Thanks for the explanation, it now makes sense to me why billionaires who live in the US don't fly our flag and I am not all that surprised that we have different rules (just look at our governing bodies right now). I really enjoy all your videos, thanks for posting them.
I like the informal 'chat' format. Love your stuff. I'll never own one or be lucky enough to embark on a voyage with one. But I really enjoy your channel.
As an American working on a yacht, I seldom ran into other American crew members. But that is one of the great things about working on a yacht, you get to meet really great people from all over the world. Sweet Riva!
@@oa127 Various merchant marine academies here in the U.S. The U.S. Merchant Marine Academy is in Kings Point, New York. In my state, California, we have a first rate academy at Cal Maritime in Vallejo near San Francisco. It's part of the Cal State University system.
@@oa127 as a retired navy officer and a graduate of a merchant marine school (NY Maritime); and a former yacht captain, your best bet is to google yacht training and fort lauderdaie. There are several companies offering training that is recognized by the UK . You’ll need STCW training or RYA Yachtmaster Oceans, or both/more. Try MPT and Bluewater. Check their websites.
The Jones Act is still the biggest impediment, since it requires a U.S. flagged vessel be built in the U.S. There are exceptions, but they did require an Act of Congress (seriously) to exempt a foreign-built vessel from joining the U.S. registry. One of the most notable U.S. flagged megayacht, *Limitless*, was built by Lurssen in Germany, but thanks to Section 1121 of the Coast Guard Authorization Act of 1996, was specifically exempted and reclassified as a 300 gross ton vessel, even though in reality it exceeded 2,000 GT. A lot of political hoops to jump through, but I admire the owner for his insistence on flying the Stars and Stripes early with such a beautiful and visible vessel. The recently enacted Small Vessel Waiver program offers the same foreign-built exemption that wasn't available back in 1996. About time. Also, a U.S. flagged vessel is subject to state one-time sales and annual use, registration and property taxes. Rhode Island, as one extreme example, levies no sales tax and only charges $310 annually for registration for large yachts and allows non-residents (remember John Kerry?) to register their boats in-state. Compare that with California and their near 10% sales tax and 1.1% annual property tax rates. You'd have to be insane to homeport your $100M megayacht anywhere in California. With all the pain that surrounds getting onto the U.S. registry, you do get some benefits: Ostensible protection by the U.S. Navy and Coast Guard worldwide. Plus you can freely move between U.S. ports without paperwork.
Also the U.S. Built requirement. U.S. vessels take many far longer to be built for exorbitantly higher prices when compared to vessels made overseas with newer technology.
Where other channels show how it is to live, work or have fun on a yacht, this channel goes deeper into various subjects. I like it's educational and informative style. Thank You and until the next video.
Yes, that's really interesting. Do owners keep the name, or do the buyers just want their own choice of name? It seems a shame to change the name of a famous yacht.
Naming a vessel is owner's choice. Not much to it really. Some owners like Usmanov prefer to retain the name for their newest yacht, while some dont. As long as there isn't another vessel on the flag register with the same name, the owner is good to name it as they wish.
I currently work on the M/V Pride of America. Per US law up to 25% of the crew is permissible to be NRAC (non-resident alien crew). We only have approximately 900 crew in full operation. In the early days, with three ships, we did have problems finding enough crew. Though major cause for the reduction to one ship was because of supply/demand. We had too much for the demand for the Hawaiian market. Aside from this unfortunate mess of COVID-19, 1 or 2 midsize US flag ships would meet the normal demand for this market. Staying in the Hawaiian islands for a week is preferred to spending a week transiting from Mexico to do less.
Thank you for your post. The Jones act requires the vessel to be made in the US for new vessels. If vessel is over 3 years old it can apply for an exemption. Is your vessel over 3 years old?
Thanks for explaining this so well while still making it simple for viewers with little Yachting knowledge. Always curious about this and always tried to research and got very confused.
Always a great and informative and entertaining video. I am a 35 year fishing boat owner operator and you have taught me so much. Keep on making these great videos. Still have so much to learn. Paca Paca
Well done again. Topics covered from Life-Health-Safety to billionaires filching on taxes, and all leads to the flagging, fascinating as usual. Almost went to Strathclyde, thought about marine architecture but took another path. Design is a creative challenge but always comes back to code and engineering. There again that is why coolest architecture is often not in the US.
Your Utubes are fascinating. I'm a land bound NYC licensed Tour Guide and information maven. Started watching because of Russian boat arrests. Now.. I'm hooked on your easy breakdowns of industry facts and figures. BRAVO. Y U
If I remember correctly a lot changed in the US when under the Carter administration the tax laws were changed re large yachts. As a result the yacht building industry was hit hard as many owners decided to buy overseas built boats.
