Buying a Boat in the Virgin Islands

[Hannah on 'Rita T']

All At Sea has classifieds that make me willing to trade up. Don't know if they are available on line, but my guess is yes.

[Homespun]

Originally Posted by Mundial

Homespun:

I purchased a boat is St. Croix USVI several years ago. You can still find good deals out there but you have to search very carefully. What exactly are you looking for?

Mundial

We are still a couple years away from buying, but we are looking for something in the 36-40 range at or under 100k. Seems a lot of the boats down there are pretty well equipped with equipment/gear/etc. for extended cruising (solar, windgen, water makers, etc.), which are harder to come by stateside. Really, though, our main motivation for wanting to buy down there, aside from that, would be that we wouldn't have to bash down the Thorny Pat with a child.

[kevingy]

Originally Posted by kevingy

There is language in the law that says things like if you purchase in another state, territory, or DC and don't bring the goods back to Florida for 6 months, that taxes aren't due. That may allow you to avoid taxes. I think applies to goods, not a vessel.
FL Dept Rev - Use Tax on Out-of-State Purchases

I just got off the telephone with the Florida Department of Revenue. As a result, I need to update (correct?) my previous post - with potentially good news for Floridians.

The representative from the Department of Revenue ("Sandra") confirmed that the use tax exemption described on the page linked above does indeed apply to the purchase of vessels. Therefore, if a Floridian purchases a vessel in another state, DC, or a territory of the US (including, specifically, the USVI), uses (i.e., stays with) the vessel outside of Florida for six months, then returns with the boat to Florida, the purchase of the vessel is exempt from Florida's 6% use tax. At the time the boat is registered in Florida, the buyer would be required to produce documentation showing the date of the purchase and may be asked for proof that the vessel has been outside of Florida since being purchased. If purchased in the US, proving you were not in Florida might be difficult. If purchased outside the US and returning to the US after the six months, customs forms and clear-in documentation would be sufficient.

This, in effect, provides up to a 6% "discount" to Floridians who can stay out of Florida for 6 months after the purchase if you don't have to work 6% use/sales tax into your purchase budget.

[gpshephe]

Let's see $50,000 X 6% = $3000. I'm staying away for six months for sure. No sales tax in USVI. I like that. Curious what closing costs are?

Just Bill of sale? Haul out and inspection. What about lien searches?

Oh also airfare, living expenses until closed.

[jgmart99]

Does US flagged = USCG documented? Can anyone confirm that buying a USCG documented boat in the BVI will not have to pay import duties when bringing it into the US mainland? I keep getting conflicting information.

Thanks,
Josh

[Mundial]

If you purchase a boat in the US Virgin Islands you will want to stay there for a while anyway. These islands are one of the most desirable sailing destinations in the world. You have the Virgin Islands: US and British and the Spanish Virgins (Vieques and Culebra). You may even want to stay there.

Mundial..

[Privleoplag]

Originally Posted by jgmart99

Does US flagged = USCG documented? Can anyone confirm that buying a USCG documented boat in the BVI will not have to pay import duties when bringing it into the US mainland? I keep getting conflicting information.

Thanks,
Josh

Us flagged = documented.
1.5% on sail boats.. Maybe a fee n the dinghy too but at 2.4%
I believe this pertains to foreign built boats only....

Import answers: https://help.cbp.gov/app/answers/det...tering-the-u.s

[svBeBe]

We purchased our current boat in the Virgin Islands. The boat was manufactured in France. The boat was in the BVI and was registered in the British Virgin Islands Ship Registry. For some reason we had it in our heads that any boat we owned should be US Documented. We used a ship's documentation agent in Florida to handle the documentation; but we personally handled the sale of the vessel. In order for a vessel to be US Documented the paperwork must be notarized by a US notary public. So we and the previous owner sailed from Tortola to St. John and met with a notary public there. Signatures were notarized then we moved the boat over to Red Hook Bay on St. Thomas and caught a jitney bus out near the airport so we could register the boat with St. Thomas as the hailing port. It takes several months to obtain the Certificate of Documentation, but you can register the boat and receive that registration instantly in St. Thomas. We also registered the dinghy.

Then we sailed back to Tortola and cleared into the BVI using the new St. Thomas registration. The boat had been cleared out of the BVI and into the USVI under the previous owner's name as a BVI flagged vessel; it was cleared out of the USVI and back into the BVI under our names as owners and as a USA flagged vessel registered in St. Thomas.

We paid the BVI annual temporary import fee (can't remember if that was $100 or $200). The boat was docked back in her original berth in Soper's Hole on Tortola and we returned to the USA. Months later we received the US Certificate of Documentation. Then we were ready to begin cruising. There was no tax of any kind collected by authorities in St. Thomas. The registration expired after 1 year and we opted not to renew that registration because by then we were off cruising in other countries. When we eventually return to the USVI then we will again register the boat in St. Thomas. It is my understanding (at the time of our purchase in 2005) that all boats residing in USVI must be registered in USVI even if the vessel is US documented. Again, there were no taxes of any kind collected or assessed.

We have never visited the USA in our boat so have no idea what taxes, if any, would be assessed by whichever state one might decide to stay in for any length of time.

In hindsight, we were stupid to have removed the boat from the BVI Ships Registry. Our insurance options would have been much greater and much less expensive if we had left the boat registered in the BVI rather than having it US documented. We do not sail in US mainland waters and have no plans to ever do so. Insurance for outside USA is much less expensive. We just did not think it through and in our ignorance believed that any boat we owned should be US documented.

Judy

[jgmart99]

Thank you, that link was very helpful. I'd love to stay in islands longer but unfortunately have to get back to a desk here in the states way too quickly. Getting lost down there for 6 months or more sounds like a great option though!

Josh