Buying an EU boat - registration/tax/other issues

[Endless time]

I have read a lot of threads on boat buying and registering (at least it seems so) and have not found answers to my below questions, or did not understand what I was reading perhaps. In any case I have a few questions/scenarios that I would appreciate some information on. So here goes.

We are Americans and currently live in the US. Once we have the boat we don't intend to live in the US while we own and sail it. We have seen several boats in the EU which are interesting and we are curious about what we are allowed to do if we purchase one there. Can we just leave it registered there? The boats we have looked at had their VAT paid. Can an American who is not an EU resident sail an EU registered boat? Our basic intentions, once we are on the boat, is not to spend much time at all in the US. Our preferred cruising/sailing locations are not US oriented. We 'might' stop by a US port for resupply on our way from the Caribbean to Europe, or visit Puerto Rico/USVI at times. But other than that the boat would not be spending time in the US. We are currently interested in spending time along the coasts of Europe from north around to and through the Med over a period of several years - and winter in the Caribbean. So we would return to the EU regularly if there are time limit issues. And if there are time limit issues what are they?

I can fill in details or answer questions to help figure our situation out but I need questions if the above is not enough. And thanks for your input.

[Andrewpatrol]

Look up Schengen treaty. It’ll put a dampener on your plans. Sorry

[goboatingnow]

[QUOTE=Endless time;3568230]I have read a lot of threads on boat buying and registering (at least it seems so) and have not found answers to my below questions, or did not understand what I was reading perhaps. In any case I have a few questions/scenarios that I would appreciate some information on. So here goes.



We are Americans and currently live in the US. Once we have the boat we don't intend to live in the US while we own and sail it. We have seen several boats in the EU which are interesting and we are curious about what we are allowed to do if we purchase one there. Can we just leave it registered there? The boats we have looked at had their VAT paid.

Can an American who is not an EU resident sail an EU registered boat?

Yes of course

Our basic intentions, once we are on the boat, is not to spend much time at all in the US. Our preferred cruising/sailing locations are not US oriented. We 'might' stop by a US port for resupply on our way from the Caribbean to Europe, or visit Puerto Rico/USVI at times. But other than that the boat would not be spending time in the US. We are currently interested in spending time along the coasts of Europe from north around to and through the Med over a period of several years - and winter in the Caribbean. So we would return to the EU regularly if there are time limit issues. And if there are time limit issues what are they?

With a vat paid boat , if you sail out of EU waters it’s deemed exported but you are allowed three years relief before vat is due , hence once you return within that period the boat will not loose its vat status. In theory you can agree with customs to gain a longer period without incurring vat.

But the practical reality is no one will check where the boat has been, so customs have no formal way to verify where the boat was and will not bother once you retain the original proof of eu vat.

Hence the boat can largely come and go as it pleases.

You , as non EU citizens, are subject that the visa waiver conditions which is 90 days out of a rolling 180 , hence approx 6 months can be spent in two tranches within the EU within a 12 month period. ( the rule is to count back 180 days on exit and the time within the EU must not exceed 90 within that period )



So the practical answer is once you retain the documentation showing proof of vat paid , the boat can come and go as it’s likes there are no real practical limits on the time frame. Unlike the US , the EU tends to be quite informal about yachts coming and going once the crew are abiding by the appropriate visitors rules. Once within the Schengen area no further checkins are technically necessary and in practice few marina orientated ports have immigration facilities anyway.

[Endless time]

gbn, Thanks.

Your post confirms what I had been able to discover from my readings. So I think I am on the right track and understand the requirements as they apply .

Another question. Do EU countries (given the scenario I am looking at) have yearly registration fees/taxes which need to be paid on yachts (sort of like what we in the US call property taxes)? Or some kind of license fee (like our US license plate fees)? I am basically trying to figure out all the costs one routinely incurs from owning a boat in the EU so I can compare it with the US. Sort of balancing money costs with bureaucracy costs to see if just leaving the boat registered in the EU is the simpler move. Lastly on the EU end of things we are assuming that when/if we were going to sell the boat we would sell it where we bought it. Anything you can add will be appreciated.