I found your channel because of the war in Ukraine, we have family there so we don’t take more of an interest in the topic. So I watched a couple of videos about the boats being seized. Then off I went down the rabbit hole…a click here, a click there and I was fascinated! So much information about a subject I didn’t even know existed. It definitely appeals to the mild autistic spectrum side of me 😀 It’s also lovely to see nice scenery with sunshine and beautiful clear blue skies while I’m home in the uk in the cold. I have indulged in your videos while it snowed 😂 I almost just closed the curtains and pretended that it wasn’t really snowing 😂
Leslie Wexford of Victoria Secret fame who owns m/y Limitless which is 3000GT is U.S. flagged. He had to go through an act of Congress in 1997 to get it registered in the U.S. I believe his yacht will always remain the largest yacht registered in the U.S. It's 96.25 meters.
Yes as I said in the video you don’t see many and offered the reason why. But since 2018 there has been a way forward for people who want to register their yachts in the US.
The whole tax thing is really difficult. Even smaller vessels inside Europe seems to favor a Malta registration. Not sure if it's the VAT or another added tax deciding it.
Yes, Malta has the lowest superyacht VAT rate in the EU. So, if you want an EU registered vessel, for instance for Mediterranean charter, that’s the place to go.
Interesting! Your channel is appreciated. Nothing better than to be clued-up when you seat at the marina’s terraces mesmerising those Architecrural and engineering masterpieces ⭐️⭐️⭐️⭐️⭐️
On the name of MY Skat, being half Danish recognize that the name has the same meaning as darling/honey in English but I was missing the link. Here is however the connection from Wikipedia: The owner is Charles Simonyi, a former Software Engineer from Microsoft and the fifth space tourist. The yacht is 71 metres (233 ft) long. Simonyi once had a Danish girlfriend who called him skat, literally "treasure", a common term of endearment similar to "honey" in English.
8:40 Hi. I worked for an American flagged cruise ship company for 3 years. You hinted about why American flagged ships are rare. I can shed some more light on this, which I think will apply to yachts. As an American flagged ship, it must be crewed by Americans. This also includes US labor laws, which have a much higher standard than most other places, such as Panama, Cayman Islands etc. This is why, on big cruise companies, they are employed by people from SE Asia, South America, Eastern Europe. The big cruise ship companies, can pay less than an American flagged ship, but still pay high enough to draw people from these regions. Also note that because of maritime law, these workers have what is essentially an endangered servitude sort of relationship. Say you are from the Philippines. You are a cook. You will work 6 days a week, 10 hours a day for 6 month contract. The company will hire you, and have you sign paperwork in say Miami, basically somewhere far from home. If the company terminates you, they are only obligated to get you to where you signed the paperwork, in this case Miami. So for the terminated employee, Miami to Philippines is on you, which is expensive and could be months of pay. Knowing this, “foreign” crew are heavily discouraged of quitting and not completing their contract. Lastly, if a ship is not American flagged, like all the big cruise ship company ships are, there are transportation regulations they must follow. Basically one of them, is that they are not allowed to start, end cruises in a US port. For Alaska for example, this is why non US flagged ships, start, end Alaskan cruises in Vancouver B.C. This is to prohibit non US flagged companies, from competing with US flagged transportation companies.
... a glorious endless Buffet of info ... deeply informative for me as I'm new here ... I am plunging right in to everything SuperYacht .. I've sent a recommend to my youngest brother, who is a model Ship builder, such as I ... he's been into ancient ships; Egypt to Chinese ... but, I must mention how much I enjoy your Riva Aquarama; Italian flag, in the background ... nice wood ... reminds me of the old (Ed) Monk Yachts from here on the West Coast of Canada ... Monk as in surname, not occupation ... last one seen tragically abandoned locally; a real mess ... so sad ... a Monk Sedan 46 ft. 1963.... one recently seen for $55.000.00 US Washington State ... gorgeous wood, I just love the woods ...
So very interesting on the tax laws and flags of confidence which I had heard about but not understood fully. Thank you for your very interesting insight of the super yacht world.
Lol on Riva! My brother was asking a girl out when he was still an impoverished uni student. She said yes if he turned up on the date with a Jag. He drove up in his rusting old Holden , & a toy Matchbox Jag in his pocket! She laughed n went out with him!
My father bought my sister a Matchbox Ferrari that matched the one in Magnum PI when she turned 16. He told her that was the only Ferrari he would ever be able to afford to buy her. We were all big fans of the show when it originally aired.
