Cruisers Forum
 


Join CruisersForum Today

Reply
 
Thread Tools Rate Thread Display Modes
Old 29-05-2013, 13:44   #1
Registered User

Join Date: May 2013
Location: Vancouver, BC, Canada
Boat: Custom New Zealand Motorsailer 70 feet
Posts: 5
Registration - Panama or Canada

Hi folks, I am in the process of buying a 70 foot motorsailer which I will take from Long Beach, California to Panama, where it will stay. I am a Canadian resident and citizen. Would it be better and less expensive to register the boat in Vancouver, Canada or in Panama?
__________________

__________________
Robglenn is offline   Reply With Quote
Old 29-05-2013, 14:02   #2
CF Adviser

Cruisers Forum Supporter

Join Date: Dec 2007
Location: Wherever our boat is; Playa Zaragoza, Isla Margarita
Boat: 1994 Solaris Sunstream 40
Posts: 2,439
Re: Registration - Panama or Canada

Robglenn, I can't speak to Panama specifucally, but if it is like most other countries you will need to register it there eventually if you intend to keep it there permanently. I suspect that there will be some duties and taxes. My boat was registered in Canada, but it was also purchased in Canada. Im pretty sure you will have to pay not only the registration fee, but also HST on registering a vessel purchased in another country. Either way, I suspect that you should budget a fair bit and check out the legalities in Panama before making any decision. Another question is how long you will be able to keep the boat in California before being required to pay taxes there.


Good luck.

Brad
__________________

__________________
Southern Star is offline   Reply With Quote
Old 29-05-2013, 14:43   #3
Registered User
 
bgallinger's Avatar

Join Date: Feb 2010
Location: Jupiter, FL
Boat: Hunter 340
Posts: 350
Images: 10
Send a message via AIM to bgallinger
Re: Registration - Panama or Canada

I can't imagine why anyone would register a boat in Canada when they want to take the boat somewhere else!
__________________
bgallinger is offline   Reply With Quote
Old 29-05-2013, 14:46   #4
Marine Service Provider
 
boatpoker's Avatar

Join Date: Nov 2008
Location: Toronto, Ontario or Bahamas
Boat: Benford 38 Fantail Cruiser
Posts: 2,593
Re: Registration - Panama or Canada

Register it in Canada. No taxes due until (if ever) the boat enters Canadian waters and no you will not be requirted to register it in Panama.

Boatpoker (Transport Canada Appointed Tonnage Measurer)
__________________
That hysterical laughter you hear as you sail a way in your "new" boat ..... is the seller.
boatpoker is online now   Reply With Quote
Old 29-05-2013, 15:01   #5
Registered User

Join Date: Jul 2006
Posts: 3,949
Re: Registration - Panama or Canada

I do not know enough to be able to give you a good answer, but I will say to be extremely careful and to possibly secure professional advice on this. California is notorious for going after boat taxes due, and you have to be certain to handle the transaction in the correct manner in order to avoid those taxes prior to either registering in Canada or Panama.
__________________
Kettlewell Cruising
Kettlewell is offline   Reply With Quote
Old 29-05-2013, 15:03   #6
Registered User

Join Date: Feb 2012
Location: Toronto area when not cruising
Boat: Bristol 45.5
Posts: 668
Re: Registration - Panama or Canada

Canadian registration is $40 as I remember, although with the size of your vessel you may need a tonnage survey. Big bucks only when you enter country.
__________________
Still looking for our next boat. Have decided we want to have something that will keep us happy for the next 10 years or so. By then I will be pushing 80 and if i am still sailing that will be a very good thing.
AiniA is offline   Reply With Quote
Old 29-05-2013, 15:26   #7
Registered User

Join Date: Mar 2010
Location: Wandering around North America
Boat: Defever 43 - Gray Hawk
Posts: 602
The OP already received accurate professional advice ftom Boatpoker.
__________________
R.J.(Bob) Evans
M/V Gray Hawk, 43 Defever Offshore Cruiser
http://www.bobandmarilyn.ca
bobofthenorth is offline   Reply With Quote
Old 29-05-2013, 15:46   #8
Senior Cruiser
 
Vasco's Avatar

Cruisers Forum Supporter

Join Date: Apr 2004
Location: Toronto
Boat: CS36Merlin, "La Belle Aurore" Ben393 "Breathless"
Posts: 7,141
Re: Registration - Panama or Canada

Quote:
Originally Posted by AiniA View Post
Canadian registration is $40 as I remember, although with the size of your vessel you may need a tonnage survey. Big bucks only when you enter country.

Last time I registered a boat in Canada I think it was $350 and that was nearly ten years ago!! My first Canadian registered boat was in 1984 and it was about $200 then! If the boat is under 12 meters no tonnage survey is required.
__________________
Rick I
Toronto in summer, Bahamas in winter.
http://groups.yahoo.com/group/beneteau393/
Vasco is online now   Reply With Quote
Old 29-05-2013, 17:08   #9
Registered User

Join Date: Jul 2010
Location: New Mexico, USA
Boat: International Etchells USA 125 Black Magic, Santana 20 475 Ghost, Hobie 33 3100 Bruja, dinghies,
Posts: 1,118
Re: Registration - Panama or Canada

Is there really such a thing as a Canal discount for Panamanian registry?
How does Panama handle owner liability compared to some other offshore "havens"?
__________________
Pat, from the Desert Sea http://desertsea.blogspot.com
rgscpat is offline   Reply With Quote
Old 29-05-2013, 17:30   #10
Registered User
 
Tafika2's Avatar

Join Date: Jan 2011
Location: Los Angeles Area
Boat: Jeanneau SO 42DS - Tafika II
Posts: 37
Images: 1
Send a message via Skype™ to Tafika2
Re: Registration - Panama or Canada

If you take delivery in California, they will hit you with the sales tax IMMEDIATELY. It will be part of the check you write to the seller. Register in Canada or Panama, but take possession of the boat "offshore" thru a captain and your broker.
__________________
Tafika2 is offline   Reply With Quote
Old 30-05-2013, 11:42   #11
Registered User

Join Date: May 2013
Location: Vancouver, BC, Canada
Boat: Custom New Zealand Motorsailer 70 feet
Posts: 5
Re: Registration - Panama or Canada

Hi Guys, and thank you heaps for all this excellent advice. The broker has suggested that we take delivery of the vessel (finalise the sale) 3 miles out to sea as this will effectively make the purchase a non-USA transaction and hence save the payment of California sales tax (as per Tafika2 concern). We will then have 89 days before we must leave California, which will give us enough time to prep' and refurb' the boat.
We will probably register the boat eventually in Panama, if that makes sense at the time, but initially it looks like Canadian registry is the way to go. We will check thoroughly with Revenue Canada regarding the "foreign" purchase being exempt from HST. Thanks again Folks, and please continue with comments or input as I am learning something new all the time.
__________________

__________________
Robglenn is offline   Reply With Quote
Reply

Tags
Canada, Panama, registration

Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off




Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -7. The time now is 13:31.


Google+
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
Social Knowledge Networks
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.

ShowCase vBulletin Plugins by Drive Thru Online, Inc.