Registration - Panama or Canada

[Robglenn]

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?

[Southern Star]

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

[bgallinger]

I can't imagine why anyone would register a boat in Canada when they want to take the boat somewhere else!

[boatpoker]

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)

[Kettlewell]

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.

[AiniA]

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.

[bobofthenorth]

The OP already received accurate professional advice ftom Boatpoker.

[Vasco]

Originally Posted by AiniA

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.

[rgscpat]

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"?

[Tafika2]

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.

[Robglenn]

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.