Registering your boat, ship or yacht in the BVI (British Virgin Islands) or the United States offers several significant advantages. Firstly, in terms of initial costs and annual renewal fees; secondly, in the lack of capital gains tax in the event of a sale, transfer or estate succession. It also provides benefits in terms of privacy and asset protection.
Additionally, when buying your boat through an offshore company, you can purchase it tax free.
Boats registered in the BVI sail under the British flag and fly a flag made up of the famous Union Jack with a red ensign (Red Ensign Flag). They therefore benefit from the right of assistance from the British consulate and high-commissioner as well as the protection of the Royal Navy.
The British Virgin Islands (GB) are a class 1 register, which allows boats and ships of up to 300 GT (gross tonnage) and unlimited draft to be registered.
Required documents for registering a boat
The documents listed below concern the registration of pleasure boats for private use. These documents must be provided when submitting a registration request.
1. Certificate of conformity
2. Builder or manufacturer’s certificate, or bill of sale
3. Statement declaring the boat’s use
4. If the boat is already registered, a certificate of register removal is required.
Note: The boat must be at least 7.5 meters long.
Why to register your yacht Offshore
The advantages of registering pleasure boats, yachts or trading vessels under the BVI British flag are:
1. No VAT
2. No capital gains tax
3. Low yearly registration renewal fees.
In addition to the financial advantages, there is another aspect to consider: Once the boat is registered under and owned by an offshore company, it benefits from asset protection and can no longer be seized. It is also easily transferable. The easiest way to sell the boat is to sell the shares of the company rather than the boat itself, which eliminates the need to re-register the boat.
Last but not least, no local capital gains tax will be levied in the event the boat is sold.