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.
Cal Landau went above and beyond taking care of issues that came up during the listing. I can’t say enough.
CHRIS DID A GREAT JOB TAKING PICS AND INFO ABOUT THE BOAT AND REPRESENTED IT WILL. THE SALE COMPLETED WITHIN 3 MONTHS OF LISTING!
I recently sold my boat through The Multihull Company and was very pleased with the experience. Their professionalism and efficiency made the process smooth and hassle-free. Highly recommend their services for anyone looking to buy or sell a boat!
Highly recommend Andrew Hodgdon and The Multihull Company crew. They were an amazing resource throughout the entire purchase process – organizing viewing, getting the boat under contract and surveyed, all the way through closing. Communications were consistent and straight forward. Multiple personal touches along the way to make you feel like part of the team.
Could not be happier. Conor is just a super likable guy and he walked us through the whole process and Andrew handled all the paperwork and financials and together they got me into my first catamaran! Will definitely be calling Conor again when we buy our next boat!
Successful relationships cannot exist without it. At The Multihull Company we base every relationship on a firm commitment to earning and retaining our client’s trust.
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.
Read More
