These jurisdictions are favored for their tax rates, ease of administration, favorable local corporate tax laws, and adherence to the Paris Memorandum of Understanding on Port State Control (Paris MoU). These nations are Bermuda, Gibraltar, Jersey, Guernsey, Turks and Caicos, Isle of Man, British Virgin Islands and the Cayman Islands.
#Private vessel meaning registration#
Due to this, most US and EU yacht owners prefer to register their yachts under jurisdictions that have streamlined taxation and registration procedures and lower tax rates, and also allow for multiple registrations of vessel names and owner anonymity.īritish Commonwealth or “Red Ensign” nations are among the most popular flags for yacht registration. The flag nation also determines under whose laws and jurisdiction the vessel operates (local port state laws may also apply). The flag of the vessel determines who is responsible for regulating and inspecting the vessel. Most US and EU yacht owners choose to register their vessels under foreign flags. The Foreign Flag - What it means for your yacht registration But if you’re planning to cruise outside of the aforementioned areas, the benefits to a foreign flag may outweigh your patriotic leanings. If your yacht clocks in at less than 300 Gross Tons (a measurement based on interior volume, not weight), obtaining a US flag is fast and easy, particularly for yachts staying in US waters or cruising The Bahamas or Caribbean it also is patriotic and cheaper for US-built yachts. That being said, there are some benefits to the US flag. Registering your yacht in a non-US jurisdiction can be part of the solution. If you choose to charter out your yacht, this may complicate matters further as chartering means the yacht is under commercial vessel regulations the rules of many ports demand different standards between private and commercial.įor the American yacht owner, there may be a sense of pride to fly Old Glory off the aft of the yacht, but US vessel documentation can cause some issues.
Many European nations, and the United States, have onerous and labyrinthine maritime laws and codes. Your choice of flag may affect the taxes you pay regarding the purchase and operation of your yacht, how your yacht is crewed, where it may sail and how often authorities may board and inspect your yacht. Your choice of flag state, the nation where your yacht is registered one of the most important decisions you will make as a yacht owner. If you’re considering purchasing a yacht, there’s a lot more to contemplate than simply where you’ll be cruising.
0 kommentar(er)
