Registration and Taxation of Yachts in Finland

[Dockhead]

Anyone know the rules?


I have spent four summers in Finnish waters without any issues, but that was before Brexit. My boat will be based in Helsinki this summer and I consider leaving her over the winter even, as I am very busy with one project and might prefer not to sail her back to the UK.


It would be useful to know whether any problems occur after 6 months as they do in some places (like Spain). I know that there is no obligation to register yachts in Sweden, and no taxation. Is it the same in Finland?

[ChrisseH]

Do not recall the exact definition, but Finnish sailing yachts and power boats have to be registered, but there is no tax with the exception of 24% VAT. In regard to length of stay it is 18 months for pleasure crafts registered and owned by non-EU nationals.

[hellosailor]

Dockhead-
Especially given that Brexit may or may not happen, and the UK may ask for a year's extension, I would want WRITTEN responses from the Finnish authorities as to what their regulations and policies will be. And then, sadly, presume the worst and comply with it.
Given that there's really no reliable way to tell what's coming, bringing the boat back to the UK, or making provisions to get crewed up and do that in a hurry when and if the rules change, would seem to be the only two conservative choices.
If the Finns have some provision for "bonded" storage, in or out of the water, that would put your boat in stasis regardless of the changes, that would be a perfect option. But, get it in writing. From them directly.

[parkstone bay]

I #SUGGEST# the EU officials are primarily interested in whether VAT was paid on the vessel in the EU. Assuming that it was, when the boat was boat new in, say, the UK, in 2010, when the UK was in the EU, subsequent changes in the political position of the UK versus the EU #SHOULDN'T# make any difference. But whether EU officials will see things that way, is a much deeper question! But EU officials have hated UK-flagged yachts for many years, even pre-Brexit. (eg Belgian approach to red (but duty-paid) diesel fuel).

[Dockhead]

Originally Posted by parkstone bay

I #SUGGEST# the EU officials are primarily interested in whether VAT was paid on the vessel in the EU. Assuming that it was, when the boat was boat new in, say, the UK, in 2010, when the UK was in the EU, subsequent changes in the political position of the UK versus the EU #SHOULDN'T# make any difference. But whether EU officials will see things that way, is a much deeper question! But EU officials have hated UK-flagged yachts for many years, even pre-Brexit. (eg Belgian approach to red (but duty-paid) diesel fuel).

It's much more complicated than that; see separate thread on this recently. In fact you lose EU VAT paid status IF the boat is in UK waters on the day of Brexit, something I intend to avoid.


But I'm not asking about VAT. I'm asking about the obligation to register locally after a certain period of time and/or pay taxes, as exists in some countries like Spain. I can't find anything about it in the interwebs.

[alaite]

You may find most accurate info from Finnish tax office (Vero.fi) https://www.vero.fi/en/search/?query=boat

[Oceansailor]

Originally Posted by Dockhead

It's much more complicated than that; see separate thread on this recently. In fact you lose EU VAT paid status IF the boat is in UK waters on the day of Brexit, something I intend to avoid.


But I'm not asking about VAT. I'm asking about the obligation to register locally after a certain period of time and/or pay taxes, as exists in some countries like Spain. I can't find anything about it in the interwebs.

There is a difference between personal tax status and the boat.

If you as a EU citizen stay more than 6 months (calendar year) in another EU country than where you live you should change personal tax status to that country.

That means the boat can stay as long as you want in the other country. You as the owner can not stay longer than 180 days. If you do the other country can argue that your tax status should be changed. Which means you are obligated to pay any local taxes/fees on the boat.

[Oceansailor]

I will correct myself as there are some countries that have fees that we cruisers and normally the domestic boat owners have to pay. Greece, Portugal Croatia is good examples.

[BM2023]

Note that to be able to apply for the Finnish flag, you either have to be a Finnish passport holder or the vessel should be owned for at least 60% by a Finish national.

