Customer request
We were contacted by a client who was interested in choosing a foreign country to own a yacht that was under construction in one of the European countries. The client planned to use the yacht mainly in the Mediterranean for private purposes. The client's main condition was to register the yacht in Europe, and offshore registration was not considered.
Proposed solutions
Our experts analysed the terms of delivery of the yacht, which were agreed with the manufacturer, and assessed the possible tax risks of delivering the yacht in the European Union, in particular, the issues of value added tax liabilities were worked out in detail.
Our experts also selected a number of European countries for the registration of a foreign company that would own the yacht and the jurisdictions under whose flag the yacht could be registered. When selecting the appropriate jurisdiction, many factors were taken into account, including the costs of maintaining a foreign company, the tax burden, the respectability of the jurisdiction and the benefits of registering a yacht under the flag of the relevant jurisdiction.
Result obtained by the client
Based on the results of a comprehensive analysis of a number of jurisdictions, the client chose the optimal jurisdiction for the registration of a company abroad and the subsequent registration of a yacht in this jurisdiction. Our team prepared a detailed action plan for the project and subsequently implemented the project to register a company abroad.
In doing so, a number of goals were achieved, including the delivery of the yacht at a zero rate of value added tax and no additional costs in the form of import duties and other fees.
Subsequently, the yacht was registered under the flag of one of the European jurisdictions, which enabled the client to use the yacht profitably and without any restrictions both in the waters of the European Union and around the world.