Very interesting and informative. Thanks for putting that together for us. I worked on a Incat catamaran in Florida that was made on an Indian reservation so we could have an Australian boat in the us and pay little taxes as the Indian reservation was tax free. Now there were some taxes paid somewhere but it was a lot lower for sure.
@@thedwightguy here was my motivation to register my cat In the Bahamas. I’m also a pilot and in one of my flying magazines there was an article that customs wanted to be empowered to SHOOT DOWN suspected drug planes. The author pointed out that they would only be able to shoot down US registered planes and all drug planes would now be foreign registered and customs would end up shooting down dentists lost looking for Key West.
When I first got in the business there was quite a few, but 20 years later good luck finding one. My old boss and friend was one of the last that I knew of,he is a proud American and kept his flagged in the States on principal. But even he flagged his new yacht offshore. Although he has kept his 87ft Hatteras flagged in the US because they fish a lot of tournaments.
We have Crescent Yachts and other builders in the Vancouver area of BC, Canada. Most of the resident yachts are registered in the British Virgin Islands.
Very informative. Really enjoy your explanations. Of course the US and other countries have ridiculous tax laws which prevents owners from displaying their country's flag. It's all about money.
I saw that Riva in the background, and, thought, “ geez he bought himself a model of the Riva, to tell everyone that he now bought himself a Riva!!!” Interesting video of Flags and The Russian couple and their son!!
eSysman thank you so much for this video. Im STCW Chief Engineer Unimited and to be honest i didnt know a lot of thing that you very well explains in this video. I have some questions but i want to watch all your videos before ask. Thank you so much.
How do they enforce the maximum guest limit on yachts? What kind of legal troubles will owners find themselves in if they are chronically over the limit? I wouldn't think monetary fines would not be much of a bother to most owners.
Yes, the one US flagged ship is due to the Jones Act that does not allow foreign ships to "trade" in US routes. (if you ever noticed -- ALL cruises ALWAYS have a foreign port of call, like Vancouver or Ensenada or Bahamas) en.wikipedia.org/wiki/Merchant_Marine_Act_of_1920 The US flagged ship is out in the Hawaiian chain and there isn't a convenient foreign port in range or they wouldn't be flagged US. It doesn't actually have to be 100% US citizens as crew, but the Captain must be American and either 50 or 75% of the rest of the crew. (can't remember) US minimum wages, workplace rules, ect. Plus USCGs rather strict commercial ship rules. It is an expensive ship compared to most others. For obvious reasons.
My wife has a former school mate who works on a 100 meter yacht, and that yacht has a sister yacht that’s 300 feet (sorry don’t know meter length). But they’re both REALLY NICE yachts.
One clarification about exiting EU and returning there right after: This is a way to avoid paying EU VAT on the vessel. Even then the vessel can stay in EU area only for 18 months, or the VAT has to paid. So the operator must be careful to exit EU in less than 18 months to awing been hit with up to 26% tax. Many owners of smaller yachts (owner operated) choose to go to Malta first, because there you can make a charter company which owns the yacht for one year, tax free. After that the yacht can be sold ( to the real owner) with only 7% VAT. Compared to over 20% VAT taxation in many Eu countries the savings are considerable, and after paying this small Malta VAT you can fly your home country flag and are free to stay in EU indefinitely.
I don't care what they say I'm going to 'hire' you Esysman. I'll double whatever your making now. Just hold on,it's going to take me a minute to meet those qualifications 😂. very interesting and informative video!
I think a lot of us would like you to please expand on this video. The taxes and crew designations are never covered on any other channel that I've found from a crew member or owners perspective.
FYI - Ive noticed super yacht NAIA has been anchored in front of the Andaz Hotel on the Papagayo peninsula Costa Rica for the last 4 weeks. Not in the marina but just anchored off shore.
great topics last thing you mentioned was very important "under the flag you decide which work contract the crew works" nobody would work under italian or french rules, because they would be paid less - and no Boss would hire people in that way because burocracy and regulations are so strict
Just to clarify Cayman, BVI, Bermuda, Gibraltar etc are British Overseas Territories not Commonwealth - hence Red Ensigns. IOM, Jersey and Guernsey are Crown Dependencies also entitled to the Red Ensign. Some Commonwealth countries remain Realms - Australia, NZ, Jamaica, Canada, PNG etc and have badged red ensigns. Finally there is the blue ensign essentially for public vessels with naval crews or members of various Royal Yacht Clubs.....
