Are you planning to register a yacht in an offshore jurisdiction? Offshore yacht registration is an attractive option for foreign nationals to save additional expenses in the form of taxes, and other charges apply according to the jurisdiction guidelines.
The significant benefits of yacht registration in an offshore country includes favourable tax laws, minimum tonnages requirements, and flexible options for VAT. With offshore yacht registration services, you can benefit from benefits such as well-structured ownership and convenient registration procedures.
Now, there are various considerations that you have to make before getting started with the offshore yacht registration process. The primary concern would be complying with the offshore yacht regulations and conventions as specified by the selected jurisdiction. These regulations require to keep the following considerations in mind:
1. The Standards of yacht construction, equipment used and authorized the survey of yachts
2. The labour conditions and training of staff and crew members
3. Safety concerning the navigation of the yacht
4. Controlling and possibly reducing marine pollution
5. Investigation of yacht casualties
Reason 1: Tax Advantages
Many offshore jurisdictions do not impose any tax on income, capital gains from the yacht (if commercial), or any similar financial revenues. Therefore, the operation and income of any registered vessel, including the capital gain on its sale, can be considered as tax-free.
There are additional tax benefits such as exemption from customs duties if the vessel surpasses a specific limit of GRT, which also exempts documentary stamp duties. These exemptions are made irrespective of their call at the local port. Also, as a part of the act, prescribed forms and mortgages are exempted from stamp duties as well.
Reason 2: Foreign Ownership
If the offshore vessel is engaged in foreign trade, and not exclusive to the offshore jurisdiction, the owner of the vessel can claim foreign ownership. It can be done either by holding the ownership individually or through a corporate entity. Offshore company formation is one of the convenient ways to own a yacht in an offshore jurisdiction. Also, vessels having an overall tonnage exceeding 1600 can hold direct ownership as issued by the Maritime authorities.
Reason 3: Privacy
The primary reason behind yacht owners opting for offshore jurisdiction is that they want their owners to be discreet. Also, it is a common practice to remove ownership individually and to opt for an offshore company that legally holds the ownership of the foreign vessel. It is essential to know that registration of an offshore yacht not only provides confidentiality but also enables you to avail benefits such as cheaper registration costs and tax savings.
Reason 4: Liability
One of the significant concerns with yacht ownership includes liability associated with the vessel. There can be instances where any incident that occurs in the vessel can directly affect the owners. It includes injuries to crew members or any haphazard that can make you entirely liable. Therefore, to limit liability, it is crucial to ensure that you have registered the yacht through a business entity to avoid any legal trouble that could compromise the protection of your assets.
Reason 5: Flexible Labour Laws
Labor issues are a common concern that discourages people from opting for a yacht. There are strict laws regarding the labor for vessels that can sophisticate the yacht registration process. With offshore yacht registration, you can ensure that the following criteria are satisfied:
- More than 50% of the crew members consist of local citizens of the offshore jurisdiction.
- The crew members also benefit from the jurisdiction's labor law and enjoy amenities
- The crew members should be well trained as per the minimum requirements
- Also, offshore yacht registration ensure a safer journey for crew members
Best Countries to Register an Offshore Yacht
Selecting the best offshore jurisdiction is vital for offshore yacht registration. There are many countries that offer top-notch offshore solutions that would be suitable according to your requirements. Some of the best jurisdictions for the registration of an offshore yacht include:
How to Get Started?
Vessels and yachts are registered in a foreign country, mainly because of the various benefits that the maritime laws provide and the flexibility given to the yacht owners. Also, it helps in better tax planning and savings. It is much more convenient is the ships or yacht is owned and operated by setting up an offshore company. It is vital for tax efficiency and enjoying limited liability.
If you want to get started with offshore yacht registration, you can contact us today to avail of our offshore services.