Story by Andrew Holland / June 27, 2018
Once you have a boat under contract, one of the first questions that you will ask yourself, and one that we most often get here at The Multihull Company is “How should I flag my boat?”
The answer to this question will depend on an assortment of factors in your transaction. Items such as the flag the boat is currently flying, the boats location at closing, nationality of the purchaser, and cruising plans going forward play a vitally important role in determining what flagging option will be best for you.
As an example, if you are a European citizen who is buying a boat in the US, there are advantages for you in keeping the boat under an EU flag if you did not have plans to move the boat back to the EU as you will have the option of clearing the boat out of the US after closing, and then coming back into the US and obtaining a Cruising Permit to cruise the boat without having to pay US Duty and Import tax. You will need to understand though that if you fly an EU flag and then enter into EU waters that you will then immediately be liable for paying the EU VAT on the boat.
Contrarily, if you are a US Citizen who is buying a boat in the EU, there are advantages to US flagging the boat as you will be able to obtain a Cruising permit to cruise in EU Waters for up to 18 months without having to pay the EU VAT on the boat. However, you will need to understand that if you fly a US flag and plan to bring the boat back into US Waters eventually, that you will immediately be liable for paying the US Duty on the boat upon entry.
In short, there is no one clear and best answer for what will be the best flagging option for you upon the completion of your purchase. The best way to answer this question would be to consult with an expert on the details of your particular purchase transaction, discuss your cruising plans going forward so that they can properly advise you on your options.
If you’re left wondering more specifics related to the flagging of your boat, contact us in the form below. We’re happy to give an expert opinion in this often complicated situation.
Also feel free to ask us a question and we may feature it as a Question of the Week!
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Absolutely THE ONLY company to use for buying or selling a catamaran! Our Broker Andrew Hodgdon, was excellent to work with, an experienced catamaran captain with extensive knowledge of sailing catamarans, the ins and outs of the construction, performance, systems, everything involved and life on board catamarans. All of which is invaluable in looking for the right boat for someone to buy or helping market your boat when selling. The Multihull Company is so connected in the catamaran world and used by so many catamaran sailors and searchers that we had an interested buyer before our boat was even listed and a completed sale 60 days after her first showing!!! Thanks Andrew and all of the Multihull team who worked diligently to make it happen so smoothly!
We had a great experience working with Andrew! He was extremely knowledgeable and listened to our needs of what we wanted our next boat to be. He responded quickly to all of our requests and got us to the finish line. Working with Multihull was seamless and we highly recommend using Andrew and Multihull.
Chris Block was our broker. He was great. He went above and beyond what we thought we needed. His expertise helped us get our dream boat for way less than expected. I will use TMC and Chris Block in the future. Definitely recommend.
Chris Rundlett in Grenada was my buyers broker for a catamaran I purchased in Tortola.
The buying process was problematic with numerous mechanical issues needing attention. Throughout the process he was fantastic. I would highly recommend him if you’re looking to buy a boat in the Caribbean.
Successful relationships cannot exist without it. At The Multihull Company we base every relationship on a firm commitment to earning and retaining our client’s trust.
Advice of any kind is valuable only when grounded in hard-won expertise. It too, must be trustworthy. Trust and expertise define the heart and soul of The Multihull Company. We are a team of skilled professionals who thrive on providing expert, trustworthy advice and service to catamaran and trimaran sailors around the globe.
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