Thanx learned alott n enjoy how u explain everything so calmly n very understanding of n explaining! Was so easy to understand u r my favorite to explain u r very notaligable n no what u r telling us thanx
I like the certifications and the levels. I would be interested in learning about that ....well also because I like puzzels and i still have a dew unfinished "puzzels" concerning some historic shipwrecks that i hope to better understand in the future. Thank you for concidering my opinion. C&E*Ca.USA
You have 1 more Riva than I do. I'd love an episode about Rivas. I really don't know much about them, and as you may suspect they are not common in America, sort of like how Europe does not often get Chris Crafts.
Pride of America is US flagged. When I had a US Yacht (51 foot passenger sailboat), I had to have it built in the US to Coast Guard specifications. Now THAT cost a frigging fortune, so I can't imagine what extra dollars a 50 meter would incur.
So far as a know the reason for NCL flagging their ships as American was to skirt a law which was intended for use on the Great Lakes. Going back to the 1880s (or something like that) foreign flagged commercial vessels intended primarily for passengers were prohibited from traveling directly between US ports. The law required that a stop was made in a foreign port en route. The intention was to block Canadian ferry companies, who had a lower overhead (the financial sort, I should specify) from undercutting US companies servicing American cities.
It's actually a broader and older concept known as "cabotage", and enacted in the Jones Act in the U.S. Cabotage prevents commercial ships and aircraft transporting cargo or passengers from travelling between two points inside a foreign country. Rudimentary cabotage was instituted by King Richard II in 1381.
Excellent video just curious if you could do another video based off your knowledge of the differences in fuel prices around the world (what are the best prices) with route choices and why they would choose particular places over others to sail to
As a Brit who travelled to the USA on business on and off for a few years, I believe your laws are made just to pi** off the rest of the world at your immigration desks.
@@trentdawg2832 I see so if Trump wins, its a fair election free from fraud and, if he loses, its cheating. Literally 50 states with 50 election commities and 50 Rep and Dem governors are all in on it.
Heads up, the Y3 chief limitations are 500gt-3000Kw not 3000gt-3000Kw. Your posts are good, keep at it. When people ask me what its like to work on a super yacht I send them a link to one of your vlogs. Cheers.
Very interesting subject. You answered a lot of questions that had come to mind. Another question I had...what is the story about yachts that fly the White Ensign? Thanks for another well done video.
I may be wrong. If so please correct me. Even ordinary Knights can't fly the white ensign. You have to be invited to be a member of the Royal Yacht Squadron.
0:22 Esysman: Its about the way superyachts are flagged Me listening: "Its about the way superyachts are flamed" and thinking "this will be a video to break the nautical internet.
Thanks for that interesting information... I have a couple of questions not related to flags though... the first one is about moving alcohol around the world on a yacht for example if you are in Europe and have a substantial wine cellar, sprits etc and move to the US (or anywhere else) do you have to get rid of it all before going from country to country or do you have to pay import taxes on what you have with you etc... the other one is about growing food onboard... say there was a hydroponics room where fresh lettuce and herbs etc were grown... have you ever heard of that and can it be done?
When a superyacht is launched, how long does it have to get out of EU waters to have the tax waived (hours, days, so many kilometers traveled)? How long does it have to be out of EU waters to qualify for the waived tax [Overnight or hours]? How is the proof documented that they were out of EU waters? Is the tax waived completely (so they never have to pay it) or is it a delayed or partial payment?
A yacht intended to be exported by the new owner can stay in the EU for up to six months beforehand. VAT (European sales tax) would only become payable if the yacht were permanently returned to the EU at a later date, otherwise there is no VAT to pay. A yacht can later come back and be "temporarily" admitted for up to 18 months without having to pay the tax, but stay one day over that time limit and you'll have to pay the tax.
Yeah I learned about the taxes and hiring the crew and all of that stuff the hard way. Love you channel by the way, just stumbled onto it a few weeks ago
Follow-up question on "dodging COVID19 on your yacht": If you cant go ashore. How long before you get bored and what do you do onboard to avoid it? (Isn't visiting different ports a large bit of the experience). Thanks in advance.
US regulations were put in place to protect US seamen, but all it's done is to create severe restrictions. I had a 35 foot sailboat that was officially registered as a US yacht, but I didn't have any issues. 😊
In the airplane world pilots need to have licenses from the country the aircraft is registered in to legally fly. Individual regs and licensing seems to be common among countries. Also think some has to do with job protections and union pressure.
