TAX QUESTION REGARDING A YACHT
Can a vessel be bought without paying taxes on the sale?
Question: I am residing in the US and want to buy a yacht from a company established in the Netherlands Antilles (Curacao). The yacht is registered in a foreign country as a private yacht. Is it possible to purchase the vessel without paying taxes on the sale? In Florida, non resident purchasers who remove the vessel from Florida waters within the designated time frame are exempt from sales and use tax. Alternatively, they can close the deal in international waters (which is defined as 12 nautical miles and beyond) and avoid tax. Do you have a similar arrangement in the Netherlands Antilles?
Answer: A sales tax of 5% will be due depending on the seller. If the seller is an entrepreneur he will have to charge 5% OB, if he is a private person and just selling his own yacht no sales tax will be due. No other Netherlands Antilles taxes will be due by a non resident purchaser.
Karel Frielink
Attorney (lawyer) / Partner