And if someone reading knows, or can point me to text regarding, the issues of me sailing into a US port for supplies for a few days while being a US citizen and sailing an EU boat. This would also be an important consideration in determining the viability of this idea.

[Dogscout]

I am a US citizen and I live aboard my US flagged boat in the Med for most of the year. I have done a full year but chose to come back on occasion to put more gold in the box.
I bought a Malta flagged VAT paid boat in Malta. You can register your boat in the EU but you will likely have to have an EU tax number. I believe that this can be done by setting up a corporation. I chose to Document my boat with the USCG so I had to have the Maltese registration canceled then have the boat US documented. All done very easily. I have not registered my boat in any US state. I dont have a US residence.
Do not worry about the Schengen game, go to Albania or Tunisia or Croatia or Montenegro, or Cyprus, or Turkey. You will see many many boats all over the Med with US flags and home port of Delaware. This is a BS tax dodge but hey its funny to watch. You will also see many US flagged boats in the Med with US citizens and lots of different home ports. Be careful of Greece with the Tepai they want to know where your boat is at all times. I had to argue and show proof that my boat was VAT paid in the EU and they still wanted to charge me Greek VAT.

Insurance maybe you biggest hassle. American companies do not want to insure in the EU and EU companies that will insure an American can be hard to find.

Sorry I dont have an answer on arriving in the Caribbean or a US port. I have not done that yet. I expect that at some point if I ever return to the US, then I will have to import the boat and pay 5% duty.

[Endless time]

Hi DS. Thanks.

I am strictly learning here so I may be wrong on many items.

However I have read that the yacht import duty to the US is not 5% but rather 1.5%. Here is a link to that:

https://cbpcomplaints.cbp.gov/s/arti...rm%203520%2D21.

Re: entering the US temporarily. I have read that a foreign registered yacht is issued a US cruising permit that is good for 1 year. I cannot find any info that this is affected by the citizenship of the owner. This is my question for my scenario.

Regarding the need for a EU tax number to register a boat in the EU I just came across the below link regarding a Polish registration which states that they will register and flag a boat for a non-EU passport holder directly in the owners name (for 575 euros). It does not mention the need for a tax number.

https://yachtregistration.navy/?gcli...YaAi1iEALw_wcB

Comments, corrections, omissions, misunderstandings?

[Dogscout]

Originally Posted by Endless time

Hi DS. Thanks.

I am strictly learning here so I may be wrong on many items.

However I have read that the yacht import duty to the US is not 5% but rather 1.5%. Here is a link to that:

https://cbpcomplaints.cbp.gov/s/arti...rm%203520%2D21.

Re: entering the US temporarily. I have read that a foreign registered yacht is issued a US cruising permit that is good for 1 year. I cannot find any info that this is affected by the citizenship of the owner. This is my question for my scenario.

Regarding the need for a EU tax number to register a boat in the EU I just came across the below link regarding a Polish registration which states that they will register and flag a boat for a non-EU passport holder directly in the owners name (for 575 euros). It does not mention the need for a tax number.

https://yachtregistration.navy/?gcli...YaAi1iEALw_wcB

Comments, corrections, omissions, misunderstandings?

My bad, you are correct its 1.5% I messed up. I am also interested in what you find out about passing through the US. whether its USVI, PR or Mainland. I expect to one day cross from the Med to the US for a season then either Atlantic loop or head to Panama.

[Pete7]

Originally Posted by Dogscout

Do not worry about the Schengen game, go to Albania or Tunisia or Croatia or Montenegro, or Cyprus, or Turkey.

You missed the UK, we give those from the colonies another option and allow 6 months to recharge your batteries before entering the Schengen again. Oh and we speak the same language, mostly

Pete

[Montanan]

It the vessel that you purchase is EU tax paid status then it will be free to circulate in the EU.

