While buying a new car or home is also an investment like getting a yacht, but the latter is of an international nature. This is because you have to choose a country for yacht registration and you need to be smart in doing so unless you want to expose your assets to unnecessary liabilities and taxes. If you don’t educate yourself about this process, your new purchase will just be a hole in the water in which you keep on dumping unnecessary sums of money.
Like with other international strategies, the country you choose for registering your yacht can have a huge impact on your freedom to travel and the amount of money you will save. Some countries have high tax percentages, others keep you from traveling freely to other jurisdictions and some do none of these things. You need to do your due diligence when choosing a country for doing your yacht registration. Once your boat is registered in a country, all of its laws will apply to it.
Moreover, you also want to register your yacht in a country that’s respected in the EU and the US. If you opt for a country with a bad reputation, it will restrict on how much you can travel or subject you to detentions and inspections. Apart from that, you also want to choose a country where you don’t have to break the bank for dealing with superyacht tax. Any vessel that’s owned by an EU resident or anyone who wants to spend time on European Union waters would be subject to VAT. Nonetheless, you want to keep it as low as possible. Luckily, there are some good options you can explore in this regard, such as the Cayman Islands, the Marshall Islands, Malta, Cyprus, the Netherlands, Liberia and also the British Virgin Islands.