The main benefits of an offshore yacht

1. Absence of VAT : the key benefits of an offshore yacht

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

This is one of the main benefits of an offshore yacht. Indeed, any capital gain realized on the sale of the boat will not be taxed locally. With an offshore company in the BVI, you benefit from the exemption of profit tax, income tax, capital gains tax and inheritance tax.
It is essential to choose the most advantageous offshore jurisdiction for you. To do this, ask our experts for advice.
 

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.

 

4. Confidentiality : one of the most important benefits of an offshore yacht

This is an important point to take into account when registering your offshore yacht. To ensure better confidentiality, it is advisable to set up an offshore company that is legally responsible for your boat. You have fewer constraints, less control and confidentiality is guaranteed.
 

5. Protection of your assets 

Beyond the financial advantages mentioned above, it is important to underline that the boat, once registered and owned by an offshore company, benefits from asset protection. It is therefore not seizable, and can easily be transferred to another person.

Also, the transfer of the boat becomes easier as you will not have to re-register it again.

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 : the key benefits of an offshore yacht

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

This is one of the main benefits of an offshore yacht. Indeed, any capital gain realized on the sale of the boat will not be taxed locally. With an offshore company in the BVI, you benefit from the exemption of profit tax, income tax, capital gains tax and inheritance tax.
It is essential to choose the most advantageous offshore jurisdiction for you. To do this, ask our experts for advice.
 

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.

 

4. Confidentiality : one of the most important benefits of an offshore yacht

This is an important point to take into account when registering your offshore yacht. To ensure better confidentiality, it is advisable to set up an offshore company that is legally responsible for your boat. You have fewer constraints, less control and confidentiality is guaranteed.
 

5. Protection of your assets 

Beyond the financial advantages mentioned above, it is important to underline that the boat, once registered and owned by an offshore company, benefits from asset protection. It is therefore not seizable, and can easily be transferred to another person.

Also, the transfer of the boat becomes easier as you will not have to re-register it again.