Purchasing a yacht is a form of investment that can be subject to additional expenses once the vessel starts sailing and the owner needs to pay registration fees and taxes. Investors can create an offshore strategy for their investments in vessels just as much as they plan for offshore company formation.
We list some of the best countries to register a yacht and, as many foreign investors are interested in setting up a Cayman Islands company, it is understandable that this location will appear as a preferred location for vessel registration.
Table of Contents
Cayman Islands incorporation is a simple process and many foreign investors choose to open their business here, compared to other offshore centers.
Investing in various types of assets can seem simple for many entrepreneurs, however, buying a yacht is an international investment by nature: the vessel will sell international waters and will benefit from being registered in a country that is recognized internationally for its advantages.
The Cayman Islands is the best country to register a yacht for the following reasons:
The British Virgin Islands offer similar advantages to investors in terms of taxation. Investors who are interested in Cayman Islands company formation will know that the BVI also has favorable policies for offshore company formation.
For those who wish to register under a European flag, the Maltese ship registry is a good choice because of the EU compliant legislation and protection. Moreover, the country is subject to clear mortgage laws and low registration costs and the flag is well perceived around the world.
This is one of the largest registries in the world and vessels can be registered for one year or three-year programs. The ship can be registered within 24 hours and when registered here, a U.S. cruising permit can also be obtained.
A favorite among those who wish to register their vessel in Africa as the country is one of the first zero-tax jurisdictions here. There are no restrictions on the nationality of the ship crew or on the country of construction of the vessel.
As stated above, many boat owners will choose to register their vessel in a jurisdiction with low taxes, such as the Cayman Islands. Some of the issues to consider when choosing a flag for the yacht are the following:
These are just some of the issues that may determine investors to choose one jurisdiction over another when registering their yacht.
In most cases, investors who open a Cayman Islands exempted company and make a vessel purchase will also choose to register this vessel with the local Cayman flag.
The Cayman Islands flag is a popular one, as highlighted by the following numbers for the end of 2018:
As per a statement issued by the Cayman Islands Shipping Registry, the country is recognized as a leader in regulatory and advisory services for vessels and also for its technical excellence.
Investors who are interested in Cayman Islands incorporation and who also wish to register a vessel after or before they open a company can contact us. Our team will be able to assist investors during the incorporation procedure and also with the steps required to reserve a vessel name and complete the registration with the Shipping Registry.