Where to register a sailboat?

[Joel_Martineau]

Hi there. I am a Canadian citizen, from British Columbia. I anticipate purchasing a sailboat soon, likely in the USA but possibly in the Caribbean or Mexico.

Anyone know where I will have to register the boat? And crucially, will I have to pay sales tax? British Columbia has a high "harmonized sales tax."

I would like to legally avoid the tax rather than illegally evade it.

All suggestions greatly appreciated.

Joel

[JeanneP]

you can't avoid "death and taxes" - it's a cliche because it's a truth.

Generally, you need a residence in the country and/or state in order to register your boat. When entering a foreign country in your boat you will need to present proof of ownership of the boat as well as proof of your identity and citizenship. Though it's true that some boats are registered in countries of convenience, I do not know how it provides shielding from sales and/or property/intangibles taxes. Anguilla and the Cayman Islands (or perhaps it's Turks & Caicos Islands - someplace there) have been used as countries of convenience. My (very limited) understanding of this is that one enters into a type of partnership with a citizen of that country to declare ownership of the boat by a corporation of that country.
Fraught with risk? I think so.

I understand that New Zealanders who hold dual passports - NZ and the UK, primarily - have registered their boat in the UK because the requirements were less stringent than NZ's (or maybe it's just a British thing - can't say). I don't think that it was a tax issue but rather adherence to safety/operational regulations in NZ.

I know this isn't much of an answer, but think of documents as protection - against thieves selling your boat/car/big-ticket item - and as proof that you are who you say you are. We gripe about the taxes we pay, but usually there are benefits associated with the obligations we face.

[Kiloran]

You might try Clay County Registrar in Vermillion South Dakota...surprising how many boats are registered in that county from all over...I'm registering Kiloran there, through the mail....no tax as the boat is over 11 years old, and I don't live there either. They don't ask too many questions about who you are and where you are from, and when I called them I asked if they were ok with registering boats from other states and countries...the reply was "no problem"
Give them a call and find out - maybe state you live part-time in South Dakota when you aren't cruising - I don't think they care if you are a permanent resident of US at all !

[jake473]

Try Delaware USA. I'm a kiwi who bought a yatch in Croatia 6 years ago and regeristed it in Delaware before I set sail. Had no problems to date and rego only $50 per year and pay online.

[rockerdar]

Joel,

When we bought our boat, we federally documented it as opposed to registering it. As such, we aren't 'registered' in any state. This option is only available, however, for U.S. citizens. Have you looked into the Canada vessel registration program as opposed to registering it within B.C.? Do you ever plan to take the boat to Canada?

As to sales tax, if you buy a boat in a state in the U.S., you normally have a certain number of days in which to remove the boat before sales tax is due. I wouldn't think you would owe Canada GST, PST or HST unless you take the boat up to Canada.

Happy hunting!

[Gallivanters]

I registered the last boat I owned while passing through the Territory of Guam - $35 for three years. No issues sailing from there to the Caribbean by way of the Red Sea.
I sold it and bought a bigger one in St Thomas. No sales tax in the USVI.
If Aye were you - I'd head to the Caribbean. It's a great place to buy a boat and get to know it while enjoying one of the top cruising grounds on the planet.
And no tax!
To Life!
Kirk

[StephLawyer]

Joel,
I'm a lawyer dedicated to vessel registration, if it is a pleasure boat I recommend to register it in Panama, you can register the boat in International Services which will allow you to visit all the ports, the taxes are razonable if you register the boat under your name as foreign you will have to pay to the government USD 1500.00 each two years and if you registered it under a Panamanian company USD 1000.00 per two years. Its good, Panama is a good Flag, number one in the world. Another obtion can be Belize. Please let me know if you need any assistance I can send you quotations form some flag for you to chose, also I have contacts, I move and have experience in this area for many years. Hope this can help you, evalute all your options before take decision.

[mico]

Panama is a good Flag, number one in the world.

Why am I instantly reminded of Borat?

Seriously though, while we all find ourselves in different circumstances, I'm inclined to agree with JeanneP and register your vessel in the same country of your citizenship or permanent residency. Most countries will allow their nationals to reregister a foreign vessel under their flag without having to bring that vessel back into the country. When we changed the registration for Australis (in Borneo) from US to OZ, the Australian authorities told us that this was a pretty common thing and that many of these vessels never set foot in Australia at all.

