If you have the plan to buy a yacht and put it into charter fleet then choosing the flag do have an impact on the charter income. The choosing of the flag will impact everything directly, from the exposure to liability, taxes and also personal privacy. In fact, picking the yacht flag will also make a huge difference in the failure or success of the charter enterprise. The flag you choose should have a significant influence. Go through 4yacht.com to get more ideas about it.
Choosing the right flag
The flag represents the country of ‘registry’. It means the government or nation under whose jurisdiction the yacht is licensed or registered. It necessarily does not have to be where you reside or your country of origin. It’s better to get registered in the country which is well-familiar with all the complexities of operating and owning a yacht for self-use or charter purpose.
Deciding to put the yacht into a charter program is a good idea to offset the expenses. However doing so will require taking more complex decisions and one of them is choosing the flag. Its better you talk to dealers who are in the business of chartering to advise you about the flag and also they will help you in choosing the charter program that suits your requirements.
Choosing the flag is a complicated matter as it involves one to know and have in-depth knowledge about international maritime law. The things one needs to consider while choosing the flag for yacht are:
- Regulation and taxation issues
- Chances of the yacht getting targeted by the authorities
- Chances the yacht will get targeted by pirates
- You need to know about bad flags and good flags
The decision should be taken after a consultation with your attorneys and tax advisors.…