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!
Great Service, Great People
Helped me through the process.
I would go through them again in a future purchase.
The Multihull Company made the process of buying our boat easy and predictable. Both our agent (Francisco Montaner) and Andrew Holland communicated well and educated/informed us of each step in the process. I highly recommend The Multihull Company for those shopping for a catamaran!
Chuck at The Multihull Company is the real deal.
He helped us find our Lagoon 40 after genuinely listening to what we needed, not just what he had to sell. He let us visit the boat multiple times, answered every question honestly, and helped us make a confident decision on a major purchase.
What impressed us most was the post-sale support. Once the paperwork was signed, Chuck was still picking up the phone, offering referrals, and helping us work through the early stages of liveaboard life. That kind of follow-through is rare.
If you are looking for a multihull and want someone who knows the boats and actually cares about the outcome, Chuck is the person to call.
We just purchased a 2025 Nautitech 44 Open with The Multihull Company. The process of getting here has been great, and we could not have asked for a better agent. We worked with Conor, whom we met at the 2025 Cannes Boat Show. We started our search for a cruising catamaran in Florida at the beginning of the year. We spent a couple of months looking at different boats/models within our price range and quickly narrowed it down to what really mattered to us, in part thanks to the wealth of knowledge and expertise our broker provided. When we found a perfect match in Montenegro, Conor and The Multihull Company did not hesitate to continue supporting us and to lead the efforts from start to finish with great care and transparency. Communication and support have been outstanding throughout this entire process. Conor, in particular, showed great compassion and care, going above and beyond to ensure that no stone was left unturned and that we would be able to safely and happily sail off into our big adventure.
A sale well handled. No inflated expectations and an honest opinion throughout. Highly recommended.
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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