Super funny guy as are most Liverpudlian’s .I’m ex Merchant Navy from Wales 70-80s sailed with a few Scousers in my time good 👍🏼 lads.Living near San Francisco now
Thanks for the explanation, it now makes sense to me why billionaires who live in the US don't fly our flag and I am not all that surprised that we have different rules (just look at our governing bodies right now). I really enjoy all your videos, thanks for posting them.
I like the informal 'chat' format. Love your stuff. I'll never own one or be lucky enough to embark on a voyage with one. But I really enjoy your channel.
As an American working on a yacht, I seldom ran into other American crew members. But that is one of the great things about working on a yacht, you get to meet really great people from all over the world. Sweet Riva!
Where would Americans go to begin training other than Navy?
@@oa127 Various merchant marine academies here in the U.S. The U.S. Merchant Marine Academy is in Kings Point, New York. In my state, California, we have a first rate academy at Cal Maritime in Vallejo near San Francisco. It's part of the Cal State University system.
@@oa127 as a retired navy officer and a graduate of a merchant marine school (NY Maritime); and a former yacht captain, your best bet is to google yacht training and fort lauderdaie. There are several companies offering training that is recognized by the UK . You’ll need STCW training or RYA Yachtmaster Oceans, or both/more. Try MPT and Bluewater. Check their websites.
Why so few US flagged yachts?
* The Jones Act
* US labor laws
* US immigration laws (for non US crew)
* US safety regulations
* US liability laws
* US taxes, also.
@@grondhero Good point.
You can not go to Cuba.
@@RodneyLenker Cuba is nice, but for a super yacht Cuba isn't a great destination.
The Jones Act is still the biggest impediment, since it requires a U.S. flagged vessel be built in the U.S. There are exceptions, but they did require an Act of Congress (seriously) to exempt a foreign-built vessel from joining the U.S. registry. One of the most notable U.S. flagged megayacht, *Limitless*, was built by Lurssen in Germany, but thanks to Section 1121 of the Coast Guard Authorization Act of 1996, was specifically exempted and reclassified as a 300 gross ton vessel, even though in reality it exceeded 2,000 GT. A lot of political hoops to jump through, but I admire the owner for his insistence on flying the Stars and Stripes early with such a beautiful and visible vessel.
The recently enacted Small Vessel Waiver program offers the same foreign-built exemption that wasn't available back in 1996. About time.
Also, a U.S. flagged vessel is subject to state one-time sales and annual use, registration and property taxes. Rhode Island, as one extreme example, levies no sales tax and only charges $310 annually for registration for large yachts and allows non-residents (remember John Kerry?) to register their boats in-state. Compare that with California and their near 10% sales tax and 1.1% annual property tax rates. You'd have to be insane to homeport your $100M megayacht anywhere in California.
With all the pain that surrounds getting onto the U.S. registry, you do get some benefits: Ostensible protection by the U.S. Navy and Coast Guard worldwide. Plus you can freely move between U.S. ports without paperwork.
Actually that crew requirement (all us on us flag) is the reason why us commercial shipping is basically dead.
Which is ironic, since the purpose of the act was to protect US shipping.
Also the U.S. Built requirement. U.S. vessels take many far longer to be built for exorbitantly higher prices when compared to vessels made overseas with newer technology.
Also other countries are subsidizing theirs. In fact this is starting to happen in aviation too.
I get these laws are ment for safety but it just sounds like there charging yacht owners for anything they can.
It's just criminal government doing what they do best.
@@HorizonsleatherBlogspot2012
ORGANIZED CRIME SYNDICATE
"laws are ment for safety..." They never are.
I agree over charging too many fees
Where other channels show how it is to live, work or have fun on a yacht, this channel goes deeper into various subjects.
I like it's educational and informative style. Thank You and until the next video.
Thanks for explaining that so well. I always wondered about the flags.
Bow flag represents the area you are visiting.
It’s not how big your Riva is, it’s how you enjoy it ! 😂
Sorry man size matters. The motion of the ocean does matter but it takes a long time to get to China in a rowboat
I like mine baked in butter and squeeze a lemon on it. With potatoes.
Thanks for the video. I would also love to know more about naming ships and renaming them when owners switch.
Yes, that's really interesting. Do owners keep the name, or do the buyers just want their own choice of name? It seems a shame to change the name of a famous yacht.
Naming a vessel is owner's choice. Not much to it really. Some owners like Usmanov prefer to retain the name for their newest yacht, while some dont.
As long as there isn't another vessel on the flag register with the same name, the owner is good to name it as they wish.
