An offshore yacht is a vessel that is registered in a foreign jurisdiction to avail benefits such as lower tax rates, confidentiality, and lesser restrictions. It can be owned by an offshore company that is registered in a foreign jurisdiction. An offshore yacht is a cheaper and tax-saving method of yacht ownership. It is wise to register a separate offshore company to operate the vessel. It helps in separating the ownership and income from the yacht for additional tax benefits. In this article, we'll have a look at some of the most popular jurisdictions for offshore yacht registration.
Best Jurisdictions for Yacht Registration
The following are some of the popular offshore countries suitable for yacht registration:
Seychelles is one of the most lucrative offshore jurisdictions for yacht registration. It provides maximum confidentiality and privacy in the registration process. Also, the country is an active member of the Commonwealth and the United Nations. This allows yachts under the Seychelles flag to gain profits from a friendly treatment across different countries. The key advantages of offshore yacht registration in Seychelles include high-quality services, confidentiality, and lower fees.
Owning a yacht with the help of a Mauritius Global Business Company (GBC) offers plenty of benefits. These benefits include:
- Flexibility to set up a Mauritius GBC Company as a Ship Management Company
- Availability of crew and other resources
- Management and administration of the corporate entity
You can opt for yacht registration in Panama, given that half of the shares are owned by a Panamanian company. The following are some of the benefits of Panama offshore yacht registration:
- Low registration and management cost
- Easy to resell
- No tax on profits
- Confidentiality and privacy
- Low annual renewal cost
- No minimum tonnage requirements
- No VAT on a yacht purchase
Cyprus can also be an ideal location for yacht registration. The following are some of the reasons to register your boat in Cyprus:
- You do not pay VAT on the purchase of your boat
- Costs of registration and management are the lowest in Europe
- The ideal structure for renting your yacht
There are plenty of advantages to registering an offshore yacht under the flag of Gibraltar, which is owned and operated by a Gibraltar company. Offshore yachts registered in Gibraltar usually fly the Red Ensign flag.
The offshore jurisdiction is an EU member but provides an exemption from VAT since it does not form part of the EU Common Customs Tariff area. Therefore, if you opt for offshore yacht registration in Gibraltar, you are exempted from VAT charges, tax on sale profits, and import duties.
A Gibraltar offshore company is allowed to register a yacht in Gibraltar. Therefore, foreign nationals can register a yacht in Gibraltar by using a Gibraltar offshore company, with nominees holding a majority of shares of the company.
6. The British Virgin Islands
The British Virgin Islands is perhaps the best jurisdiction for offshore business activities. The following are some of the benefits of offshore yacht registration in BVI:
- It offers the lowest costs of registering in the world
- Provides an ideal structure suitable to rent your yacht
- There is no tax on profits generated from the yacht
- The annual renewal cost is also low
- Anonymity is provided through offshore company registration
- You do not have to pay VAT upon purchasing the yacht
- You can have access to all the ports in the world
- The jurisdiction provides protection of the British marines law
- It is quite easy to resell the yacht
7. The Cayman Islands
It is yet another jurisdiction that offers plenty of benefits for offshore yacht registration. The Cayman Islands Shipping Registry is a regulatory authority that governs offshore yachts and comes under the division of the Maritime Authority. The governing body has been maintaining a shipping registry in Islands since 1903. The following are some of the advantages of yacht registration in the Cayman Islands:
- Lower tax rates
- Quick registration process
- Minimum requirements
Yacht registration can be a sophisticated process, and you can get through it quickly by availing services from experts who have years of experience related to the specific jurisdictions. The following are some of the benefits of offshore yacht registration:
- Better tax planning
- Availability of resources
- Limited liability
- High-level security
If you wish to register an offshore yacht, you can contact us today to know how we can help you in getting started.