International Private Party Sale

[unbusted67]

Am I crazy to even think it could happen? The boat is a European boat being sold in the Caribbean, I’m from the states, boat and owner are from Spain, no broker involved.

Would I keep the boat flagged in Spain if I wanted to keep the boat in Caribbean and not bring it back to states to avoid import duties etc? Do I pay VAT?

How would I avoid all of the risks of getting ripped off during the process of purchase/survey?

[PippaB]

Do you pay VAT (or other taxes)? - Depends entirely on the exact locale where the sale/transfer takes place. Nothing to do with either flag state or your citizenship/residency, it is all about the rules where the sale happens.

Unless you can convince the owner to go all the way through sea trials and survey with no money down you should find an escrow service to handle the money. Again, all depends on locale. If the owner is willing to get to the end with no money having changed hands, and you are happy with all survey results then you just pay at the end.

Are you able to keep it flagged in Spain? Don't know the rules on that one, but if you are a US citizen no reason you can't flag and document the boat with the USCG where it is. If you use the simplified measurement rule for recreational vessels the boat never has to be in the States, or even looked at by anyone official, you just fill out the paperwork and send it in with your check. You will need a little research on whether Spanish registration conveys title, because you will need positive proof of ownership. And you would need the help of the current owner to convey the title and remove from Spanish registry, proof of which will all have to go to the USCG - properly notarized - give the CG a call to get the lowdown, or (shudder) hire a documentation agency to make sure all the t's are crossed.

Duties and US taxes (if any) would only be owed when you bring the boat back to the States. You can even enter USVI without paying those - it is outside the Customs Territory of the US. Puerto Rico, on the other hand, is not, and duties (if any) would be owed when you enter PR. Duty is low, generally 1.5%, although it does depend on some specifics.

FWIW I have purchased two boats overseas, and imported one of them. Not much different than doing it locally, except that you have to learn the rules of the place where you will be doing business. "The Caribbean" is insufficient to provide any more detailed answers - there are 16 sovereign nations and 12 territorial dependencies in the Caribbean, and each has its own set of rules. If the boat is in the water and the owner is willing to move it then you can shop your location for the sale to find the easiest/cheapest process.

[unbusted67]

Originally Posted by PippaB

Do you pay VAT (or other taxes)? - Depends entirely on the exact locale where the sale/transfer takes place. Nothing to do with either flag state or your citizenship/residency, it is all about the rules where the sale happens.

Unless you can convince the owner to go all the way through sea trials and survey with no money down you should find an escrow service to handle the money. Again, all depends on locale. If the owner is willing to get to the end with no money having changed hands, and you are happy with all survey results then you just pay at the end.

Are you able to keep it flagged in Spain? Don't know the rules on that one, but if you are a US citizen no reason you can't flag and document the boat with the USCG where it is. If you use the simplified measurement rule for recreational vessels the boat never has to be in the States, or even looked at by anyone official, you just fill out the paperwork and send it in with your check. You will need a little research on whether Spanish registration conveys title, because you will need positive proof of ownership. And you would need the help of the current owner to convey the title and remove from Spanish registry, proof of which will all have to go to the USCG - properly notarized - give the CG a call to get the lowdown, or (shudder) hire a documentation agency to make sure all the t's are crossed.

Duties and US taxes (if any) would only be owed when you bring the boat back to the States. You can even enter USVI without paying those - it is outside the Customs Territory of the US. Puerto Rico, on the other hand, is not, and duties (if any) would be owed when you enter PR. Duty is low, generally 1.5%, although it does depend on some specifics.

FWIW I have purchased two boats overseas, and imported one of them. Not much different than doing it locally, except that you have to learn the rules of the place where you will be doing business. "The Caribbean" is insufficient to provide any more detailed answers - there are 16 sovereign nations and 12 territorial dependencies in the Caribbean, and each has its own set of rules. If the boat is in the water and the owner is willing to move it then you can shop your location for the sale to find the easiest/cheapest process.

Wow, thanks so much.

[grantmc]

We're just idiots on the internet freely responding to a random series of somewhat vague questions by the OP. So take our advice at that value.

First there's nothing specific about the size/tonnage of the vessel, nor whether for commercial or pleasure, nor qualifications of the prospective new owner. These are often fundamental in respect to registration and insurance (anywhere).

Here is a link to a reasonably good FAQ about Spanish registration. Be warned that the Spanish registry may have a list of accredited surveyors. And that might be difficult to achieve outside of Spanish territory.

Buying a boat with the scenario described is fraught with potential issues and requires trust from both parties. One party might loose a boat and the other their money.

I bought a boat in a somewhat similar scenario. Owners EU citizens, boat registered in an EU country, boat in a foreign land, and I a citizen of NZ. But the sale all went fine.

BUT! I thought that the existing registration could be either transferred to myself, or I could (easily) transfer registration to another country's registry. With my citizenship I was prohibited from just transferring the existing registration.

An so the second option. That brings up a whole range of options, where to register? And I suspect you'll be researching old threads about different registries in due course.

But beware, what you're possibly about to undertake does have hooks and much care is needed.

[boatman61]

Bought a French boat in St Marten.. no VAT as it was a secondhand boat.
Removal from French register took 3mths, snail mail to Brest and back otherwise no problems. UK SSR Registered
Suggest you follow USCG registration as suggested above as you'll pay no tax till you enter the country.
No way to transfer Spanish reg nor get it as your not a citizen.