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.
I chose Zee (Zvonimir Kalinic) after posting an ad for a broker on Yacht Sales from about 15 other brokers because he showed professionalism and care right away compared to the others. Most of the brokers never intended to show people my boat but yet somehow expected to collect commission. Zee met me in Novigrad and spent 3 hours taking photos and drone footage and throughout the listing period was communicating continuously and advising me about any offers that came through. His service was at a high standard that I was extremely happy with and felt comfortable at all times especially since I’m in Sydney and my boat is in Montenegro. I can’t recommend Zee highly enough to anyone looking to sell their boat with peace of mind.
The brokerage team has been amazing. They helped me find the right catamaran for our family of four, with enough space for extended family and friends to stay with us anytime. The broker really helped me narrow down what I needed. I started with a long list and eventually narrowed it down to something that was the right fit and price for me.
I cannot speak too highly of Andrew Hodgdon and his colleagues at the Multihull Company.
The process of selling my boat was very smooth and well managed and with excellent communication – especially important as I was unable to be nearby during the sale process. Andrew’s deep knowledge of the market and my boat was very reassuring. We spoke regularly and he kept me closely advised all the way through to a happy sale. I found him a good guy, very helpful, willing to share and bounce ideas around, and I enjoyed working with him. Highly recommended!
Andrew Hodgdon and The Multihull Company are really professional! I just closed a deal with them, and everything was pretty smooth. Andrew was punctual, showed a lot of expertise, and he was honest about all the problems with the boat. He is also giving me the support I need to run all the projects on this boat. This whole process was much better than I was expecting, and I recommend this team! Thank you, Andrew.
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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