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.
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.
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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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