Think about it. If everything goes to shite while you are sailing offshore and you need your own consular facilities and support, it's going to be a lot easier for the consular if they are assisting their own citizens and a vessel under their own flag.

I'm sure (gawd forbid) if that ever happens - paying a few extra hundred dollars is going to mean diddley squat when compared to less complication when you are really in the poo.

One significant advantage of registering as an Australian vessel is the fact that you can readily purchase 'Green & Gold' mankinies to go with your Ozzie flag - issa good yes?


Fair winds,


Mico/Australis

[JeanneP]

Hi, everybody,

Sorry for the long silence. Right now Peter and I are on a River Cruise in China, and today is the first day in more than a week that I have been able to log into anything except for our mail account. Most frustrating, and we are guaranteed no internet connection for the next 3 days as we traverse the 3 Gorges.

I am surprised I got on today, but had to try because the information regarding registering in Panama alarmed me. Those prices are ridiculously high. No country I'm familiar with requires $1,500 to initially register, and renew at $1,000 biannually.

Will be back in the modern world September 1,
Jeanne

[Silver Raven]

Originally Posted by mico

Panama is a good Flag, number one in the world.

Why am I instantly reminded of Borat?

Seriously though, while we all find ourselves in different circumstances, I'm inclined to agree with JeanneP and register your vessel in the same country of your citizenship or permanent residency. Most countries will allow their nationals to reregister a foreign vessel under their flag without having to bring that vessel back into the country. When we changed the registration for Australis (in Borneo) from US to OZ, the Australian authorities told us that this was a pretty common thing and that many of these vessels never set foot in Australia at all.

Think about it. If everything goes to shite while you are sailing offshore and you need your own consular facilities and support, it's going to be a lot easier for the consular if they are assisting their own citizens and a vessel under their own flag.

I'm sure (gawd forbid) if that ever happens - paying a few extra hundred dollars is going to mean diddley squat when compared to less complication when you are really in the poo.

One significant advantage of registering as an Australian vessel is the fact that you can readily purchase 'Green & Gold' mankinies to go with your Ozzie flag - issa good yes?


Fair winds,


Mico/Australis

Goodaay Mico - it'sallgood - yes - Hey you - from 'the landdowununder'.
How many 'Green&Gold' manikins can I get - enough to make up a whole crew & how much do they eat/drink ???

You mention - "paying a few extra hundred dollars is going to mean diddley squat" etc etc. ARE YOU SURE ??? - it's only a few & even more sure that it's 'hundreds of dollars' & not thousands of dollars - - like $10K AUD plus - - or did you figure out something I haven't stumble-bummed across as yet ??? I've forgotten exactly what it was - but something like 5% plus all costs & charges added on top & then 10% on top of all that ??? I'm sure you've just done that - so would you please let me know - thanks.

In addition to the original purchase price - what about the tens of thousands of dollars in up-grades you spend on the boat to make it sail better/safer & more comfortable - how much 'tax' does all that cost the owner to pay to the OZ gvnmnt ??? Thanks for any help - I'll go & put the - prawns,snags & 'roo steaks on the barbie, beer under ice & dancing couples on the patio - just for fun. Ciao, james - just up the hill - -

[mico]

You mention - "paying a few extra hundred dollars is going to mean diddley squat" etc etc. ARE YOU SURE ??? - it's only a few & even more sure that it's 'hundreds of dollars' & not thousands of dollars - - like $10K AUD plus...

Ah - I never said anything about 'importing' - just 'registering'

Sure - a full import for us is looking at some where around $25,000 once you add up all the expenses, duty, GST, quarantine etc. That's why we're keeping Australis up in Borneo. We'll sail that part of the world for a few years before we bring her home.

And even then - I'm told we can sail still Australian waters for 3 - 6 months without having to pay importation.

That's just enough time for us to run to social security, collect our pension cheques, pick up our new false teeth, sort out the odd hip replacement, make sure we've hoovered up any forgotten assets my daughter may have foolishly believed she was going to inherit and then bugger off again to die peacefully on some beach in Malaysia or Indonesia choking on one of those tropical drinks with the fruit and the umbrella

Got it all sorted

Fair winds,


Mico/Australis