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!
Your team delivered on every mark. You’ve got an amazing broker in Mark Wattrus and I’m confident you will have continued success moving forward together. He was available 24/7 whenever I had questions. We had a great initial visit on the boat and his marketing plan and photos were superb
I bought a yacht that I had never seen. I did this because I trusted my broker Andrew Holland. It was not an easy job for Andrew, as I am an experienced boat builder and owner of previous yachts, but work in West Africa. Imagine how hard it was to communicate what I was looking for. Andrew came up with exactly what I wanted. He dealt with time delays, all my questions at odd hours, and was there for the survey. He reported honestly and professionally. After buying the yacht, I arrived at the boat on a Sunday night, after dark, after travelling from West Africa to the Caribbean, and found it was better than expected. He never pulled punches and made me aware of shortfalls. I expected to spend my one month leave working on the boat, but actually spent less than one week, and was able to spend 3 weeks sailing – wonderful bonus.
Thank you Andrew for putting up with all my questions, all my worries and all my crazy out of the time zone concerns – you were totally professional, but also I know that if and when we meet up, it will be like a friend finally meeting. You are always welcome on Aseka.
Outstanding company with professional subject matter experts. If I were to buy or sell cruising sailboat, particularly a catamaran, Andrew would be my go to broker.
I have been sailing since I was a child and attended Massachusetts Maritime Academy. But when my wife and I began the process of purchasing an ocean cruising/racing catamaran, I realized that this is a world unto itself. Obviously, we needed to find someone knowledgeable to help us make an informed decision. More importantly, we needed someone honest and willing to put our interests before his or her own. I was lucky to work with Phil Berman at The Multihull Company. He repeatedly shunned the fast buck, choosing instead to work the long road to connect us with the “perfect boat”. I would be glad to recommend Phil and his company to anyone planning to purchase or sell a performance sailing machine.
Andrew Hodgdon was our broker when we bought our 2018 Lagoon 450F in Antigua in April 2922. He provided great service and was very attentive to our needs. We would highly recommend Andrew and the Multihull Company.
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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