Buying Process in Florida - recent purchase

[cooper1991]

I'm flying to Tampa in Florida in May this year. Seems like there's plenty 29-38ft boats on the market but I'm not sure whether covid has made it a sellers market as more people look for freedom?

Are there any people on here that as foreigners to USA have recently bought a boat in Florida and what steps should I be aware of which may vary between obtaining reliable surveyor to paying taxes(?), registering (where?), money laundering restrictions (from overseas sources) or securing a cheap marina for hurricane season?

I've looked at some YT videos but they don't tell full story or are from an overseas buyer's experience.

Any constructive help appreciated.

[Celestialsailor]

"money laundering restrictions (from overseas sources"... Probably not the wisest thing to mention an a forum.

[flightlead404]

Originally Posted by Celestialsailor

"money laundering restrictions (from overseas sources"... Probably not the wisest thing to mention an a forum.

Totally valid question actually. Moving cash through high dollar purchases is a common part of the layering-placement-integration process of money laundering. See Money Laundering, by J Madinger. Good book.

But essentially unless you're showing up with large bundles of cash, there's a presumption that once the $ is in the banking system its "clean". Hence why gov'ts and other organizations are encouraging the demise of cash and feel threatened by decentralized currencies like crypto.

So, other than potentially a short delay in availability of funds recently xferred in, you s/b just fine.

If you need help cleaning some money pm me

[cooper1991]

There are money laundering restrictions and rules that have to be adhered to. When I bought a property in UK the lawyer said that the money had to be in the account for more than 6 months to qualify as good (a money laundering restriction). I also had to explain the source of funds (how I got it) which was another money laundering piece of red tape.

Maybe people aren't aware that worldwide you are beginning to be accountable for every penny This will get worse but hopefully not to the point of money stealing by government (eg Trudeau/Canada).

So I raised this point as I'm unaware of US money laundering regulations and restrictions.

[Wilyum]

I assume your Canadian? There have been many threads on here from Canadians asking what the buying process is in Florida but the replies have had conflicting info. For taxes, I think that Canadians are exempt in the vessel is removed from the state within 90 days, and you can apply for a extension if the boat is undergoing repairs. Once you’ve left the country I am not sure how long until you can return and still be exempt. If your plan is to return to Canada, you will have to pay tax once you enter the country. Registering I believe has to be done in Canada. Take this all with a grain of salt. I will be buying in Florida in the future and have lots of questions too. I wish a Canadian who has just purchased within the last couple years can chime in and outline the entire process from start to finish.

[cooper1991]

I'm actually a Scottish expat living in Bahrain but most Canadians are of Scottish origins anyway so we're on the same team

The challenge I have is that if I buy in May and have the boat in June, it's hurricane season, so the 90 day rule is much too short as (a) the boat may not be up to immediate sailing or (b) getting out the insurance hell zone may not have time.

I'm not sure where I would register. Some people say Delaware, others say it doesn't matter any more.

My plan is to sail down the Caribbean, across to Panama and finish in Philippines (where I'm retiring) by 2024. Circumnavigation is a dream but so is this initial route.

[Montanan]

Being Scottish means you can register the vessel with the UK and flag.

Registration typically is required with the State of the USA in which waters is established as it principal place of use which generally is deemed to become the principal State of use if the boat remains in the State for 90 days.

Just review the registration laws of the State in which your boat resides to determine the procedure, not a big deal.

Sales or use taxation depends on where the vessel is purchased and / or used, so again check the laws of the State in which you make a purchase and or use the vessel.

A vessel that is registered with a State is not flagged by the State that is to say it is not granted USA nationality as to voyaging internationally, hence best to flag your vessel with the country of your nationality, or to chose a country with open registry, i.e., a flag of convenience.

Money transfer should not be an issue, simply wire the funds from your overseas account and pick up a "cashiers check" made out to the seller, or just wire it to the account of an escrow agent that will be handling the financial close transaction to complete the sale.

