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.
Yacht Broker Micheal Streng did a fantastic job helping us buy our dream retirement boat. He is pleasant, professional, smart, diligent, and totally focused toward ensuring the best outcome for us- his clients.
He helped us identify the key features we wanted. And, helped us then learn the market by seeing firsthand seeing all the boats available. How? By organizing a two day driving extravaganza to see as many boats available from dawn to dusk.
But, his crucial expert assistance continued throughout the whole buying process… helping us craft multiple offers and counter offers to ensure we “bought-right”!
His expertise continued with calmly helping us organize the multitude of details, from sourcing survey experts and renegotiating credits for issues… to ensuring our foreign manufactured vessel had duty paid receipts… thus all saving us much aggravation and thousands of dollars!
In closing, sourcing and buying a boat right has adventurous elements of the “wild-west”. Our Broker – Micheal Streng was our LoneRanger & Tonto… expertly guiding and helping us to help make our dream a reality.
Tom & Danielle
Waterford, Connecticut
We purchased a Lagoon 470 catamaran through Zvonimir (Zee) Kalinic, TMC’s broker in Croatia and Italy. Zee is the ultimate professional and by far the best broker we have ever had the pleasure of doing business with. Thankyou Zee for your professionalism, guidance and support in securing this purchase for our family! Not an easy task being Australian and purchasing in a foreign country but thanks to your help and the assistance of Andrew Holland in the office, this process was made so much more stress free.
Thank you Zee and The Multihull Compnay!
Andrew Hodgdon was a pleasure to have as a broker. He was always there for me and I appreciated his help and professionalism. Thank you Andrew!! Highly recommended.
Just wish to share our thanks with Cal Landau and The Multihull Company for their service selling our catamaran that we owned for nearly 15yrs. Cal our broker in West Palm Beach was THE BEST!
He worked with us beyond the call of duty in helping us prep and moor our boat during some horrendous weather that came through last Winter and always offered to lend a hand while we were in West Palm procuring supplies. etc. Cal was always present to show the boat, learned about our boat systems to answer questions from shoppers and made a very informative listing with great photos and video that attracted a lot of action. I wish to highly recommend Cal and The Multihull Co if you’re planning on putting your boat on the market.
The entire company was committed to my satisfaction as a seller. Andrew the broker went out of his way to help me prepare the boat for sale and in just 3 weeks we had it under contract. I had to be away from the country but Andrew the broker and Andrew (same name) the Chief Operating Officer walked me through all the paperwork needed and kept me informed at every stage of the sale. Boat owners don’t remain without a boat for long, if this is the case for me, I will certainly contact Andrew and the Multihull Company to be my broker.
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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