US resident aliens, EU nationals, BVI registry

freeradical · #1 10-04-2009

My wife and I are buying our first boat (in MD) and currently live in Puerto Rico. Since we're not US citizens yet (we're legal permanent residents) we cannot get USCG Documentation which is needed for cruising in many regions over simple state registration.
Since we're EU nationals we're considering registering the boat in the BVI.
Does anyone have info as to the pro's and con's of this registration considering we will mainly be moored in Puerto Rico ?
Any help or links would be greatly appreciated.

Zanshin · #2 10-05-2009

The BVI registration is a good one as part of the Red Ensign countries. The brokers/dealers in the BVI are used to dealing with US citizens, who would require using an IBC to complete the BVI registry. Using a company has certain advantages (particularly for US residents) but is not necessary for owners holding EU passports. The requirements for registration are not difficult to meet (mainly a survey satisfying their conditions and payment of various fees) and opening up a company is even easier.

If you are British or have an address in the UK then a pure British registration is simpler and cheaper. That is the route I that I opted for with the new boat.

freeradical · #3 10-05-2009

Zanshin,
Thanks for your reply. What are the advantages of an IBC for us residents ?
Would I need a cruising permit to stay in Puerto Rico ?
I did a bunch of research about the BVI registry and it seems fairly easy to get them what they want (documents) without having to spend big $$$ with dubious representatives but amongst the requirements you need to have a BVI national or representative to register, do you know anyone I could contact ?

Zanshin · #4 10-05-2009

The advantage of an IBC, particularly for non-american but US residents, is that Uncle Sam wants to see your worldwide income and an IBC can offer a sort of filter or buffer. In addition, when it comes to inheritance taxes one would just transfer ownership of shares instead of transferring the full value of the yacht and paying inheritance taxes on that. A visit to a professional advisor is well-worth the money spent on such consulting.

freeradical · #5 10-05-2009

would the BVI registry have any implication on getting insured in the US (well Puerto Rico) ?
Also can you recommend anyone in the BVI that could help with process ?
Also any restriction on the time the boat could spent in US waters?