What are sales tax, and title ramifications of buying a blue water cruiser.?

Question

Do you pay taxes where you flag it? Where you buy it? Both I am thinking over the sales taxes of buying and registering a boat in Texas or Florida and sailing it to Panama where I plan to be a resident US citizen, or buying the boat down there and registering it there.

Answer 1

If you want the fun of taking it down there buy in the States> The price and choices will be better>If a USA Citizen than have it Documented in the USA than the Coast Guard will help you if you have issues outside the country>

Answer 2

In North Carolina there is no sales tax on used boats. I keep mine US documented and dont have to pay state property tax. As a resident of a foreign country I would comply with whatever they require and follow the letter of law. You wouldnt want to risk having her confiscated. Go to this link to find out what their law says;http://www.abogadopanama.com/

Answer 3

Man... you have been around this site long enough to know better...

You are asking the right question... but to all the wrong people.

I am not about to try and give you tax information... you need a good tax attorney for that; but I will tell you that if it were me... I would register my vessel "off shore" out of Delaware... You can do this with one call, one fee, and never have to worry about it again.

As for the rest, I can tell you that once you get to your fair haven in Panama... though you may find the people "beautiful"... I don't think you will find the government officials there - quite so attractive.  In the maritime and real-estate industries they have a reputation of being... well, shall we say... about as corrupt as corrosion.

     I for one, believe happiness (or beauty - as you refer to it)  is where you make it. Not where you find it.

     It's kind of like Ponce de Leon... poor guy, he waved good by to his youth... when he sailed off looking for the fountain of it.

     I like your plans though... adventurous enough... relaxing enough... and I have a friend that did the same on the Yucatan Peninsula and loves it.

For me however, I have found on all my trips to Colon, and through the Canal... those government agents that board my vessel - all just look down right scary... kinda like they would take your head clean off, if you didn't give 'em a carton of cigarettes, or that nice bottle of wine...  

Happy & Safe Boating!

Good luck!

Answer 4

Buy and register it in Panama. States have their own sales tax schedules and I think every one has a title law now.

Most states have re-registration every three years and that's an extra expense.

The taxes also depend on the size of the boat. The longer the boat, the higher tax.

Answer 5

In the states a blue water boat is no different than a john boat with a gas motor. It get's the same registration process. The only extra might be if your state wants to hit you with a luxury tax.