I currently work on the M/V Pride of America. Per US law up to 25% of the crew is permissible to be NRAC (non-resident alien crew). We only have approximately 900 crew in full operation. In the early days, with three ships, we did have problems finding enough crew. Though major cause for the reduction to one ship was because of supply/demand. We had too much for the demand for the Hawaiian market. Aside from this unfortunate mess of COVID-19, 1 or 2 midsize US flag ships would meet the normal demand for this market. Staying in the Hawaiian islands for a week is preferred to spending a week transiting from Mexico to do less.
Thank you for your post. The Jones act requires the vessel to be made in the US for new vessels. If vessel is over 3 years old it can apply for an exemption. Is your vessel over 3 years old?
Thanks for explaining this so well while still making it simple for viewers with little Yachting knowledge. Always curious about this and always tried to research and got very confused.
Very interesting! I've always wondered why this is the case. I suspected it had to do with taxes, but I was not aware of all the other factors.
Always a great and informative and entertaining video. I am a 35 year fishing boat owner operator and you have taught me so much. Keep on making these great videos. Still have so much to learn. Paca Paca
thank you, for your simple explanation of an often very complex set of rules and regs in place for yacht ownership
Well done again. Topics covered from Life-Health-Safety to billionaires filching on taxes, and all leads to the flagging, fascinating as usual. Almost went to Strathclyde, thought about marine architecture but took another path. Design is a creative challenge but always comes back to code and engineering. There again that is why coolest architecture is often not in the US.
Very interesting & informative, I didn't know there was so much to it. Stay Safe !!
Your Utubes are fascinating. I'm a land bound NYC licensed Tour Guide and information maven. Started watching because of Russian boat arrests. Now.. I'm hooked on your easy breakdowns of industry facts and figures. BRAVO.
Y
U
If I remember correctly a lot changed in the US when under the Carter administration the tax laws were changed re large yachts. As a result the yacht building industry was hit hard as many owners decided to buy overseas built boats.
I found your channel because of the war in Ukraine, we have family there so we don’t take more of an interest in the topic. So I watched a couple of videos about the boats being seized. Then off I went down the rabbit hole…a click here, a click there and I was fascinated! So much information about a subject I didn’t even know existed. It definitely appeals to the mild autistic spectrum side of me 😀
It’s also lovely to see nice scenery with sunshine and beautiful clear blue skies while I’m home in the uk in the cold. I have indulged in your videos while it snowed 😂 I almost just closed the curtains and pretended that it wasn’t really snowing 😂
Great video, really interesting. If only i'd known about this career sooner!!
Thanks for your work, always informative.
Leslie Wexford of Victoria Secret fame who owns m/y Limitless which is 3000GT is U.S. flagged. He had to go through an act of Congress in 1997 to get it registered in the U.S. I believe his yacht will always remain the largest yacht registered in the U.S. It's 96.25 meters.
Great video as always. Your experience and knowledge make this a stand out channel.
Superyacht "Usher"... 481 tons... hailing port is Miami and U.S. flagged. Currently moored in Annapolis... made me happy to see her there!
Yes as I said in the video you don’t see many and offered the reason why. But since 2018 there has been a way forward for people who want to register their yachts in the US.
The whole tax thing is really difficult. Even smaller vessels inside Europe seems to favor a Malta registration. Not sure if it's the VAT or another added tax deciding it.
Yes, Malta has the lowest superyacht VAT rate in the EU. So, if you want an EU registered vessel, for instance for Mediterranean charter, that’s the place to go.
Interesting! Your channel is appreciated. Nothing better than to be clued-up when you seat at the marina’s terraces mesmerising those Architecrural and engineering masterpieces ⭐️⭐️⭐️⭐️⭐️
For all the US Flagged vessels I have boarded at sea, the only nationality we checked on was the Captain. And this was on commercial vessels.
Thanks for a well thought out and thorough answer.
On the name of MY Skat, being half Danish recognize that the name has the same meaning as darling/honey in English but I was missing the link. Here is however the connection from Wikipedia: The owner is Charles Simonyi, a former Software Engineer from Microsoft and the fifth space tourist. The yacht is 71 metres (233 ft) long. Simonyi once had a Danish girlfriend who called him skat, literally "treasure", a common term of endearment similar to "honey" in English.
I've talked about this in other videos such as the videos about Skat.
You answer questions to topics I have not thought to ask. Great videos . Thank you
Very interesting, great as usual, keep up the great work.
Congratulations on your Riva. It’s beautiful. 😍
Very well done and very informative. Thank you for making it.
8:40 Hi. I worked for an American flagged cruise ship company for 3 years. You hinted about why American flagged ships are rare. I can shed some more light on this, which I think will apply to yachts.
