Choice of Flag and Registry
What is the “right” owner structure and flagging? An often asked question, but there is no Standard answer as this must be researched and developed case-by-case according to an individual mix of criteria relating to the owner’s situation, the use of the yacht and its economic, legal and fiscal operation.
However, a piece of advice should be taken into consideration as mandatory: Before building or buying a Yacht a holistic usage and operation concept should be developed, since this affects so many aspects of and around the Yacht with consequences which can not be turned or changed later.
There are many aspects to be taken into account as, but not limiited to:
- Type and size of the yacht
- Place, purpose and areas of use of the yacht, in particular the question of private and / or commercial use Nationality and tax residence of the owner; Private ownership or legal entity
- VAT qualification of the yacht and VAT model
- Financing the yacht
- Registration procedures, costs and flag compliance
- Political and economic security, in particular on the question of asset management under the flag and on mortgage security
- Environmental and safety requirements and safe manning
- Nationality and tax domicile of users and guests on board
- Crew
- Efficiency of the operating cost concept
- Complex aspects, especially of international corporate and tax law; Int. Inheritance tax procedures