Of special issue: As a foreign non-immigrant, you will need to obtain a B1/B2 visa for entry to the USA and that will need to be obtained at the USA Embassy in Bahrain so as to be able to enter the USA when you arrive at ports of entry via your private yacht during your voyages in the USA. Obtaining a B1/B2 visa can take a long, long time as to scheduling an interview with the Embassy or consulate offices overseas and as to the administrative processing. Some of the USA Embassies are back logged by over a year to obtain an interview appointment and there is no rushing the system.
As a UK citizen you can enter the USA by common airline carrier using the ESTA and stay for up to 90 days for business or pleasure but then you will need to depart the USA, e.g., return to Bahrain or the UK say to obtain your B1/B2 category of USA visa.

You cannot obtain a B1/B2 visa upon arrival in the USA by entry at an airport by common public carrier. You will need to obtain the visa from the USA Embassy or consulate in the country of your current residence. For Bahrain, the reference links: https://bh.usembassy.gov/visas/

https://www.ustraveldocs.com/bh/index.html

The Consular Section of the U.S. Embassy in Manama is responsible for providing visa services to those seeking to enter the United States for a temporary period and for those wishing to take up indefinite or permanent residence in the United States.

Be sure to obtain a Cruising License from the US Customs and Border Patrol agency when you purchase your boat so as to ease the ability to obtain clearance for departure and enter to each US port.

A cruising license is a permit issued to foreign-flagged pleasure boats from certain countries that have a reciprocal agreement with the U.S. It is issued by the U.S. Customs and Border Protection office at the vessel’s port of U.S. arrival and is normally valid for up to one year.

Reference Link:

https://help.cbp.gov/s/article/Artic...language=en_US

[Rumrace]

I’m Scottish decent happy Canadian and up on tariff tax changes a foot.
If the boat is US made it’s Duty Free. If it’s a European boat 9%
If the boat is imported from Europe to Canada is Tariff free due to free trade with Europe. If it’s US made and going to Europe there was a 25% trade tariff. Kinda ended 5 production lines great boats also.
Provincial tax paid on a used boat in Ontario. I have never met a boater who could find a department to pay the tax if the boat has a number. If you buy through a broker which I recommend they will take care of money concerns and surveyor. There is a surveyors Association licensed everywhere in Florida.
“Hurricane damage repaired to the manufactures specifications “ does that mean the hidden cracked glass under a sanction won’t delaminate the glass?

[Rumrace]

Oh if it’s a Chinese boat coming from the US it’s 25% more expensive than buying it direct from China.

[Montanan]

You be in luck as to the wait time for appointments for applying for a B1/B2 category visa interview at the USA Embassy in Manama. Presently the backlog is only 49 calendar days.

https://travel.state.gov/content/tra...ait-times.html

That is a LOT shorter than most places in the world, must not be a many people wishing to travel from Bahrain to the USA.

[Montanan]

Originally Posted by cooper1991

The challenge I have is that if I buy in May and have the boat in June, it's hurricane season, so the 90 day rule is much too short as (a) the boat may not be up to immediate sailing or (b) getting out the insurance hell zone may not have time.

FYI.

RE: The "hurricane zone".
In the Atlantic, the hurricane belt generally falls between 10° N and 30.5° N latitude and the duration is from June 1 to December 1.

As to the Hurricane Box for insurance policies: Typically, the hurricane zone extends from Cape Hatteras, or from the Florida/Georgia border, to Grenada.

As a yacht owner, should you decide to keep your yacht in the Hurricane box during this time frame, the insurance premium will be higher. The standard deductible may not go up, but if the yacht is located in the box during hurricane season, the named storm deductible could be 15-20% in the event of damage caused by a named storm. Additionally, you will need to submit a Named Storm Plan. See the example below.

Storm Plan for Insurance Company

The vessel will be secured in the following manner:
All bow, stern and spring lines will be fitted with chafe gear, doubled as needed
Roller Furling Genoa will be removed and stored below
Main sail and main sail cover will be storm tied
Any cockpit or helm canvas removed or rolled up and secured
Secure tender, remove outboard engine if possible
All fenders will be deployed, fender boards added if needed.
Batteries will be fully charged
All electric and manual bilge pumps will be tested and operational
All hatches will be secured and locked
All exterior gear removed
All running rigging removed or secured
All helm electronics tested operational and covered
All sea cocks checked for ease of closing if needed
Wooden plugs available for each thru hull fitting.
Fuel tanks checked for sufficient fuel as needed
Engines checked, run, and tested
If generator is fitted, checked, run, and tested
Monitor local and national weather services including VHF, TV, and internet. Keep in touch with other boat owners in the area.
Extra precautionary measures to be taken if yacht is at a private residence:
Double lines secured to two different strong points on yacht and ashore to pilings and/or trees where possible.
Check area for loose items such as patio furniture which could damage yacht.
Lines may be tied across the canal to keep the yacht at least 10’ away from the dock and able to rise and fall with the tide and any surge.
Yacht’s anchor may be deployed if deemed it would be of additional security.

