Foreign vessel registry....bad idea?

hard to reply without knowing what size boat you are talking about.

first, you need to be US citizen, not just resident, to document and flag a boat in the US.

there are different rules for foreign flagged yachts when coming in the US, depending on the size/tonnage. it's not a cost issue but a hassle/paperwork problem, ranging from having to notify customs when the boat moves from one port to the other, to pilotage requirments, advance notice of arrivals, etc...

off hand, i don't believe Belize is on the list of countries whose vessels are elligible for cruising permits but you may want to double check that on the customs site.

Hi,

Does this still apply if you own a Delaware Corporation?

I was just about to ask the same question, having worked on a few Delaware reg boats.

corp owners/principals/majority stock holders must be US citizens.

i'm sure there are ways aroudn that though but if the owner is foreign AND the boat will not spend a lot of time in the US, it's probably not worth it.

out of curiosity, I double checked and Belize is not a flag on the cruising permit list (at least according to a recent Triton article)

Pilotage for Areas of Desired Use

Even smaller foreign registered boats have a tough time up here in Washington and Alaska. Canadian vessels get a break in Washington, but other foreign flagged vessels either have to pay for a pilot or seek a paid exemption (if they are small enough in either length or tonnage depending). So keep your desired cruising waters in mind. Other states may imposes such fees or restrictions as well. I recall that Ken Bracewell had a great posting about pilotage requirements on several of the Atlantic coast states.

http://www.yachtforums.com/forums/yacht-captains/11475-pilotage-requirements.html

Won't really help with the boardings. Might help with paper work.

You would be better off asking some of these questions to a well established documentation service and your insurance agent.

as Bill said, take any online advice with a grain of salt, consult a maritime attorney to find out all the tax and legal ramifications. that said...

it's indeed less paperwork when coming in the US. When documenting the vessel, you can basically pick any hailing port you want, you dont' even need an address there although there will be state tax issues.

Delaware and Rhode Island are popular becasue there are no sales and use taxes on boats in these states. BUT... you may still be liable for Sales and Use tax in other states depending on how long the boat spends there. it varies by state, for instance it's 60 consecutive days in Mass. (and Maine i believe), 180 cumulative days a year in florida, etc...

florida has recently capped sales tax on boats to 18k so it may make sense to "just" pay the tax and not have to worry about the number of days you spend in the state.

It all depends on what you plan to do with the boat. If you are not going to spend a lot of time in FL, you may be better off homeporting the boat in DL or RI and not pay any SUT

again, you need to consult a maritime attorney to see what works best for YOU

as to boardings, i dont' think the flag makes a big difference although it may... routine boardings are pretty painless on US flag yachts but i've never been boarded on a foreing flag.

for insurance, you need to get quotes and compare, I dont' think it will make much of a difference. other factors play a big role such as where the vessel will be spending the most time, especially in hurricane season.

You do not need to be a US citizen or resident to own a Florida corporation that can own the yacht. Then you can pay the Florida sales tax and get Florida registration numbers that must be displayed on the bow of the boat and you can carry a US flag. However you must enter and clear US customs when entering or leaving the US the same as a foreign flag vessel because the owner of the corporation is not a US ctizen. However when travelling to the Bahamas there is no difference entering or clearing with them as other US boats, they just want the the fee for their cruising permit.
By paying the maximum $18,000 Florida sles tax you can keep the boat here and use it here as long as you want, and in a few years time when you want to sell the boat it can be sold in Florida without the dreaded NOT FOR SALE TO US RESIDENTS WHILE IN US WATERS caveat.
You can incorporate in Delaware or Rhode Island and register there without sales tax, and limit your time in Florida. If you buy the boat in Florida from a licensed broker you can get a permit to use the boat in Florida for 180 days without sales tax if you do not intend to keep it in Florida.
Tucker Fallon CPYB

Don't confuse registration with documentation.

Nor with CNBC