Same goes for Sweden, but they require a minimum of 50% ownership by a Swedish passport holder.

[TeddyDiver]

There's no restrictions foreign citizens to register their boat in Finland if they want to, anyway not in the law of registering of vessels in Finland https://www.finlex.fi/fi/laki/alkup/2014/20140424 , dunno if it's in some other law?
You can allways try. The fee is minimal and if that fails you could try again in commercial register (ship register), it's 150€.. No taxes as it's still EU boat. There was some !#"¤#¤ politicians trying to push annual taxes for boats but it raised so much resistance it was cancelled..

[BM2023]

Originally Posted by TeddyDiver

There's no restrictions foreign citizens to register their boat in Finland if they want to, anyway not in the law of registering of vessels in Finland https://www.finlex.fi/fi/laki/alkup/2014/20140424 , dunno if it's in some other law?
You can allways try. The fee is minimal and if that fails you could try again in commercial register (ship register), it's 150€.. No taxes as it's still EU boat. There was some !#"¤#¤ politicians trying to push annual taxes for boats but it raised so much resistance it was cancelled..

It was the Finnish Transport and Communications Agency Watercraft and registers that informed us of this 50% requirement. Possible there is an unofficial registrar, like that of the Watersportverbond in the Netherlands and the ADAC in Germany, which does not require Finnish ownership.

The law you referred to, if I may believe Google translate, refers to waterscooters.

[TeddyDiver]

Originally Posted by Lorrendraaier

It was the Finnish Transport and Communications Agency Watercraft and registers that informed us of this 50% requirement. Possible there is an unofficial registrar, like that of the Watersportverbond in the Netherlands and the ADAC in Germany, which does not require Finnish ownership.

The law you referred to, if I may believe Google translate, refers to waterscooters.

Finnish language is one of worst on Google translate, hit and mis 50/50.
The important thing is what's written in the law, not what some whitecolar official thinks is true. In that specific law there's only one thing about foreign citizens, that they don't have to register in Finland if the stay is less than 18 months. so..

[TeddyDiver]

Did some further reading about the subject. There are some limitations for foreign subjects on registering a recreational vessel in Finland but with the following conditions it's allowed.
1. Vessel is owned at least by 60% by a EU subject (a person or company etc) with home place inside EU.
2. Vessel is operated and managed from Finland
3. The owner can appoint a third party located in Finland to fullfil the point 2.
4. The vessel is removed from register in another country

BR Teddy

[Dockhead]

Originally Posted by TeddyDiver

Did some further reading about the subject. There are some limitations for foreign subjects on registering a recreational vessel in Finland but with the following conditions it's allowed.
1. Vessel is owned at least by 60% by a EU subject (a person or company etc) with home place inside EU.
2. Vessel is operated and managed from Finland
3. The owner can appoint a third party located in Finland to fullfil the point 2.
4. The vessel is removed from register in another country

BR Teddy

Kiitos!

[BM2023]

Originally Posted by TeddyDiver

Did some further reading about the subject. There are some limitations for foreign subjects on registering a recreational vessel in Finland but with the following conditions it's allowed.
1. Vessel is owned at least by 60% by a EU subject (a person or company etc) with home place inside EU.
2. Vessel is operated and managed from Finland
3. The owner can appoint a third party located in Finland to fullfil the point 2.
4. The vessel is removed from register in another country

BR Teddy

Note : as formulated by the Finnish Transport and Communications Agency (Traficom)

“A watercraft is Finnish and entitled to fly the Finnish flag if a Finnish citizen or a Finnish legal person owns more than 60 per cent of the watercraft. The ownership base will be indicated in the system according to the customer notification. A watercraft may be registered without the right to fly the flag if the nationality requirement is not met.

The right to fly the flag is indicated by the symbol of the Finnish flag on the registration certificate and by the text indicating that the card is a valid proof of nationality.”

For further information : https://www.traficom.fi/en/transport...nne-en/boaters