When you import the boat into the USA, a minor 1.5% duty will be due upon entry. The USVI is excluded from the USA customs territory, but Puerto Rico and the States are within the USA customs territory.

You as Americans will be restricted to being in the EU / Schengen territory up to a cumulative total of 90 days within any rolling 180-day period.

Plan accordingly.

The EU VAT paid status vessel may remain in the EU / Schengen, but you will need to depart and not return until the cumulative days in the territory are less than the 90 days in the rolling 180 day period. Makes for shortened voyage plans and the need to make arrangments for storage and maintenance of your vessel while you remain out of the EU/Schengen.

You are an American so it is a simple matter to have your vessel documented by the USCG and thus be able to wear the flag of the USA on your vessel and for the vessel granted to having USA nationality.

Alternatively, you could pursue a flag of convenience with a country that has "open" vessel registries, but there would be no advantage to pursuing such foreign flag state over having the boat documented by the USCG and the foreign flag state vessel would become subject to custom's clearances if and when it entered the USA and need to be cleared before departure and entry into each USA port.

"foreign-flagged boats may need to contact the USCG and, unless they have a cruising license, go through formal entry and clearance procedures with CBP at each port of entry.
Formal Entry of Foreign Yachts

Within 48 hours of arrival at the first port of entry, foreign boats without cruising licenses need to go through formal entry procedures with the Marine Section of CBP. The Miami office is open Mondays through Fridays between 7 a.m. and 3 p.m. It is important to arrive during office hours to avoid missing the 48-hour formal entry window. If you have questions about formal entry, you can reach the CBP Miami Marine Section at 305-536-4758.

Step 5—Formal Clearance of Foreign Yachts

The CBP Marine Section that processed the formal entry must also clear the boat before it may leave its jurisdiction. The captain has to contact CBP 48 hours before departure to complete clearance documents and must pay a small fee. Unless the yacht has a cruising license, it has to go through formal entry and exit procedures whenever it departs the U.S. or travels coastwise.

Exception to Formal Entry and Clearance—Cruising License

A cruising license exempts foreign-flagged yachts from certain countries from formal entry and clearance procedures. Yachts registered in the British Virgin Islands, Cayman Islands, Bahamas, Jamaica, and Marshall Islands qualify. For a complete list of covered countries, Google “19 CFR § 4.94.”

The cruising license may be obtained at the first port of entry to the U.S. from the CBP Marine Section. The permit is issued for up to one year but expires upon selling the boat. Cruising licenses are non-transferable between owners, and a new owner must return the old permit and obtain a new one from CBP. A customs broker can help you obtain a cruising license.

This permit exempts the vessel from formal entry and clearance procedures , but not from CBP or USCG reporting and immigration requirements. The captain also still must report coastwise movement to CBP, but not departures from the United States. If cruising to a port within Florida, call the CBP’s Small Vessel Call Center at 1-800- 432-1216. Contact numbers for other reporting locations are on the CBP website.

[celle2000]

You’ve already gotten some good answers – basically you and the boat are separate issues – if you are not an EU citizen and just a visitor – then you can stay max 90 days out of any 180,

The boat - if EU VAT paid is not so restricted – and if not EU paid then the boat should not be in EU waters more than 18 months at a time. And if you are an EU citizen or EU resident, then you do not have 18 months in EU waters VAT free – rather you should pay VAT immediately.

Also remember that Britain is no longer in the EU.

It used to be that a non-EU citizen could not directly have an EU flagged boat but could own through a local company (shell corporation).

This has changed and a non-citizen can register and flag the boat in Poland which is in the EU for a one time lifetime registration fee – and if you do not already have MMSI or radio registration etc they can arrange that as well. It is done online, requires only scanned copies of the documentation, and requires no boat survey. The price includes any translation needed. The provide provisional documentation in a couple of days and courier you the official registration documents – no extra fee. Then your home port is either Gdynia or Gdansk and you can buy a Polish flag on Amazon and set sail. Of course rules can change anytime and officials in any given country can interpret to suit themselves.

