Story by Andrew Holland / June 1, 2018
Occasionally we handle transactions where either a buyer or seller require a closing to occur outside of the area where the boat is currently lying. This is what we call an “offshore closing”.
The main reason that either party would request an offshore closing most often directly coincides with potential taxation or duty ramifications on the sale of the boat in it’s given location. To avoid these potential costs, the buyer and seller may agree to perform a legal offshore closing on the sale of the boat.
An offshore closing can be defined as when a boat is sailed into international waters on the agreed day of closing – the required distance offshore for closing will depend on the boats location – and finalization of the closing documents is done directly on the boat once you are in international waters. Photos are taken of the GPS coordinates and signing of the required documents, along with a photos of the signer with a copy of the days newspaper to provide photographic evidence of the time and location of the finalization of the closing documents.
Offshore closings are most often seen in states like Florida, California and in various countries in Europe.
While an offshore closing does require logistical consideration that can potentially complicate the closing process, it does present potentially advantageous legal methods to avoid tax and duty on the purchase or sale of a vessel depending on the details of the transaction.
The procedure and requirements for an offshore closing will depend on the boats current location and where she intends to re-enter the country after the closing, so if you intend to proceed with an offshore closing it is important to consult with professionals to discuss the legal requirements that must be followed.
For questions, feel free to contact the Multihull Company offices at 215-508-2704.
We had an outstanding experience working with Andrew Hodgdon to find our dream boat, an Outremer 52.
We were actually referred to him by several different people—clients who had been very happy working with him, as well as boat owners who were planning to use him to sell their own boats. After working with Andrew ourselves, we completely understand why he came so highly recommended.
We worked with him for several months, and from start to finish, he was exceptional. Andrew is incredibly knowledgeable and truly an expert when it comes to performance catamarans. He took the time to understand exactly what we were looking for, was always responsive and organized, and never made us feel pressured throughout the process.
Andrew went above and beyond to arrange showings for us in multiple states and even traveled to another state to be there with us for the sea trial. His expertise and guidance gave us tremendous confidence as we evaluated such a significant purchase.
The entire process could have been overwhelming, but he made it remarkably smooth. He was on top of every detail and made the paperwork and closing process easy, working seamlessly with his team at The Multihull Company.
What impressed us most was that he genuinely had our best interests in mind. And his support didn’t end when the sale was completed. He has continued to stay in touch and has made it clear that he is still available to help us if we ever need him. That kind of follow-through is rare and speaks volumes about the kind of broker he is.
Buying an Outremer 52 was a huge decision and a major investment, and having someone with his knowledge, experience, responsiveness, and integrity made the entire experience so much easier and more enjoyable.
We couldn’t recommend Andrew Hodgdon more highly. If you’re looking for a yacht broker—especially if you’re considering a performance catamaran—we would choose him again without hesitation. The fact that so many people recommended him to us was the reason we called him, and after working with him, we would be one of those people recommending him to others.
I highly recommend Andrew Hodgdon. He served as our buyers broker. He is responsive, highly knowledgeable and very experienced. He is also an excellent guide and counselor before, during and after the boat purchase process. If you are looking for a good-sailing cat, he seems to collect most of the available boats on the better-sailing side of the market. Top marks.
Andrew did an excellent job getting me started on my new adventures. Worked with my conflicting schedule. Is very knowledgeable in the catamaran industry. 😎
I recently sold my Lagoon 450 with the Multihull Team. I would highly recommend their services. The professionalism and personal treatment I received was greatly appreciated.
Great Service, Great People
Helped me through the process.
I would go through them again in a future purchase.
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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