As an American flagged ship, it must be crewed by Americans. This also includes US labor laws, which have a much higher standard than most other places, such as Panama, Cayman Islands etc. This is why, on big cruise companies, they are employed by people from SE Asia, South America, Eastern Europe. The big cruise ship companies, can pay less than an American flagged ship, but still pay high enough to draw people from these regions.
Also note that because of maritime law, these workers have what is essentially an endangered servitude sort of relationship. Say you are from the Philippines. You are a cook. You will work 6 days a week, 10 hours a day for 6 month contract. The company will hire you, and have you sign paperwork in say Miami, basically somewhere far from home. If the company terminates you, they are only obligated to get you to where you signed the paperwork, in this case Miami. So for the terminated employee, Miami to Philippines is on you, which is expensive and could be months of pay. Knowing this, “foreign” crew are heavily discouraged of quitting and not completing their contract.
Lastly, if a ship is not American flagged, like all the big cruise ship company ships are, there are transportation regulations they must follow. Basically one of them, is that they are not allowed to start, end cruises in a US port. For Alaska for example, this is why non US flagged ships, start, end Alaskan cruises in Vancouver B.C. This is to prohibit non US flagged companies, from competing with US flagged transportation companies.
... a glorious endless Buffet of info ... deeply informative for me as I'm new here ... I am plunging right in to everything SuperYacht .. I've sent a recommend to my youngest brother, who is a model Ship builder, such as I ... he's been into ancient ships; Egypt to Chinese ... but, I must mention how much I enjoy your Riva Aquarama; Italian flag, in the background ... nice wood ... reminds me of the old (Ed) Monk Yachts from here on the West Coast of Canada ... Monk as in surname, not occupation ... last one seen tragically abandoned locally; a real mess ... so sad ... a Monk Sedan 46 ft. 1963.... one recently seen for $55.000.00 US Washington State ... gorgeous wood, I just love the woods ...
So very interesting on the tax laws and flags of confidence which I had heard about but not understood fully.
Thank you for your very interesting insight of the super yacht world.
Lol on Riva!
My brother was asking a girl out when he was still an impoverished uni student. She said yes if he turned up on the date with a Jag.
He drove up in his rusting old Holden , & a toy Matchbox Jag in his pocket!
She laughed n went out with him!
My father bought my sister a Matchbox Ferrari that matched the one in Magnum PI when she turned 16. He told her that was the only Ferrari he would ever be able to afford to buy her. We were all big fans of the show when it originally aired.
Very interesting and informative. Thanks for putting that together for us. I worked on a Incat catamaran in Florida that was made on an Indian reservation so we could have an Australian boat in the us and pay little taxes as the Indian reservation was tax free. Now there were some taxes paid somewhere but it was a lot lower for sure.
I’m a US citizen and have a catamaran sailboat registered in the Bahamas. Because it is far safer from US authorities abuse being foreign registered.
@@annsheridan12 not any more.
@@thedwightguy here was my motivation to register my cat In the Bahamas. I’m also a pilot and in one of my flying magazines there was an article that customs wanted to be empowered to SHOOT DOWN suspected drug planes. The author pointed out that they would only be able to shoot down US registered planes and all drug planes would now be foreign registered and customs would end up shooting down dentists lost looking for Key West.
I was watching and listening to this video like I was studying for a test! Lol
Oh crap another test?
When I first got in the business there was quite a few, but 20 years later good luck finding one. My old boss and friend was one of the last that I knew of,he is a proud American and kept his flagged in the States on principal. But even he flagged his new yacht offshore. Although he has kept his 87ft Hatteras flagged in the US because they fish a lot of tournaments.
We have Crescent Yachts and other builders in the Vancouver area of BC, Canada. Most of the resident yachts are registered in the British Virgin Islands.
Very informative. Really enjoy your explanations. Of course the US and other countries have ridiculous tax laws which prevents owners from displaying their country's flag. It's all about money.
I saw that Riva in the background, and, thought, “ geez he bought himself a model of the Riva, to tell everyone that he now bought himself a Riva!!!” Interesting video of Flags and The Russian couple and their son!!
eSysman thank you so much for this video. Im STCW Chief Engineer Unimited and to be honest i didnt know a lot of thing that you very well explains in this video. I have some questions but i want to watch all your videos before ask. Thank you so much.
How do they enforce the maximum guest limit on yachts? What kind of legal troubles will owners find themselves in if they are chronically over the limit? I wouldn't think monetary fines would not be much of a bother to most owners.
