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Old 16-07-2020, 23:36   #1
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Country of Registration. Worth it to register foreign?

Hello
Iím buying a cat. I am from the USA. Should I register is I. The USA? Any reason I should consider registering in a foreign country like the BVI?

Thanks!
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Old 17-07-2020, 01:01   #2
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Re: Country of Registration. Worth it to register foreign?

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Originally Posted by Astroman View Post
Hello
Iím buying a cat. I am from the USA. Should I register is I. The USA? Any reason I should consider registering in a foreign country like the BVI?

Thanks!
Are you a charter boat ?

Do you wish to keep the boat permanently in a foreign country ?

The US flag is inexpensive and easy compared to many other flags
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Old 17-07-2020, 04:00   #3
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Re: Country of Registration. Worth it to register foreign?

I am a US citizen and I have had boats with Florida, US Coast Guard, British Virgin Isles and British registrations. Under the various flags I entered over 30 countries.

Only problem I had was under the none US flags I needed a US cruising permit when in the US and I had to leave for two weeks every 12 months before I could renew.
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Old 17-07-2020, 06:44   #4
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Re: Country of Registration. Worth it to register foreign?

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Are you a charter boat ?

Do you wish to keep the boat permanently in a foreign country ?

The US flag is inexpensive and easy compared to many other flags
I will not charter the boat. I plan to leave in November for the Caribbean and then over to the Pacific. I won't be in the USA for more than a few months as I outfit the Boat.
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Old 17-07-2020, 06:49   #5
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Re: Country of Registration. Worth it to register foreign?

If you have a sound reason register elsewhere, then you do.


Nearly all superyachts are registered in places that have nothing to do with their owners' place of residence.



b.
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Old 17-07-2020, 08:12   #6
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Re: Country of Registration. Worth it to register foreign?

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Originally Posted by barnakiel View Post
If you have a sound reason register elsewhere, then you do.


Nearly all superyachts are registered in places that have nothing to do with their owners' place of residence.



b.
So, flag it in another country? What are the benefits?
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Old 17-07-2020, 08:37   #7
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Re: Country of Registration. Worth it to register foreign?

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So, flag it in another country? What are the benefits?
There can be tax benefits (depending on your residency) and / or insurance benefits (e.g. your provider doesn't insure vessels from a specific country).
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Old 17-07-2020, 08:42   #8
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Re: Country of Registration. Worth it to register foreign?

Google your friend.


A non-exclusive brief:


e.g.



- less paperwork,
- lower registration fees,
- longer periods cruising in a specific area,
- lower taxes,
- no taxes,
- etc.


There are many reasons why people do it. Often it is either paperwork (small craft) or taxes (big fish).


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Old 17-07-2020, 08:55   #9
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Re: Country of Registration. Worth it to register foreign?

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So, flag it in another country? What are the benefits?
Depending there may be some tax benefits but you would probably need a tax lawyer to know for sure.

Thing is for a US citizen there are benefits to document the boat with the USCG in case something really goes wrong. In some ways the boat is considered US territory and you have some real protection; of course this can be a con in some places.

One con of a USCG documentation is that the USCG can board your boat and this is not always the case with foreign registration; but there are lots of treaties the US/USCG has with foreign countries that allow them to board.

Another fly in the ointment is that COVID-19 has created some new restrictions on how some places treat/allow entry to US citizens. No one really knows how/when this will shake out.

Bottom line for me is USCG documentation for US citizens, even if they are cruising outside the US, is a no brainer unless your tax attorney suggests something else.
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Old 17-07-2020, 10:14   #10
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Re: Country of Registration. Worth it to register foreign?

Registration is with the owners country of citizenship unless the boat is owned by a company in which case it is where the registered company office is. Some countries do 'sell' registration, flags of convenience, but a very bad idea for yachts.
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Old 17-07-2020, 11:50   #11
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Re: Country of Registration. Worth it to register foreign?

This is a question for your CPA and/or lawyer.

What are you trying to do?
Just want the cheapest option?
Depreciation?
Masking assets..or in this case a liability?
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Old 17-07-2020, 15:34   #12
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Re: Country of Registration. Worth it to register foreign?

