| YES - DELAWARE IS A TAX FREE STATE FOR VESSEL PURCHASES – BUT! |
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Many of our clients are under the impression that if they obtain a Delaware Registration the vessel will remain tax free. Unfortunately, this is not true. First, you must think in terms of where the vessel is physically located when you take possession of it. Then you must review the tax rules of that particular state. Next, you need to know if the vessel is staying in the state where you took possession, or if you will be moving it to another location. Then of course, you must review the tax ramifications of the state you are moving the vessel to. It all gets a little complicated for a first time yacht buyer. But actually, it’s relatively simple if you look at each step separately. We can help you but we cannot advise you. We can impart the knowledge we have gathered over our many years of experience, but we always advise that you verify any information we impart with the proper taxing authorities. Simply setting up a Delaware Corporation or a Delaware LLC will not necessarily accomplish what you want. We are always here to talk to you and help you with your decision making, and we never charge for our time when doing so. |
| NON U.S. CITIZENS OWNING A DELAWARE REGISTERED VESSEL CRUISING IN THE UNITED STATES |
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A non U.S. Citizen may own a Delaware Corporation or LLC which in turn will own a vessel registered in Delaware. The vessel may cruise the waters of the United States, BUT, according to U.S. Customs, must fly the flag of the country of the Owner of the Corporation or LLC. The vessel must also clear in and out of Customs whenever it moves from port to port within the United States. If the vessel visits another state, and stays beyond the “visiting period” allowed by that state, then the vessel owner has become vulnerable to the taxing laws of that particular state. KNOW BEFORE YOU GO – visit our site often, and click on Fees/States then click on a STATE for information about visiting periods with a valid out of state registration. If someone who is NOT a U.S. Citizen purchases a boat in the U.S., the minute the sale is completed, it is now an un-registered vessel. The new owner is required to file Form 1300 (Permit to Proceed) with U.S. Customs. (A Customs broker’s office will handle this if desired). The vessel can operate within the jurisdiction of the Port (i.e. Dock A to Dock B in Miami) with a Bill of Sale on board AND a copy of the Bill of Sale on file with the Marine Division of U.S. Customs. BUT if the vessel wants to move to the jurisdiction of another Port (i.e. Miami to Fort Lauderdale), then Form 1300 MUST be filed. Fines can be steep ($5,000) for a first offence. |
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Proud Member of the Florida Yacht Brokers Association |
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All Yacht Registries, Inc. The Full Service Yacht Registry Specialists |
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| 877-9-SHIPS-9 Jan Painter | 877-9-RV-YATS Connie Crews |