[TomCio]

Croatia also imposes tourist tax and they are very strict about it.

Watch out not to exceed the total of 182 days in a given calendar year when sailing in Spain as you would automatically become the resident of Spain in all aspects, your boat 18% matriculation taxed over its market value (independent of VAT, clearly against EU rules and now under the scrutiny of the European Commission, but for the time being still in place), and your sailors patents made void - the penalty for sailing without the proper (Spanish) licence is the confiscation of the boat (!).

[goboatingnow]

To my knowledge only Greece and Croatia have cruising taxes. Spain has the matriculation tax issue but that only affects spainish residents.

Greece is fairly relaxed about the TEPAI , the cruising tax. If you lay your boat up you can simply desist from paying it. The port office are not to worried about that aspect.

While you are supposed to pay tHE TEPAI in advance , I pay online , I have never been asked for it. But it’s not expensive.

There is in general no “ property “ style taxes associated with boats in the EU

Welcome to the world centre for sailing. Don’t fret the paperwork. Mind you entry visa dates , it’s all quite informal ( which shouldn’t be interpreted as either a “ chancers “ charter or viewed as nobody cares. Of course the odd “ rules merchant “ official always exists but smile and be nice. ( avoid the call my lawyers diatribe )

[goboatingnow]

Originally Posted by celle2000

You’ve already gotten some good answers – basically you and the boat are separate issues – if you are not an EU citizen and just a visitor – then you can stay max 90 days out of any 180,

The boat - if EU VAT paid is not so restricted – and if not EU paid then the boat should not be in EU waters more than 18 months at a time. And if you are an EU citizen or EU resident, then you do not have 18 months in EU waters VAT free – rather you should pay VAT immediately.

Also remember that Britain is no longer in the EU.

It used to be that a non-EU citizen could not directly have an EU flagged boat but could own through a local company (shell corporation).

This has changed and a non-citizen can register and flag the boat in Poland which is in the EU for a one time lifetime registration fee – and if you do not already have MMSI or radio registration etc they can arrange that as well. It is done online, requires only scanned copies of the documentation, and requires no boat survey. The price includes any translation needed. The provide provisional documentation in a couple of days and courier you the official registration documents – no extra fee. Then your home port is either Gdynia or Gdansk and you can buy a Polish flag on Amazon and set sail. Of course rules can change anytime and officials in any given country can interpret to suit themselves.

Polish registration directly with the authorities is very cheap , but you need to be able to read and write polish and need a polish accommodation address.

Hence there are registration agencies that charge about €400-600 that sort out those issues.

They will also get you a ships radio license which will give you an MMSI and ships radio call sign. You need these for epirb registration. ( which again is done in Poland )

Your MMSI and ships radio call sign will and should follow your flag registration Nationality

Other national flag registrations are more complex or Byzantine ( Ireland really missed a trick in reforming its antiquated registry to accommodate a flood of post Brexit registrations ) .

[goboatingnow]

Originally Posted by celle2000

It used to be that a non-EU citizen could not directly have an EU flagged boat but could own through a local company (shell corporation).

This remains the case for most EU flag registries. Typically they allow EEFTA nationalities only. Some only allow their national residents to register.

The unusual situation is the polish one. They changed the rules radically recently . I know there is some disquiet in the eu. ( I have a daughter in Brussels ) that the polish registry could be a soft touch for vat dodging , so undoubtably Poland will be “leaned upon” to ensure this Is not so.

In my view it’s time to set up a simple and Eu wide pleasure vessels register for eu nationals.

[davil]

following this thread with interest.

On a very simple view and only for ECC countries.

I realize countries outside the Common Market have their own rules and can find the info online

If I sail to Europe and sell my boat, as used/second hand boat in an EEC area will not require paying VAT ?
If so, the only expenses will be to the broker?