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!
Zvonimir heard that my vessel was back on the market and reached out to see what was going on. Nothing wrong with the boat! He put me in touch with Charles and we got her sold. Thanks for all the support and making it happen TMC!
Chuck was amazing throughout the entire process. Not sure how we could have navigated this without him and the Multihull team!
It gets no better than The Multihull Company. I’ve watched their great videos for years. When it was time to sell my catamaran, there were no other brokerages in consideration. THEY ARE THE CATAMARAN MARKET LEADERS!! Captain Will Miller has taken the company to the top level. They had an interested buyer prior to my listing going live. I was under contract the first week. The Multihull Company is an impressive organization.
Was a pleasure working with Andrew Hodgdon as buyers agent for our recent multihull purchase. Very knowledgeable of this space and for sure my first call buying or selling a yacht.
The multihull company has been great to work with. They were very helpful in every stage of our purchase from instill showings to purchase. Karl Reed, Andrew Hodgon and Andrew Holland were great sources of information and helped us find our dream Catamaran. Thank you Multihull!
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.
Read More
