Originally Posted by David_Old_Jersey
I think broadly that would be true (presuming that you are not an EU Resident - in addition to being a US Citizen).
A boat (as anything) can have a different value to different people - in this case a VAT paid boat is worth more to a European (where the principle market is for a European based boat) than it is to you.
But accepting that will likely involve less choice of vessels based within Europe
, especially for those that are older than the coming out of Charter
and possible that the difference in prices not enough to pay the actual VAT - so if boat to be based inside the EU probably better off buying
already VAT Paid.....but if that not the case I would certainly be looking for a VAT Free vessel - unless one could luck upon a steal
1) Thank you DOJ
for the much improved Avatar. Have been to Somali 3X in the last 18 months and your Avatar was scarier than those trips.
2) We just closed on a large mono in Spain
on 2/3/2012. The Bank who had repo'd the boat and was an EU VAT paid purchase
boat furnished us a VAT Tax Exempt Form/Letter & number @ closing. The night before closing as we were working on the boat they sent a painter over who changed the home port and country on the rear transom. He also gave us a check for $300 USD to have the name changed later if we wanted and the painter also brought along a new Cayman Islands
Flag for the boat. If I had known wouldn't have ordered one for delivery
the next day @ closing. Was surprised that the bank had the home port and country & flag changed to where we were registering the boat in the Caymans. Perhaps because we both had dual citizenship in the US and 2 different EU countries and I am also a resident of the Cayman Islands
. We purchased the boat through a Cayman Corp which is quite easy to do and though the Caymans do have not property taxes
but a 20% VAT boats are EXEMPT from the VAT. Hence it is a legal
tax haven for many.
Since checking out & leaving offshore Spain
after closing on 2/3/2012 we stopped @ France
, Monaco, Italy
, Southern Spain, Gibraltar
, and Portugal
which we just left enroute to the Canaries
was 10 mins or less except in Gibraltar
. Gibraltar actually came out to look at the transom all the while telling us it was a fineable offense to be sailing with the wrong flag, home port and country id'd on your boat. Shut his mouth when he saw all was correct. Score one for the bank! Portugal took forever going over the VAT paperwork (80 min) and also asked about the transom but when I showed him the cell phone
pic of the transom we were cleared. The only reason we had stopped in Portugal was to look at my future father-in-laws new Villa on the ocean which he bought for tax reasons in Portugal though he is a French citizen. He never mentioned it till he meet us in Gibraltar and saw our new boat though we have been in Europe and many a night @ his home for the last 2 1/2 months.
Seems best to have good legal
council when dealing across international boundaries IMHO. The bank knew what they where doing when they changed the flag, home port & country to avoid problems but have never seen or heard of this being an issue reading the forum. (but admit have not read all the posts! LOL!)
Called the bank Friday after Gibraltar incident and the bank president told me he had heard that petty enforcement leading to large fines for large boats was a new problem that they were hearing about with/due to the economic downturn and govt budgets. He had heard that the agent writing the fine was getting 10% as a "finders fee" but he had no hard or written proof but that is why the bank paid to change the flag, home port, & country rather then have a potential problem with a new cash purchaser.
chiquita is looking good as your new avatar! KEEP UP THE SOMETIMES USEFUL & HUMOROUS POSTS.
John & Carol
(living the dream on our new boat)