Help with boat registration

[Renis]

I'm Lithuanian citizen, currently living in US. That means I cannot get USCG registration. Anybody knows what is my best bet to cruise in Carribean and then sailing to Europe or somewhere else. Can I get EU registration being here in US. Should I get Lithuanian registration or let's say UK. Can I leave US having no registration at all? What about VAT? My budget is very limited, so I appreciate all money saving suggestions. Thanks.

[David M]

Have you looked into Lithuanian documentation? You cannot legally get underway without your vessel being registered or documented with a country.

There are countries that allow foreigners to flag their vessel under their country. I would try a Google search on that topic.

[Renis]

I will try to find out, if being in US I can get lithuanian registration. Unfortunally, my country has 18% VAT. Do I have to pay US sale taxes, if I intend to get lithuanian registration?

[Jim Thomsen]

Hi Renis,

I have met a couple of Europeans who had registered their boats in other countries (I don't want to guess what flags they were, but I think one was the Cook Islands and one was somewhere in the Caribbean. Take David's advice and do a goodle search). That way they did not have to pay VAT. You can then even sail in Europe, as long as you are NOT a resident of the EU, as I understand it, and not pay VAT (following the 18 month rule).
There is no US sales tax, but each state is different so you need to check your state or the state you will buy the boat in.

Jim

[Renis]

Unfortunally ( or fortunatelly ) I'm citizen of EU. Entering the EU gave as economy boost, but It also gave us lot's of regulations and enforcements . As far as I know the EU doesn't accept state registration. All carribean countries accept. If I'm wrong,- please let me know. Since I'm citizen of EU, I have to pay VAT before entering EU waters, even if I'm under flag of convienence. And how do they determine value of my boat?( since I'm not in EU waters yet).

[Alondra]

Money saving budget leaves you almost outside of europe I would say. Entering Eurpean waters can make you liable for VAT. They determine the yachts value pending on the place you get to. I would say, Islands are best bet. Anyway, harbourfees will mostly be high so head for Turkey where it is still cheap and Greece. Flags can be bought anwyhere, registration is needed in most countries as they ask for your ships papers and sometimes insurance.