Registration of a Yacht Owned by a Company Abroad

If you are interested in purchasing a yacht from the manufacturer or second-hand, it is customary to register the yacht owned by a company abroad.

Registering under a company abroad gives you a number of simple benefits - First, the owner of the yacht is the company and not you. In some countries the authorities do not disclose the identity of the owner of the company, which in fact gives you complete discretion as to the identity of the owner of the yacht. In fact the only way it will be possible to understand who owns the yacht is if you provide yourself with the documents proving your ownership in the company that owns the yacht.

Second, the mere registration of the yacht in the name of the company voids your legal liability in the event that the yacht has caused any damage. This actually greatly reduces your risk of being sued, and in fact a lawsuit against you will have to be much more complex, sophisticated, and the plaintiff will have to go a long way to win a lawsuit against you.

Another advantage is that sailing under a company abroad will also be under a foreign, non-Israeli flag, so that sailing on the high seas will be much safer for you personally. It can be agreed that the State of Israel has many enemies, and with some of them it is advisable not to encounter the open sea, when the closest person who can help is tens or hundreds of kilometers away. By registering a yacht owned by a company abroad, you will also be able to visit places that you could not sail to with an Israeli flag. There are different relations between different countries - the US flag will evoke a different attitude than the flag of the Seychelles.

The transfer of ownership of the yacht is also done in a very simple way - the thing that is sold is the company's shares and not the yacht, so there is no need to make a complex registration change in the authorities regarding the identity of the owner, because the owner of the yacht remains the same owner.

Finally, it should be taken into account that there are certain tax benefits in the EU when the yacht is registered under a non-European company. The EU may charge VAT and customs if the yacht is moored in EU waters, but if the yacht is owned by a company abroad, it can moor in EU waters for 18 consecutive months!

Yachts are usually not in the port of Israel. It is possible in principle to bring the yacht to a port in Israel, but this is an import, which will require you or your company abroad for VAT within 3 months from the moment of import, unless the yacht leaves Israel before that time.

In conclusion, as written above, the accepted and common way of purchasing a yacht is to register the yacht owned by a company abroad.

In our office, we help design the contract for the purchase of the yacht, open the company abroad and register the yacht in the country abroad, in a fast, knowledgeable and experienced manner.

To open a gobal company for yacht registration, click here.