot of plane fares back and forth.....by comparison theres nowhere to cruise here anyway !

Alan