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!
It’s been a few weeks now and the dust has settled. We had a great experience with the Multihull Company and in particular our broker, Caroline Laviolette. Caroline was happy to share her knowledge of the market and the catamarans we were interested in purchasing. She was patient and thorough as we looked at several boats in SE Florida, helped us narrow our search and eventually purchase a beautiful 2017 Lagoon 42. Many thanks to the team at The Multihull Company!
We had a great experience purchasing our boat with Will Miller as a buyers agent. Purchasing our first large Cat is a daunting experience and Will was able to walk us through the process with ease. Will was very straight forward and constantly gave us honest feedback as well as finding and pointing out details on all the boats that we may not have noticed or thought about.
We had a great experience and would use them again.
I would specifically recommend a buyers agent when purchasing to help weed through a lot of problems and misrepresented boats on the market.
We have had great experiences with the Multihull company. We both sold our old boat through them, and bought our new boat through them. I have to say that Will Miller is top-notch, and Riley was great as our broker for selling our O day 39. when you buy a Salt or Boat through them, I feel like you are not only clients, but you are friends. The lines of communication were always open and we were always informed of everything going on.
Riley, and the entire staff at The Multihull Company, were incredibly helpful and responsive in helping me find and purchase my catamaran. I was a first time purchaser and had many questions about the process and Riley was very responsive in answering those questions. I would recommend The Multihull Company to anyone in the market to purchase or sell their boat.
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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