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.
Zvonimir heard that my vessel was back on the market and reached out to see what was going on. Nothing wrong with the boat! He put me in touch with Charles and we got her sold. Thanks for all the support and making it happen TMC!
Chuck was amazing throughout the entire process. Not sure how we could have navigated this without him and the Multihull team!
It gets no better than The Multihull Company. I’ve watched their great videos for years. When it was time to sell my catamaran, there were no other brokerages in consideration. THEY ARE THE CATAMARAN MARKET LEADERS!! Captain Will Miller has taken the company to the top level. They had an interested buyer prior to my listing going live. I was under contract the first week. The Multihull Company is an impressive organization.
Was a pleasure working with Andrew Hodgdon as buyers agent for our recent multihull purchase. Very knowledgeable of this space and for sure my first call buying or selling a yacht.
The multihull company has been great to work with. They were very helpful in every stage of our purchase from instill showings to purchase. Karl Reed, Andrew Hodgon and Andrew Holland were great sources of information and helped us find our dream Catamaran. Thank you Multihull!
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