After seeing in our previous article how to register an offshore boat, let’s now have a look at the main benefits of an offshore yacht. There are many reasons to register your yacht or boat abroad, for instance in order to optimize and protect your heritage.
It’s key to register your boat through the creation of an offshore company. In this way, you will benefit from:
1. Absence of VAT
By buying your boat through an offshore company, you are buying it tax-free. This represents a very strong reduction in the purchase price if we consider, for example, that the VAT amounts to 20% in the UK.
You can for instance choose to create your offshore company in the British Virgin Islands (BVI). When the offshore company is established outside the European Union, the purchase of a yacht/boat does not fall under the scope of VAT. The purchase is an export.
2. No capital gains tax when selling
3. Low annual renewal cost
The registration of your boat or yacht must be renewed. So you might as well choose a jurisdiction that offers low renewal costs. This is possible in Panama. Indeed, this Central American country offers some of the lowest registration fees in the world. This is one of the arguments that explains why the main shipping companies around the world decide to register their ships in Panama. There are almost 8,000 ships flying Panamanian flags.