Offshore yacht registration in an offshore country like the British Virgin Islands (BVI) or in the United States is very advantageous in more ways than one.
First, the initial and annual renewal costs are lower; and second, there are no fees or taxes when reselling, transferring or bequeathing inheritance.
It also provides a solution to the need for privacy and the protection of personal assets.
Moreover, if you buy your yacht through your own offshore company , it will be tax free.
Vessels registered in the British Virgin Islands are entitled to fly the Red Ensign flag, consisting of the prestigious Union Jack on a red background, and guaranteeing the support of the British Consulate and the High Commissioner, as well as the protection of the Royal Navy.
The British Virgin Islands (GB) are listed in the Category 1 Register and can register vessels of up to 300 GT (gross tonnage), and unlimited draft.
Beyond the simple financial benefits, there is another important consideration: if it is owned by an offshore company, the ship, once registered, will therefore be a non-seizable, freely transferable asset. The easiest way to sell a yacht in this environment is by selling shares of the owner company and not the yacht itself, as this way it will not need to be registered again.
It goes without saying that no capital gain from a potential sale of the ship would be taxed locally.