Yacht buying in Italy.. Assistance required.

[tinynical]

Good day to all,

I have recently arrived to Germany from New Zealand with the intention of purchasing a yacht and being able to sail around the Med for a year or so. We will then tale the boat back to NZ.

I am a permanent resident in New Zealand and have lived there for 27 years on my British passport. My wife is also a permanent resident in New Zealand and has lived there for over 8 years on her German passport. We both have permanent residence visa's in our passports

I have found a yacht that we both like, located in Italy registered under the Italian flag.

I would like to be able to purchase it "VAT not paid" as we will plan to sail the yacht back to New Zealand.

Does anybody know if I am able to purchase the yacht as being a resident of New Zealand and register the yacht under the New Zealand flag, with my British passport showing my permanent residence visa? I am not a citizen of New Zealand and do not have a NZ passport.

I am getting contradicting answers from brokers in Italy I have spoken with.

Thank you in advance

[boatman61]

I can see no problems as to why you may/can not.. forget about the Italian brokers and contact the NZ Yacht Registration agency.. the brokers likely have not a clue
By rights if you are an NZ resident you are entitled/required to register her there if you intend to take her back there.. they explain the process and supply the needed forms to you.
Then just buy the boat and send off the paperwork as normal.

[JPA Cate]

There is one possible hitch with this, Boatie, and that is that NZ may require the OP to be a citizen to have an NZ registered boat.

That law does exist in Australia, and the PO of our boat was required to de-register it, at some cost, and ourselves, to register it in our country of national origin.

Therefore, he will have to enquire of the NZ authorities to ascertain how it really goes.

Ann

[boatman61]

Originally Posted by Ann T. Cate

There is one possible hitch with this, Boatie, and that is that NZ may require the OP to be a citizen to have an NZ registered boat.

That law does exist in Australia, and the PO of our boat was required to de-register it, at some cost, and ourselves, to register it in our country of national origin.

Therefore, he will have to enquire of the NZ authorities to ascertain how it really goes.

Ann

Hi Ann.. yeah.. that's why I advised him to contact the NZ Yacht Registry direct and forget the brokers.
Legal Residency should be sufficient.. especially having lived there so long and likely a property owner.

[tinynical]

This is an extract from the SR3 form on the maritime NZ website, I have emailed for clarification.

http://www.maritimenz.govt.nz/Public...n/MNZ_Sr03.pdf


"NATIONALITY OF OWNER/S
The nationality of each owner must be shown.
If the owner is a foreign national who is a permanent resident of New Zealand under the Immigration Act 1987, the owner’s nationality and the words “New Zealand resident status” must be shown."

Many thanks for your replies.

Alistair

[tinynical]

I have requested clarification from Maritime NZ, however it does say that it is possible.

http://www.maritimenz.govt.nz/Public...n/MNZ_Sr03.pdf

"NATIONALITY OF OWNER/S
The nationality of each owner must be shown.
If the owner is a foreign national who is a permanent resident of New Zealand under the Immigration Act 1987, the owner’s nationality and the words “New Zealand resident status” must be shown."

Many thanks for the replies

Alistair

[tinynical]

Maritime NZ has confirmed that my wife and I are able to register a yacht under the NZ flag because of our permanent residency.

Thank you all for your assistance.

Alistair

[atoll]

it makes no difference,the country of registration of the vessel,the criteria for EU vat exemption is the owners non resident tax status in the EU,regardless of passport held.

proof of permernent residence outside the EU,and a bank a/c in that country generally will satisfy customs as to the owners tax status

[tinynical]

Yes I am having to provide our Tax status in the country that we reside.

[Kenomac]

You'll need to take delivery of the boat outside the EU if you intend to stay in the Med for a year and not pay the VAT. Montenegro is the logical choice for buying a boat in Italy.

[tinynical]

The boat is located in Pisa, Italy and so the nearest non EU country would be Tunisia.

Thanks

[Kenomac]

Originally Posted by tinynical

The boat is located in Pisa, Italy and so the nearest non EU country would be Tunisia.

Thanks

Most cruisers are not recommending Tunisia unless you go with someone familiar with the area, ports and officials.

[boatman61]

Originally Posted by Kenomac

You'll need to take delivery of the boat outside the EU if you intend to stay in the Med for a year and not pay the VAT. Montenegro is the logical choice for buying a boat in Italy.

I get the impression that this is a secondhand boat.. if a private boat VAT/IVA should already be paid.. if a Corporate or ex-Charter boat I believe he has 18mths before becoming Tax Liable.. just like any other NZ boat as his intention is to export it.
Basing this on other boats bought in the EU by Aussies and others I've worked for.. none were in a rush to get going for tax reasons.

[barnakiel]

A Kiwi does not pay VAT buying a boat in Italy. Applies to boats 'VAT unpaid'.

They will pay their VAT in NZ. If I recall well, GST there.

b.

[grantmc]

Assuming you go ahead with your plan then when the boat is imported into NZ it will be liable to 5% duty and 15% GST. It doesn't matter how the boat arrives in NZ. You'll probably be allowed a concession of the duty portion if you don't sell the boat within 2 years of arrival. But you'll need to check you comply. New Zealand Customs Service : Motor vehicles, boats & aircraft And GST and duty rates can change at any time. I remember Roger Douglas, the then Min of Finance saying GST would always be 10%, yeah right.

But Alistair you might want to review which registry to use.

Some people might consider registering the boat in NZ is a negative. It will mean that for that vessel to leave NZ again (under sail) then it will need to gain a Cat. 1 clearance. That can be expensive, difficult and time consuming. I'm not suggesting anyone would or should skimp on the safety of their vessel; just pointing out the fact.

You would likely qualify to register the boat under the British Small Ships Register, or perhaps the Channel Islands (Jersey) register, plus many others. If registered outside of NZ then the boat's resale value inside NZ would perhaps be higher. It also means it would be much simpler to clear Customs and sail the boat offshore from NZ (irrespective of ownership).

Where to register is a common debate here in NZ. The rules for Cat 1 are set by Yachting NZ and are all based around offshore yacht racing in the cold and stormy seas around NZ. The requirements don't necessarily fit a slow old cruiser sailing up to Tonga for a few months of gunk holing in the sun. So for many people the requirements seem an over kill.

I would encourage you to spend NZ$11.50 and buy a copy of Yachting NZ's Safety Regulations. Here's the link. You'll then be able to spend a few hours deciding yourself whether any boat you might purchase will likely comply. The guide is actually a very comprehensive checklist for an ocean cruiser.

Obviously much depends on the age and type of vessel you end up buying, along with the plans you have for the boat once you get it back to NZ.