Flagging a boat bought in the Caribbean??

[Salacia]

Hi Everyone,

I have question about flagging/registering a boat bought in the Caribbean and I hope someone can point me in the right direction!

We're Canadian and are planning to buy another boat most likely in the Caribbean. We'll most likely never bring the boat to Canada. We plan to cruise the Caribbean for a few years and will probably eventually pop through the Canal and cruise the Pacific again.

I am trying to find our more information about my options in regards to the best options to register the boat and avoid any unnecessary taxes, fees, etc. The best scenario would to leave the boat somewhere in the Caribbean for a year or so until we are ready to leave.

Thanks for any help,
Mark

[Vasco]

You can register the boat in Canada. All you have to pay is $300. No taxes, no GST if you don't bring it home. Process is fairly easy especially if the boat is under 12 meters. I think over 12 they require a tonnage survey. All the info is at the DOT website. Don't have the link at hand but it's easy to find. One word of advice if you do register it in Canada pick a big port like Toronto where they are used to doing this.

Found the link.
http://www.tc.gc.ca/marinesafety/Tp/...er-license.htm

[Caribsailors]

Great question! I learned from experience and it wasn't all bad.

Found my second dream girl in Grenada and eventually bought her. Being a proud Canadian I of course wanted to register her in the best county to live in according to every Canadian and a UN survey, but don't quote me on the survey.

I did register out of the port of Vancouver, as I lived in BC at the time, which was done completely through the mail while I was still in Grenada no problems.

I ended up taking a job in the Turks & Caico's Islands and then sailed here there.

While there I received a letter from the BC Gov. looking for PST which I ignored as I or the boat wasn't in the country. Well that was not the right thing to do. Well another year later, I get a letter stating the Gov had sent it to a collection agency.

Well on the phone I get. I did actually talk to a human with the BC Gov explained the boat is NOT in Canadian water and more so, BC waters, and that I would be more that willing to pay PST if that ever happened. She was most helpful. I did fax my entry and exit papers of the countries on my travels and the entry papers for the TCI.

My thoughts if I was to do it again would be to either register out of the port of Edmonton as there is no PST in Alberia (Alberta) or Panama. I did want to register her out of my home yacht club, but it was not considered a port of registration.

My experience. Do it and enjoy!

Cheers

[GordMay]

Originally Posted by Caribsailors

... Being a proud Canadian I of course wanted to register her in the best county to live in according to every Canadian and a UN survey, but don't quote me on the survey ...

Best & Worst Places to Live:

The Human Development Index (HDI), published annually by the UN, ranks nations according to their citizens' quality of life rather than strictly by a nation's traditional economic figures.
The HDI is a summary composite index that measures a country's average achievements in three basic aspects of human development: health, knowledge, and a decent standard of living. Health is measured by life expectancy at birth; knowledge is measured by a combination of the adult literacy rate and the combined primary, secondary, and tertiary gross enrolment ratio; and standard of living by GDP per capita (PPP US$).

Excerpted from
The 2007/2008 HDI Index: Statistics - Human Development Reports (UNDP)

1. Iceland
2. Norway
3. Australia
4. Canada
5. Ireland
6. Sweden
7. Switzerland
8. Japan
9. Netherlands
10. France
...
12. United States
...
16. United Kingdom
...
19. New Zealand
...
25. Singapore
...
54. Saint Kitts and Nevis
...
168. Congo, Dem. Rep.
169. Ethiopia
170. Chad
171. Central African Republic
172. Mozambique
173. Mali
174. Niger
175. Guinea-Bissau
176. Burkina Faso
177. Sierra Leone

Obviously, a salubrious climate isn’t factored in to the equation.

[Vasco]

Well the UN better have another look at Iceland.
Credit crisis triggers downturn in Iceland - International Herald Tribune

[Salacia]

Thanks!

Thanks for the replies. You've been very helpful. The last time I bought a boat out of the country I bought it in California, trucked it to Canada and then paid the taxes and registered it in Victoria. I was hoping to hear that I could still register it in Canada and skip the taxes until I import it.

Vasco - thanks for the link!

[Reality Check]

You do need to be aware, that many places in the Craib have local taxes. These Cruising taxes are often by the day and can add up quickly. If your going to be in one area for an extended stay, you may want to look into a Temporary Importation tax which can be a significant cost saver. Sailing free anywhere does not seem possible, with mooring fees, cruising fees, fuel fees, dock fees, Customs and Immigration fees... guess we should consider just getting a really long chain and anchor mid Atlantic.

[Caribsailors]

Reality Check has it right. Most if not all will require a cruising permit be purchased. I know the BVI Gov, in their infinet wisdom have implemented a new cruising fee for ALL foreign vessels. For us that that works out to almost $300 USD a month. Sorry the BVI is interesting cruising but not that interesting.

The Turks & Caicos Islands will issue a 3 month cruising permit and allow one renewal. After that the vessel will have to leave the country for 6 months or pay 10% import duty on the market value of the vessel.

Grenada issues a cruising permit to the vessel for the year for $50 USD, , as long as you are in Grenadan waters. But if you sail up to the Grenadiens and back you will need to get another permit or they did five years ago.

Cheers

[Vasco]

Originally Posted by Caribsailors

Reality Check has it right. Most if not all will require a cruising permit be purchased. I know the BVI Gov, in their infinet wisdom have implemented a new cruising fee for ALL foreign vessels. For us that that works out to almost $300 USD a month. Sorry the BVI is interesting cruising but not that interesting.

Cheers

I thought the BVI had rescinded this new tax.

[Reality Check]

BVI did rescind the NEW tax... but they still have several taxes that apply to cruising based on how long your in the area and if you use National Parks Facilities.

At present I keep my boat in the BVI most of the time and pay a yearly Temporary Import Fee of $201.00 per year which isn't bad at all, but if your in for only a month you could find your paying about the same. If you charter within the BVI you don't have to worry about it as much as it is included in your total charter cost. Just make sure you are looking at Total cost and not simply boat charter cost alone.

[Caribsailors]

Not sure now.

Cheers