Can some else be responsible for your yacht?

Yes, you may put someone else in charge of preparations. Perhaps you have left your boat in Florida, the Bahamas or Puerto Rico during the hurricane season, but you are not there to prepare for the storm yourself. Your insurance company will require the contact information for the company or person(s) that will be responsible if you are not present to prepare your yacht. You must also keep the insurance company informed of any changes in location, or inform them if you have plans to place your yacht in dry storage rather than at a dock. If on land, they will require specific storage details, such as supports and tie-downs.

[Overdue]

Originally Posted by Celestialsailor

"money laundering restrictions (from overseas sources"... Probably not the wisest thing to mention an a forum.

In the US, there is a requirement that any transaction involving more than $10k in currency requires completion of a CTR (Currency Transaction Report), involving identification of the payor's name/address, the amount of currency, etc. Nothing illegal about using currency in a transaction; the CTR is an information return. As a practical matter, I am not sure many individuals comply, but if you walk into a car or boat dealership with a bag of cash, be prepared for it. I think the CTR compliance was created or enforcement beefed-up in the 1980s, to combat drug trafficking and organized criminal organizations.


There are other "information only" reporting requirements by banks (sometimes unknown to the depositor) if someone makes multiple deposits of currency (even less than $10k) to a personal bank account. Again, nothing illegal about it, but if significant enough, a depositor might be questioned (not by the bank, but by the IRS in an audit) about the source of the currency.


To make matters worse (for some), lawyers are somewhat restricted in their ability to advise; lawyers cannot counsel on how to structure transactions to avoid detection/reporting.

[krid2000]

Originally Posted by cooper1991

Are there any people on here that as foreigners to USA have recently bought a boat in Florida and what steps should I be aware of which may vary between obtaining reliable surveyor to paying taxes(?), registering (where?), money laundering restrictions (from overseas sources) or securing a cheap marina for hurricane season?

If you buy through a broker, in Florida s/he's obliged to work in both parties interest. Ask the broker for recent selling prices off of SoldBoats for the boat model you're interested in.

Get a surveyor from the NAM or SAM organizations. Talk to them on the phone and ask for a sample or recent survery.

You don't have to pay sales tax if you work through a broker and get the boat out of Florida within a certain period of time. The broker can sell you stickers that extend that time up to 180 days for a fee. Remove the boat from Florida and keep it outside Florida for at least 6 months. You need to inform the Florida tax authorities immediately after you have removed the boat.

We've used the broker's escrow account for the transaction. They can receive wires from anywhere.

Get a USCBP cruising license.

Register and document the boat in your country of citizenship.

Get a Ship Station License from your country and reprogram the MMSI in your radio. You might have to take it to a dealer for that.

Get a Restricted Radio Operator Permit from your country.

Download the USCBP ROAM app. You have to report your location through the app every time you move the boat somewhere else. The cruising license does not free you from that requirement.

I hope that helps
Dirk

[flightlead404]

Originally Posted by Overdue

In the US, there is a requirement that any transaction involving more than $10k in currency requires completion of a CTR (Currency Transaction Report), involving identification of the payor's name/address, the amount of currency, etc.

$3k if you use cash to buy a money order

[Sand crab]

Originally Posted by Rumrace

If the boat is US made it’s Duty Free. If it’s a European boat 9%

I'm pretty sure the US duty on European boats is 1.5%. But if the boat is already federally registered in the US (called documentation) the duty should have been paid. South African boats are duty free due to an older trade agreement.
I helped two foreigners buy boats in the US. Both were state registered with no problems and one boat cruised into Canada. We had to undocument a boat (because foreigners can't federally register a boat) which was a process but doable and he was Russian.