REGISTRATION AND TAXES OF CATAMARANS

REGISTRATION AND TAXES OF CATAMARANS are important to understand in order to minimize taxes.
Any owner can be totally tax free if they use certain strategies. One is "foreign flagging" which involves forming a company and registering in a foreign jurisdiction. Some of the cost-effective jurisdictions are St Vincent, Gibraltar, and BVI. Costs range from $3,000-5,000. The drawback is that when you come to the U.S. you must clear in as a foreign vessel and the cruising permit is usually good for one year.
Another way to remain tax-free is to buy the yacht outside the U.S., such as in the Caribbean, and cruise outside the U.S....If you come back to the U.S. you can trigger "Use Tax" (usually around 6-7.5%) in some states and/or US Customs Duty (about 2% of the value with all fees) if you formally import the vessel. Delaware LLC's can shield you from state "personal property taxes" in most cases.
European citizens pay VAT if they cruise in Europe and these rates can be between 13%-23%. I can help Europeans remain VAT free if they follow certain rules.
For most US Residents Documentation (really just a Federal registration) or state registration are the most common choices. If you are involving a US lender they will usually require Documentation because it helps them perfect their Preferred Ship's Mortgage. There are over 200,000 yachts using Delaware state registrations because it is cheap, hassle-free and relatively quick to get. You will need a Delaware LLC (costs around $300) to do this and then the actual registration fee is based on vessel length (a 40' yacht costs around $90/year). Some jurisdictions like Martinique and Guadeloupe do not recognize Delaware state registrations.
Then we have "Documentation" which is administered by the US Coast Guard. This usually costs around $600 and I recommend you have a company hold title for liability reasons. The USCG tracks liens and encumbrances on Documented vessels so it makes it easier to re-sell the vessel later.
If you engage me as your Buyer's Agent I will brief you on some other little-known tax exemption strategies that are available. Governments are getting more aggressive in collecting taxes but if we plan legal tax avoidance in advance it's usually not a problem. The key is "advance planning". See more information on my website LargeCatamaransForSale.com.

[@brentdreisbach6829]

Hi Gary. I love the new look. Thanks for all the great info. We'll be calling you sometime next year.

[@gabrielmarshman2819]

Couldn't have seen this at a better time, I just purchased a cat two weeks ago!

[@paulsaleba5537]

Happy to see you are posting again. I always find your input and comments extremely valuable. Keep them coming. When I’m ready to buy, you’ll be my guy!

[@Catamarans]

I appreciate that!

[@TedKidd]

Such interesting videos

[@HopeOfJoe]

Great info. Thank you. ✨ ✌️ ✨

[@violetadams9253]

Your advice is invaluable. Thank you for sharing. God Bless

[@Catamarans]

You are so welcome

[@ctlowe]

Ill give you a shout when I get serious! Just bought a 610 Sundancer from Ft Lauderdale and brought it back to Tn but looking for a PC to leave in the islands. Learning!!!!! You may know a buddy of mine David Gennette? Hes been a broker in Ft Lauderdale for years. Retired now.

[@Catamarans]

Yes I'm acquainted with David...Leopards are the best-built cats...according to the surveyors I speak to

[@italiangreyhound4u]

Nice new look Gary!

[@spaRTan3246]

My first thought was "why is Max Biaggi doing cats now"? 😂

[@Catamarans]

Thank you kindly

[@Catamarans]

I was researching an ancestor of mine (Captain Bernhard Fokke) who was a Dutch ship captain in the 1600's and I saw how some sailors of the day wore "anchor" goatees. So, when I went wreck diving in the Bahamas I decided to grow one in memory of the old Dutch sailors who took huge risks in sailing half way around the world to make a living...risking sea monsters, shipwrecks and such

[@michynature]

Great info much appreciated. Why do I sometimes see the disclaimer that says, “Not for sale in US waters or to US citizens or residents.” ?

[@Draconisrex1]

Same question!!!

[@randyfourtyeight7410]

I see that disclaimers with boats that are in Florida. What is the plan, sailing out beyond US waters to make the sale?

[@Catamarans]

HI, THIS JUST MEANS THAT THE YACHT HAS NOT PAID THE US CUSTOMS DUTY. THIS IS REQUIRED FOR ALL FOREIGN BUILT YACHTS WHEN THEY ARE FORMALLY-IMPORTED.. THE TAX RATE WITH ALL FEES IS ABOUT 2% OF THE APPRAISED VALUE. IF THE YACHT IS OUTSIDE U.S. WATERS THEN THIS TAX DOESN'T APPLY.

[@randyfourtyeight7410]

@@Catamarans Thanks for the reply. It still makes no sense to me. As a buyer wouldn't I be on the hook for any duties? I would think that it would be my decision to pay that duty or not.

[@michynature]

@@Catamarans thank you so much but I still don’t understand the part then that says not for sale to a US citizen.

[@darthkek1953]

It's a similar thing with diesel VAT in the EU. If a non-EU (inc. flag of convenience) vessel stays in EU waters they're liable for VAT, that's 15% or more depending on the port flag, but if you head internationally no VAT liability. For a superyacht that can put in several hundred thousand Euros of fuel in at a time that's a huge chunk of change - even for the rich. So they depart for North Africa e.g. Tunisia, dock there for a night and sail right back again. One of Flavio Briatore's alleged misdeeds that lead to his yacht ("Force Blue") being sized was he claiming to have done the out-of-EU overnighter to avoid tax and then didn't even bother to actually do it though I think there was more to his story than just that.

[@sagemaster9754]

Gary what’s the deal with registering and tax for Australian boats bringing a boat into Australia thank you

[@Catamarans]

Hey Sage, best to speak to a broker in Oz for the latest updates

[@shepman7872]

Hi Gary, We're coming to Ft. Lauderdale in February to check out the area. Looking to move there while we search for a cat. Top of the list is an FP Elba but open to other options. Will contact you soon to set up a time to meet with you when we're out there. If we buy used you will be our broker. Also going to be looking for a house rental with a dock, any suggestions as to best location to look?

[@Catamarans]

Sounds great! The further from the ocean you are, the lower prices are...I can guide you in this regard

[@Albond11111]

Hello my name is Al Bond and I am in the market for a Lagoon 450 I would like to get your help with finding one and deal with the purchase, registration and taxes.

[@Catamarans]

HI AL, IF YOU ARE STILL IN THE MARKET PLS EMAIL ME AT [e-mail]

[@duanebradner5878]

Does Canada count as a foreign country?

[@Catamarans]

Yes it does