Med to Caribbean Crossing Dilema - Schengen Problem?

[barnakiel]

Originally Posted by skipmac

Oh Really? Now that may shoot down my plans, depending. So what sort of tax might a tax resident have to pay? I won't be earning any money there so wouldn't be worried about income tax.

And VAT? Also not a worry unless they would want to charge me VAT on my boat. That would obviously be a deal breaker for this plan.

Methinks a little further investigation is warranted.

Some implications, in some EU states are:

- obligation of registering your car there (if you have one),
- obligation of registering you boat there.

In some states this 'registration' implies, de facto, taxation.

AVOID becoming a tax resident in the EU unless your personal, professional and tax situation dictates otherwise.

b.

[skipmac]

Originally Posted by barnakiel

Give it a shot.

If it does not work, remember the distance from Italy to France is not all that much different from the distance to Tunisia. It could be pretty boring after all, if you move only between the EU states turning your back on the African coast. After all, if there is anything left to explore in the med then it actually on the African side of the sea.

b.

Well depends. Ventimiglia Italy to Venton France is only 5 Km.

But it may end up that back and forth from EU to non-EU may be the only answer. Just may not always be convenient when ones Schengen limit runs out and there's a Sciorocco or one of those other, funny named, Mediterranean winds blowing.

Another concern, which may be moot by the time I quit the rat race and go cruising again, things in some parts of north Africa and the middle east do seem to be a bit dodgy at the moment. I've had enough excitement in my life already and have no desire to be on the news.

[stevewrye]

We are thinking the long term visa for France when we pick up the new boat next June. Seeing we will have 6 months in Europe before we can cross we use three or four months of the long term in France then go to the 90 day visa for the trip south before crossing.

We will be going over to France to see how the boat is coming along in a couple of weeks and will check and see if we can really do that and what type of a long term visa they would give out. I hope France has a visa for folks who are spending money for a new boat and supporting the local economy. I will let everyone know what we find out.

[svlamorocha]

Originally Posted by SVAspen

Thanks everyone for the responses so far.
It seems that if we had an EU passport AND a US passport then the boat will be taxed after only 1 month in the Schengen countries because the vessel is a US boat and the owner (me) would use an EU passport. At least that is how I read the wording. So dual passports might not be as easy either.

I presume the "tax" you are referring to is VAT, which is supposed to be harmonized across the union, but not quite.. I did all the research about UK VAT rules a couple of years ago and HMRC told me that in theory the EU passport (or EU registration of the boat) do not mean that you lose the exception (18-month or whatever) that they have for "tourists that reside outside the EU". The issue was that the EU passport or EU reg acts as a red flag that may prompt people to ask if you are actually a nonresident of the EU, hence ineligible for the VAT exemption....

[barnakiel]

Originally Posted by skipmac

(...)

Another concern, which may be moot by the time I quit the rat race and go cruising again, things in some parts of north Africa and the middle east do seem to be a bit dodgy at the moment. I've had enough excitement in my life already and have no desire to be on the news.

The point is the adventure starts where the security ends: too far, too different, too dangerous are the places that make quiting the rat race worth it!

Med, because of its mind-bludgeoning homogeneity of its EU shores, would be my last choice to stick around. Go north, where things are varied (pack your skis!), or south, where they are 'exotic' to the western mind.

In any case, have fun, stay way from bureaucratic nonsense, fair winds!
b.

[David_Old_Jersey]

Originally Posted by skipmac

Oh Really? Now that may shoot down my plans, depending. So what sort of tax might a tax resident have to pay? I won't be earning any money there so wouldn't be worried about income tax.

Some Countries (US for example) will tax you on your worldwide income, no matter where it was generated / earned.

So becoming a tax resident in the US and earning squillions in bank interest in Germany does not mean that the IRS won't be looking to tax you - that's what double tax treaties are all about.

Using made up figures!..........if Germany is taxing you at 10% on bank interest and the US at 20% then you don't get taxed twice ....but you do effectively get taxed at the highest rate (10% paid in Germany and 10% paid in the US).....of course also works the other way around!

and VAT? Also not a worry unless they would want to charge me VAT on my boat. That would obviously be a deal breaker for this plan.

the key is not to become a tax resident. as bill falls due on day 1 of that happening. You can become a tax resident immediately upon arrival (and sometimes that is a good thing! - but in your circumstances likely not ) or after 10 years after living happily somewhere permanently (likely by officialdom not knowing!).......it's the grey are in between that is usually........grey . Broad rule of thumb is 6 months (but not set in stone). and as a rough "test" as to whether you are visitor or resident, if you had to leave in a couple of days would you a) be very upset b) have difficulty re-organising your life c) don't immediately know where you are going to and d) struggle to pack .

