Purchasing a yacht is a form of international investment and is different from buying a car or a house. The country in which you are registering your
Purchasing a yacht is a form of international investment and is different from buying a car or a house. The country in which you are registering your yacht has a great impact on the amount of money you will be investing, as well as your freedom of travel. Your choice of country for yacht registration has a great effect on the privacy, taxes and your exposure to liability. This is why choosing the right country is important when it comes to yacht registration.
You should consider this process as much as other corporate measures to protect your assets. This is the reason why thousands of yacht owners consider registering their boats in places like the Cayman Islands so they can avoid the burdensome taxes and the various rules and regulation in the US. It is interesting to know that Panama is the largest ship registry in the world and boasts around 9,000 ships bearing its flag. Several countries that offer attractive tax structures may require you to deal with other issues, such as a law that requires you to hire a crew comprising of local nationals.
Finding the right country for registering your yacht depends on what you are looking for in terms of ease of travel, naval protection and taxes. Here are 4 the best countries that you can consider for yacht registration. This is a crucial decision as once it is registered in a country, it will be subjected to all laws pertaining to the regulations in that particular country.
The oldest democracy in Africa, Liberia is one of the first offshore and zero tax jurisdictions. This makes the Liberian registry one of the best and the second largest registry in the world. It is ‘white-listed’ by the Paris MoU and has almost 11 % of the globally registered population of ships.
There is a reason why yacht registration in the Marshall Islands is the third highest in the world. The tax is low and the registry is recognized globally. Marshall Islands is a presidential republic in free association with the US and offers the same benefits as its British Overseas Territory counterparts. The registration process is streamlined and quick and does not have any restrictions on the country of construction or the nationality of your crew.
Yachts registered in the Cayman Islands enjoy exclusive privileges of the British flag and observe the tax-free benefits and confidentiality perks of the Cayman Islands. Other offshore choices for flying under the red ensign are Bermuda, the Isle of Man, Jersey, Anguilla, Gibraltar and the British Virgin Islands, along with the Cayman Islands
One of the largest islands in the world and the largest in Europe, The Maltese registry details clear laws pertaining to yacht mortgages and affordable yacht registration costs. The rules are compliant with the EU legislation and are respected across the globe. Companies that operate commercial yachts out of Malta are not liable to pay income tax. They are also exempted from any kind of VAT tax on the high seas.
These are the 4 best countries you can get your yacht registered in. Of course, feel free to do your research and find out about any other country where you want to register your yacht. The important thing is the process should be convenient for you.