Story by Andrew Holland / June 1, 2018
Occasionally we handle transactions where either a buyer or seller require a closing to occur outside of the area where the boat is currently lying. This is what we call an “offshore closing”.
The main reason that either party would request an offshore closing most often directly coincides with potential taxation or duty ramifications on the sale of the boat in it’s given location. To avoid these potential costs, the buyer and seller may agree to perform a legal offshore closing on the sale of the boat.
An offshore closing can be defined as when a boat is sailed into international waters on the agreed day of closing – the required distance offshore for closing will depend on the boats location – and finalization of the closing documents is done directly on the boat once you are in international waters. Photos are taken of the GPS coordinates and signing of the required documents, along with a photos of the signer with a copy of the days newspaper to provide photographic evidence of the time and location of the finalization of the closing documents.
Offshore closings are most often seen in states like Florida, California and in various countries in Europe.
While an offshore closing does require logistical consideration that can potentially complicate the closing process, it does present potentially advantageous legal methods to avoid tax and duty on the purchase or sale of a vessel depending on the details of the transaction.
The procedure and requirements for an offshore closing will depend on the boats current location and where she intends to re-enter the country after the closing, so if you intend to proceed with an offshore closing it is important to consult with professionals to discuss the legal requirements that must be followed.
For questions, feel free to contact the Multihull Company offices at 215-508-2704.
Dear Cynthia and Andrew,
I wanted to extend my sincere thanks to both of you and The Multihull Company team for the outstanding job you did in successfully closing the sale of our Excess 14. Despite the challenging environment — including new import tariffs and unique buyer requirements — you navigated everything with professionalism, perseverance, and efficiency.
The transaction was completed smoothly and in good time, which is a true credit to your dedication and expertise. Very well done.
Thank you again, and I wish you all the very best.
Warm regards,
Jurgen
We had an outstanding experience working with Andrew Hodgdon. From the very beginning, he demonstrated deep knowledge of the catamaran we were considering and took the time to understand exactly what we were looking for. He found us the perfect vessel that matched our needs and budget and negotiated a fantastic deal on our behalf.
What truly set him apart was he responsiveness—every question we had was answered promptly and thoroughly, and he guided us through the entire process with professionalism and care. We couldn’t be happier with the service and highly recommend him to anyone looking for a knowledgeable and dedicated yacht broker.
Awesome company that worked as my brokerage on purchasing out FP catamaran. A special shoutout to Will Miller for walking us through the process
The process of selling our boat was made very smooth by the Multihull Company and Andrew Hodgdon in particular. Andrew helped us navigate the selling process including moving our boat from Grenada to Florida to execute the sale. We would recommend working with this company, and Andrew Hodgdon in particular, without hesitation.
Very smooth process. Chuck was great and very knowledgeable about the whole process. Im happy to have had TMC to take care of all the things i didnt know about.
Andy
Successful relationships cannot exist without it. At The Multihull Company we base every relationship on a firm commitment to earning and retaining our client’s trust.
Advice of any kind is valuable only when grounded in hard-won expertise. It too, must be trustworthy. Trust and expertise define the heart and soul of The Multihull Company. We are a team of skilled professionals who thrive on providing expert, trustworthy advice and service to catamaran and trimaran sailors around the globe.
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