Moving boat to BVI

[msdj69]

I’m hopeful some of you experts can help me with some questions. I’m in the process of purchasing a sailboat in the Dominican Republic with a partner. We’ve both have owned several boats in the states and sailed all over the Caribbean but we have no ownership experience outside the US.

Our intention is to do some work on the vessel this spring and summer and move the boat to the BVI late fall. We’re paying cash for the boat, so no lien. She’s currently USCG documented and registered in a state. I have a quote for insurance to cover us in these areas.

We have no intentions of moving the boat back to the states. She will live in the DR and BVI as long as we own her.

So here are my questions:

Since we’re not bringing her to the states, do we need to maintain USCG documentation?

Do we need to register her in a state? We plan to own the vessel under an LLC, so that may weigh into it. If there’s a better route than an LLC, I’m open to it.

How do we handle taxes? Since we’re paying cash in a foreign country and not bringing her to the US, we’re just not sure how to handle taxes (if at all).

For long term storage in the DR and BVI, how do we deal with that? Do we need to register her in either or both countries? Neither of us plan to be down there for long periods of time so immigration isn’t an issue.

I’m sure I’ll have other questions but this is a good start.

And for the record, I’m not trying to avoid taxes or registrations. I just don’t want to do or pay more than necessary.

Thanks much for your time.

[Zanshin]

I'll answer one part of your questions which I know - if you intend to keep your boat in the BVI for a significant period of time, you will need to do a "temporary import" of the vessel which is valid for 1 year. You used to be able to fill the form out at the C&I offices, but now it needs to be done in an office in Road Town. The cost depends upon boat size and has gone up recently, I paid $250 to have the boatyard at Nanny Cay do it for me this year (part of that cost is their processing fee). This was for a 57 foot boat.

You can re-flag her to the BVI, but you would need to set up an IBC in the BVI in order to do that, which will cost around $1000 per year. Alternatively you can re-flag under a flag-of-convenience and the red ensign countries are quite good and inexpensive if keeping the U.S. registration is not an option.

Keep in mind that facilities in the BVI are still limited and due to the extensive damage caused by hurricane Irma it will take some time to return to what it used to be. Storage in the BVI is expensive and I think that Nanny Cay is the only functioning yard at present.

[msdj69]

That is exactly what I’m looking for. Thanks so much for the intel. Much appreciated.

[InTheDish]

Follow.

[captainjay]

As Americans I would maintain the US Documentation. You might want to consider leaving it in St Thomas and sailing to the BVI's etc while you are here. You will have better access to flights for less money. It is easier to ship things here and provisioning is cheaper. It is a short sail to St John and the BVI's. It is also an easy run to Culebra in the Spanish Virgins. Lots of fleixibility.

Have a plan and a reservation for Hurricane storage before you come. Virgin Gorda, Nanny Cay or Puerto Del Ray in Puerto Rico are your best options for that. You can get a USVI registration as weel as documentation. No taxes about $100 a year for the boat and tender.

[msdj69]

Thanks Jay. Great advice about STT.

[dougweibel]

An answer for another bit of your question is that if you maintain the USCG documentation you do not need to register it in a state. Some states do have a requirement that you purchase a sticker of some sort if you will be in that state's waters for longer then some period (e.g. 6 months) but it is different than registering the boat in that state.

[msdj69]

Originally Posted by dougweibel

An answer for another bit of your question is that if you maintain the USCG documentation you do not need to register it in a state. Some states do have a requirement that you purchase a sticker of some sort if you will be in that state's waters for longer then some period (e.g. 6 months) but it is different than registering the boat in that state.

That's what I hoped. Thanks for the validation.

[travellerw]

Now I could be wrong here as I'm not American.. BUT.. I'm pretty sure if you maintain American registration and you are an American, then there could be tax implications if you stop in Puerto Rico, Spanish Virgins or US Virgins.

The husband and wife from "Monday Never" learned this when the entered Puerto Rico with a boat they bought down the island chain. They had to pay duty upon checkin to Puerto Rico.

Since those islands are between DR and BVI, I'm giving a high chance you will stop there sometime in the future. Of course, that wouldn't apply if the boat was built in USA, Canada or Mexico (under the current free trade agreement). In any case, I suggest you do your research here as it would suck to be handed a multi thousand dollar bill upon checkin somewhere.

[msdj69]

Originally Posted by travellerw

Now I could be wrong here as I'm not American.. BUT.. I'm pretty sure if you maintain American registration and you are an American, then there could be tax implications if you stop in Puerto Rico, Spanish Virgins or US Virgins.

The husband and wife from "Monday Never" learned this when the entered Puerto Rico with a boat they bought down the island chain. They had to pay duty upon checkin to Puerto Rico.

Since those islands are between DR and BVI, I'm giving a high chance you will stop there sometime in the future. Of course, that wouldn't apply if the boat was built in USA, Canada or Mexico (under the current free trade agreement). In any case, I suggest you do your research here as it would suck to be handed a multi thousand dollar bill upon checkin somewhere.

That's definitely worth some research. Does anybody else have experience with this situation?

[captainjay]

Originally Posted by msdj69

That's definitely worth some research. Does anybody else have experience with this situation?

If the boat is already registered in a state then any duty has been paid for import. Puerto Rico does have some tax for registration if you stay more than sixty days. The Spanish Virgins are Puerto Rico. USVI has no tax. We have a simple local registration that they want if you are here for an extended period of time This is loosely enforced on US flagged federally documented boats. The registration is around $100 a year.

Jay

[travellerw]

My understanding (from my American friends) is exactly as Captain Jay spells out.

- If the boat has never been imported into the USA and was built outside a free trade zone, then you owe Federal duties the moment you enter USA controlled waters. No matter how old the boat is, or how many times it has been sold. If the duty has never been paid, then its owed. Technically, if you never "check-in" to American waters then you will never pay the duties.

This is pretty identicle to the Canadian rules. However us Canadian don't have any remote territories so its much easier to avoid paying for us.

[msdj69]

We closed on her last week. She is USCG documented but will not be registered in a state.

So it sounds like there's a possibility I may have to pay duty when I enter PR or the USVI. I've cleared through a couple times on charter boats and I don't recall this ever being addressed with an agent. Do they really check this? Is there any way to avoid it?