Yacht registry happens to be one of the most interesting and important aspects of purchasing or owning a yacht for international cruises. Just like online ship registration , yacht registrations are also of equal significance. So, whenever you purchase or lease a yacht, consult your broker or lawyer who will let you know the right procedure to get your boat registered. The flag you choose to go with will fly from the transom of your yacht and will have a direct influence on your privacy, liabilities, boarding charges, taxes, and so forth. So, you need to be careful about deciding which flag would prove to be the best for your yacht.
Technically, a flag state is the government authority or the country that gives your boat a legalized access to open waters. It can either be the nation that you belong to or a country where you work or carry out your business. There are a number of benefits of getting your yacht registered under offshore flags. Owners that decide to offer their yachts for chartering in EU, have an edge over others in several ways. It is not only limited to reduction in tax burdens but also resolve matters related to insurance, ownership confidentiality of ownership, and so forth.
There are a numerous famous flag states that have comparatively simpler and more appealing rules and regulations regarding yacht registration. They take a strong edge over others by offering favorable taxation and much better liability protection under a very balanced legal and fiscal system. Along with, they also have user-friendly regulatory, inspection, and construction compliance regimes that can easily streamline the operational and ownership regulations related to large sized yachts.
Registration of a private yacht with a Dutch flag also permits the owner to work under the Temporary Importations. Under this, the yacht can easily operate for 18 months without subjecting the boat to custom taxes, duties, as well as VAT. Owners that want to pursue charter across world’s most famous destinations that fall in the Mediterranean and Caribbean will always go for those offshore flags that supports Sailboat Registration of commercially operable vessels. Apart from these benefits, structures like these also permit the vessels to work within VAT system. VAT over charters still charge the end users, however, the system permits the operators to carry out legal charter businesses that can account for their input tax according to regular business sense.