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.
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!
Sold my L42 here with the excellent help and support of TMCs Croatia sales manager “Zee”. Despite my boat docked on the dry in Montenegro, in winter and in a challenging market, TMC and Zee managed to get her sold, managing the entire process from taking pictures and video’s, putting her out there on the web, prepping her and managing all for inspections….down to the final hand-over documents and managing the escrow payments when all boxes were ticked! Very professional, very helpful (Zee went above and beyond to make sure he delivers excellent service), responsive and successful. Thanks TMC!
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.
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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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