Methinks a little further investigation is warranted.

+1. for everyone. Ignorance does not cure tax problems - it only creates them.

[carstenb]

Hi Skipmac,

I'm not surprised if you don't speak english. Americans (with very very few exceptions) speak american, which is definitely not english. But you probably do speak fluent american. As the english like to say "Americans and Brits are separated by a common language"

FYI some common english terms with different meanings than in american:
windscreen, boot, bonnet, jumper, knickers,telly, bangers, and many many more

[goboatingnow]

Originally Posted by stevewrye

We are thinking the long term visa for France when we pick up the new boat next June. Seeing we will have 6 months in Europe before we can cross we use three or four months of the long term in France then go to the 90 day visa for the trip south before crossing.

We will be going over to France to see how the boat is coming along in a couple of weeks and will check and see if we can really do that and what type of a long term visa they would give out. I hope France has a visa for folks who are spending money for a new boat and supporting the local economy. I will let everyone know what we find out.

No they don't , long term visas are usually for work, study or the like. It's not a way of getting a "quick" extension to a tourist visa.

Dave

[skipmac]

Originally Posted by carstenb

Hi Skipmac,

I'm not surprised if you don't speak english. Americans (with very very few exceptions) speak american, which is definitely not english. But you probably do speak fluent american. As the english like to say "Americans and Brits are separated by a common language"

FYI some common english terms with different meanings than in american:
windscreen, boot, bonnet, jumper, knickers,telly, bangers, and many many more

How right you are. I do a good bit of business with a couple of companies in the UK and we have a lot of fun with this. Had to ask when they said to meet them for breakfast at half seven. Really got my attention when the sales manager said she would come by to knock me up.

[David_Old_Jersey]

Originally Posted by skipmac

How right you are. I do a good bit of business with a couple of companies in the UK and we have a lot of fun with this. Had to ask when they said to meet them for breakfast at half seven. Really got my attention when the sales manager said she would come by to knock me up.

Or do you fancy coming outside for a fag?


and of course the US folks being geographically challenged when it comes to the location of the Fanny may explain a lot...........

[skipmac]

Originally Posted by barnakiel

The point is the adventure starts where the security ends: too far, too different, too dangerous are the places that make quiting the rat race worth it!

Exactly so. If I wanted the same old thing every day I would just stay home.

But one can get a bit too much of different and dangerous and go from an exciting adventure to having no fun at all. For example I would probably draw the line at cruising Syria or the Somali coast, at least for now.

Originally Posted by barnakiel

Med, because of its mind-bludgeoning homogeneity of its EU shores, would be my last choice to stick around.

Well perhaps to you but for me, at least for a while, the EU shores of the Med would be new and different. I spent a few years cruising the Bahamas and norther Caribbean and much of that is starting to look pretty homogeneous to me but others find that area quite exotic.

I guess a classic example of the grass is always greener on the other side of the fence or, in this case, the water is always bluer on the other side of the ocean.

Originally Posted by barnakiel

Go north, where things are varied (pack your skis!), or south, where they are 'exotic' to the western mind.

North is certainly on the agenda. Have a good friend from Denmark (named Bjarne, maybe you guys are cousins ) who insists I have to come sail the Baltic. Problem there is, if I use up my Schengen days in the north I'm a long way from Africa. I think, if I understand the bureaucracy correctly, that the UK is outside Schengen so could go there to reset the clock.

Originally Posted by barnakiel

In any case, have fun, stay way from bureaucratic nonsense, fair winds!
b.

Unfortunately the bureaucratic nonsense seems to be proliferating so may be unavoidable at times, but fun, always.

Thanks.

[skipmac]

Originally Posted by David_Old_Jersey

Or do you fancy coming outside for a fag?

No thanks, trying to quit.

Originally Posted by David_Old_Jersey

and of course the US folks being geographically challenged when it comes to the location of the Fanny may explain a lot...........

Fanny? Is that some sort of Brit slang for a source of wind, like a fan?

[carstenb]

If a british girl ask

"say love care to have peek at my knickers?". She 's not asking if you want to play golf

On the other hand if you meet a woman golfer in "plus fours" you probably shouldn't say. " gads, i love your knickers"

[skipmac]

Now this is what I call thread drift. All the way from Schengen visas to knickers.

[goboatingnow]

yes enter any US hardware store and ask for a torch, expect a few funny stares and comments