Buying an overseas vessel, Registration Questions

[chrisr]

Originally Posted by letsgetsailing3

So it sounds like for my purposes, it may make sense to buy a "VAT paid" boat, register it in a Shengen state, and not be subject to the 18 month or the 3 year rules. This may also help with insuring the boat.

not totally on topic, however you mention insurance

when we purchased our most recent boat we had the option of german, uk or swedish flag. various insurers would only insurer UK flag, some only EU flag. all the EU insurers commented that swedish flag would be lower cost as they have no VAT on insurance. despite this we eventually went with german flag

in passing would mention that we could also have flagged in australia however all insurers said this would be the most expensive option, due to aust regulations

guess where i'm going with this is don't forget to consider your insurance cost when deciding under what flag to register

cheers,

[letsgetsailing3]

Originally Posted by boatman61

If the boat is already EU vat paid when you purchase it, it will maintain that status for as long as it stays in the territories regardless of its flag.
Just make sure you get the written proof when you buy the boat.
If it is UK vat paid you will have to follow the 18mth rule while in EU territories.

So I could flag it U.S.? Or do you mean I would have to flag it E.U., and could I do that as a U.S. citizen?

If I can flag locally, that may work out fine.

[boatman61]

Originally Posted by letsgetsailing3

So I could flag it U.S.? Or do you mean I would have to flag it E.U., and could I do that as a U.S. citizen?

If I can flag locally, that may work out fine.

You could flag it US if you choose to, the flag does not affect vat status.. just be sure to get legal proof of vat paid, receipts etc.
If you choose to flag it EU go Polish for €500+/-

[Montanan]

Originally Posted by letsgetsailing3

My question may have been poorly worded, but I'm not actually confusing anything. I've owned boats, so I know how the U.S. registration and documentation works. I realize there's no VAT there.

I'm asking about maintaining a "VAT paid" status on a boat that I would likely buy and keep in the Med, and may resell there when I no longer need it.

So it sounds like for my purposes, it may make sense to buy a "VAT paid" boat, register it in a Shengen state, and not be subject to the 18 month or the 3 year rules. This may also help with insuring the boat.

I'm just trying to understand the options in a general sense.

Of keen issue as to purchasing a boat and the VAT paid status is which customs territory is the vessel of VAT paid status; specifically, is it of EU paid status or UK paid status.

If you purchase a UK paid status boat and then sail in the EU it will need to follow the 18 month temporary admission, else it will become imported with taxation due.

If your intent will be to resale, it in the Med then I would recommend purchasing a boat with EU paid status as that will provide about 20% value recoupment upon resale. If the boat is not EU paid status, when it is sold to an EU resident it would need to have VAT paid upon title transfer in the EU.

Wishing many bon voyages.

[Kerry TMSL]

Originally Posted by goboatingnow

Polish registration is by far the easiest. No restriction ( generally ) on applicants nationality most country national tegistries have certain limitations based on the nationality or permanent residence status of the applicant. Many US people here in Greece now use the polish tegister. Tne application. can be done on line and is cheap and fast. . Agents are also available if you what detachment from the process or have address issues

Note your stay in the EU will not be determined by your boat registration , having a EU flag helps as it deflects attention.

RE Polish Registration - I have just heard from a boat owner that as his vessel was over 15m the Polish authorities needed to send a surveyor to inspect it for technical and safety reasons (brand new build!) Which I guess is OK if you already in Europe but this one was in SA, a long way from the nearest inspector

[jalmberg]

It’s funny how scams are often more trouble than just doing the right thing.

[fxykty]

Originally Posted by Kerry TMSL

RE Polish Registration - I have just heard from a boat owner that as his vessel was over 15m the Polish authorities needed to send a surveyor to inspect it for technical and safety reasons (brand new build!) Which I guess is OK if you already in Europe but this one was in SA, a long way from the nearest inspector

If it’s like British registration (also needs survey if over 15m) then you just need to find a surveyor who is a member of a recognised society. In our case, they had to be Lloyds members. Surely the Polish registry has a similar requirement? If not, then it’s a no-go for larger yachts that are not near Poland.

Have him look at British registration via Jersey.

[NF13]

Originally Posted by boatman61

If you go the LLC route you may as well choose Delaware or one of the other states that do this and fly your flag with pride.. its a path quite a few Europeans choose to avoid taxes.

Hello Boatman61,
Would you be subject to any US taxes if an EU sold boat is purchased by an US LLC? (This con sidering the boat is not entering the US)
Thank you

[shimari]

Originally Posted by NF13

Hello Boatman61,
Would you be subject to any US taxes if an EU sold boat is purchased by an US LLC? (This con sidering the boat is not entering the US)
Thank you

US taxes are imposed by the state where you register the boat which you will not need to do, and federal import taxes when she's first brought into the US. You will not need to pay either as long as the boat remains outside the US.

[NF13]

Originally Posted by shimari

US taxes are imposed by the state where you register the boat which you will not need to do, and federal import taxes when she's first brought into the US. You will not need to pay either as long as the boat remains outside the US.

Thank you Shimari

[TomCio]

Originally Posted by goboatingnow

Polish registration is by far the easiest. No restriction ( generally ) on applicants nationality most country national tegistries have certain limitations based on the nationality or permanent residence status of the applicant. Many US people here in Greece now use the polish tegister. Tne application. can be done on line and is cheap and fast. . Agents are also available if you what detachment from the process or have address issues

Note your stay in the EU will not be determined by your boat registration , having a EU flag helps as it deflects attention.

That is true unless the boat exceeds 15 m LOH or is used commercially - should any of the two be the case, the annual inspections are obligatory.

The application is online only, but you must be a Polish citizen to go through the process (Polish electronic ID is required), so you will need a local agent.

The documents in English are accepted by the registrar.

Polish registration is really cheap indeed, it costs only 80 PLN regardless of the boat length, value or citizenship of the owner - just to give you the idea about the extent the foreign agents rip you off. Polish registration agents charge much less for their services than the foreign ones.

[TomCio]

Originally Posted by fxykty

If it’s like British registration (also needs survey if over 15m) then you just need to find a surveyor who is a member of a recognised society. In our case, they had to be Lloyds members. Surely the Polish registry has a similar requirement? If not, then it’s a no-go for larger yachts that are not near Poland.

Have him look at British registration via Jersey.

Unfortunately not, yachts over 15 m LOH and the commercial ones must be ANNUALLY inspected by the inspector from Polish Maritime Office or Polish Yachting Association, a foreign surveyor will not do. The armateur covers the travel expenses. They can be shared if you find more Polish flagged boats that need inspection in your area.

[Montanan]

If you are a US citizen, keep this simple and document the boat with the US Coast Guard.

Don't complicate the matter.

https://www.dco.uscg.mil/Our-Organiz...tation-Center/