Story by Andrew Holland / June 1, 2018
Occasionally we handle transactions where either a buyer or seller require a closing to occur outside of the area where the boat is currently lying. This is what we call an “offshore closing”.
The main reason that either party would request an offshore closing most often directly coincides with potential taxation or duty ramifications on the sale of the boat in it’s given location. To avoid these potential costs, the buyer and seller may agree to perform a legal offshore closing on the sale of the boat.
An offshore closing can be defined as when a boat is sailed into international waters on the agreed day of closing – the required distance offshore for closing will depend on the boats location – and finalization of the closing documents is done directly on the boat once you are in international waters. Photos are taken of the GPS coordinates and signing of the required documents, along with a photos of the signer with a copy of the days newspaper to provide photographic evidence of the time and location of the finalization of the closing documents.
Offshore closings are most often seen in states like Florida, California and in various countries in Europe.
While an offshore closing does require logistical consideration that can potentially complicate the closing process, it does present potentially advantageous legal methods to avoid tax and duty on the purchase or sale of a vessel depending on the details of the transaction.
The procedure and requirements for an offshore closing will depend on the boats current location and where she intends to re-enter the country after the closing, so if you intend to proceed with an offshore closing it is important to consult with professionals to discuss the legal requirements that must be followed.
For questions, feel free to contact the Multihull Company offices at 215-508-2704.
We purchased our lagoon 410 through the multihull company, Andrew Hodgdon was the listing’s broker. From the start till the end of the process he was upfront honest and accommodating. Our situation was unique and required a bit more leg work. Andrew was always easy to get a hold of and willing to help. It was a pleasure working with a highly knowledgeable broker that values integrity. I highly recommend him.
My experience with Andrew Hodgdon was entirely positive during the selling process of our used catamaran.
He followed up at every stage, organized successful showings, and explained in detail the closing process.
I am happy to give a 10 out of 10 review.
We purchased our Balance 442 through TMC, Andrew Hodgdon in the St Augustine office, and the experience was excellent. We had a couple last minute issues like incorrect hull ID on docs, and they quickly ran point to get this all taken care of to help us close on time. It was all especially impressive given that most of this was happening during the end of year holidays. Good team, good follow up. Recommended.
Working with Andrew Hodgdon at The MultiHull Company was a great experience. Andrew has years of experience in the multihull market, especially performence catamarans and was the Technical Director at Balance Catamarans for many years. He’s always available to talk, guide and advise. He’s easy to work with, is extremely knowledgeable, and has a very pleasant way about him. I would highly recommend Andrew to help in your sale or purchase of any multihull.
Working with Will, Andrew Holland and Andrew Hodgdon to sell my Balance 442 was such a pleasure. No one knows multihulls as well as Andrew Hodgdon, especially performance cats like a Balance. As Technical Director of Balance for many years, Andrew knows all of the nuances of that type of boat, as well as the other brands in the category. If you want to sell or buy a catamaran, look no further than Andrew Hodgdon!
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Advice of any kind is valuable only when grounded in hard-won expertise. It too, must be trustworthy. Trust and expertise define the heart and soul of The Multihull Company. We are a team of skilled professionals who thrive on providing expert, trustworthy advice and service to catamaran and trimaran sailors around the globe.
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