Wrong and confusing information abounds in the responses to the poster's central question. Example: The United States Coast Guard and usually United States Navy (with as a USCG officer on board) can board any vessel, flying any flag, for any reason (probable cause not necessary) in US territorial waters, including the US economic zone (generally 200 NM offshore).

The US Coast Guard and US Navy can board any vessel, flying any flag, for any reason on the high seas worldwide. They simply have to contact the country whose flag the vessel is flying and get permission. This they can do in about 30 seconds.

Since the US Navy is a military, rather than a law enforcement agency, the US Navy would normally be prohibited from engaging in this activity due to the Posse Comitatus Law. This is why most Navy warships have a resident US Coast Guard office on board. The USCG is a law enforcement agency (Homeland Security) and as such USCG officers have arrest powers when acting in this capacity.

And don't try to fly a false flag. If caught at this you will have your boat confiscated and you will do serious jail time, but maybe not in a US jail but one in the foreign country whose flag you flew but were not authorized to fly.
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Old 17-07-2020, 15:54   #13
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Re: Country of Registration. Worth it to register foreign?

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Originally Posted by jmschmidt View Post
Wrong and confusing information abounds in the responses to the poster's central question. Example: The United States Coast Guard and usually United States Navy (with as a USCG officer on board) can board any vessel, flying any flag, for any reason (probable cause not necessary) in US territorial waters, including the US economic zone (generally 200 NM offshore).

The US Coast Guard and US Navy can board any vessel, flying any flag, for any reason on the high seas worldwide. They simply have to contact the country whose flag the vessel is flying and get permission. This they can do in about 30 seconds.

Since the US Navy is a military, rather than a law enforcement agency, the US Navy would normally be prohibited from engaging in this activity due to the Posse Comitatus Law. This is why most Navy warships have a resident US Coast Guard office on board. The USCG is a law enforcement agency (Homeland Security) and as such USCG officers have arrest powers when acting in this capacity.

And don't try to fly a false flag. If caught at this you will have your boat confiscated and you will do serious jail time, but maybe not in a US jail but one in the foreign country whose flag you flew but were not authorized to fly.
Not seeing where anyone said non US registered boats can’t be victim to nonsense searches

Shame these loopholes in 4a are not remedied, same with searching vehicles 100mi (I think) from a border.

Quote:
Originally Posted by tomfl View Post
Depending there may be some tax benefits but you would probably need a tax lawyer to know for sure.

Thing is for a US citizen there are benefits to document the boat with the USCG in case something really goes wrong. In some ways the boat is considered US territory and you have some real protection; of course this can be a con in some places.

One con of a USCG documentation is that the USCG can board your boat and this is not always the case with foreign registration; but there are lots of treaties the US/USCG has with foreign countries that allow them to board.

Another fly in the ointment is that COVID-19 has created some new restrictions on how some places treat/allow entry to US citizens. No one really knows how/when this will shake out.

Bottom line for me is USCG documentation for US citizens, even if they are cruising outside the US, is a no brainer unless your tax attorney suggests something else.

So I have yet to have anyone tell me how a situation would have been better for a US citizen if only their, say Amel, had been USCG vs WY state registration, or a foreign registration/documentation
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Old 17-07-2020, 16:00   #14
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Re: Country of Registration. Worth it to register foreign?

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Registration is with the owners country of citizenship unless the boat is owned by a company in which case it is where the registered company office is. Some countries do 'sell' registration, flags of convenience, but a very bad idea for yachts.
Not quite. It's not country of citizenship but country of residence. I can register in the UK if I have a UK address. Same in France, Spain and most countries.
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Old 17-07-2020, 16:04   #15
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Re: Country of Registration. Worth it to register foreign?

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Not quite. It's not country of citizenship but country of residence. I can register in the UK if I have a UK address. Same in France, Spain and most countries.
Pretty sure for USCG you need to be a US citizen, mines under my company and the USCG was annoyingly interested in the company being owned by US citizens.
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