Yes, the one US flagged ship is due to the Jones Act that does not allow foreign ships to "trade" in US routes. (if you ever noticed -- ALL cruises ALWAYS have a foreign port of call, like Vancouver or Ensenada or Bahamas) en.wikipedia.org/wiki/Merchant_Marine_Act_of_1920
The US flagged ship is out in the Hawaiian chain and there isn't a convenient foreign port in range or they wouldn't be flagged US. It doesn't actually have to be 100% US citizens as crew, but the Captain must be American and either 50 or 75% of the rest of the crew. (can't remember) US minimum wages, workplace rules, ect. Plus USCGs rather strict commercial ship rules.
It is an expensive ship compared to most others. For obvious reasons.
Thank you so much for the super great information you provide !!!
Always appreciate your time and information...stay safe..
Very interesting and a model of clarity. Enjoyed that.
Thanks for covering that, I had always wondered
My wife has a former school mate who works on a 100 meter yacht, and that yacht has a sister yacht that’s 300 feet (sorry don’t know meter length). But they’re both REALLY NICE yachts.
One clarification about exiting EU and returning there right after: This is a way to avoid paying EU VAT on the vessel. Even then the vessel can stay in EU area only for 18 months, or the VAT has to paid. So the operator must be careful to exit EU in less than 18 months to awing been hit with up to 26% tax.
Many owners of smaller yachts (owner operated) choose to go to Malta first, because there you can make a charter company which owns the yacht for one year, tax free. After that the yacht can be sold ( to the real owner) with only 7% VAT. Compared to over 20% VAT taxation in many Eu countries the savings are considerable, and after paying this small Malta VAT you can fly your home country flag and are free to stay in EU indefinitely.
I don't care what they say I'm going to 'hire' you Esysman. I'll double whatever your making now. Just hold on,it's going to take me a minute to meet those qualifications 😂. very interesting and informative video!
I think a lot of us would like you to please expand on this video. The taxes and crew designations are never covered on any other channel that I've found from a crew member or owners perspective.
Fascinating! Thanks for the interesting explanation. Just one more way tax avoidance changes behavior.
FYI - Ive noticed super yacht NAIA has been anchored in front of the Andaz Hotel on the Papagayo peninsula Costa Rica for the last 4 weeks. Not in the marina but just anchored off shore.
Most likely boss is onboard. Look for tenders in the water and maybe a helicopter onboard.
Oh boy, and I thought the paperwork for being a commercial driver was complicated, makes me glad I didn’t choose to be a sailor!
great topics
last thing you mentioned was very important "under the flag you decide which work contract the crew works"
nobody would work under italian or french rules, because they would be paid less - and no Boss would hire people in that way because burocracy and regulations are so strict
Just to clarify Cayman, BVI, Bermuda, Gibraltar etc are British Overseas Territories not Commonwealth - hence Red Ensigns. IOM, Jersey and Guernsey are Crown Dependencies also entitled to the Red Ensign. Some Commonwealth countries remain Realms - Australia, NZ, Jamaica, Canada, PNG etc and have badged red ensigns. Finally there is the blue ensign essentially for public vessels with naval crews or members of various Royal Yacht Clubs.....
Noticed the Riva Immediately and wondered where you got it............They remind me of my childhood when we would holiday on lake Garda in the 60's
Thanx learned alott n enjoy how u explain everything so calmly n very understanding of n explaining! Was so easy to understand u r my favorite to explain u r very notaligable n no what u r telling us thanx
Well done … very informative. Keep up the good work/
As always, very informative. This is something about which I have often wondered. Thanks!
I like the certifications and the levels.
I would be interested in learning about that ....well also because
I like puzzels and i still have a dew unfinished "puzzels" concerning some historic shipwrecks that i hope to better understand in the future. Thank you for concidering my opinion.
C&E*Ca.USA
Do more similar to this presentation style,very informative.
You have 1 more Riva than I do.
I'd love an episode about Rivas. I really don't know much about them, and as you may suspect they are not common in America, sort of like how Europe does not often get Chris Crafts.
Pride of America is US flagged. When I had a US Yacht (51 foot passenger sailboat), I had to have it built in the US to Coast Guard specifications. Now THAT cost a frigging fortune, so I can't imagine what extra dollars a 50 meter would incur.
"Not for charter to US residents while in US waters" qualification on foreign registered vessels. Lots of rules at play.
Hi. I am a new subscriber to your channel ...it is well done and I enjoy learning from your videos! Very informative and interesting.. Thanks
So far as a know the reason for NCL flagging their ships as American was to skirt a law which was intended for use on the Great Lakes. Going back to the 1880s (or something like that) foreign flagged commercial vessels intended primarily for passengers were prohibited from traveling directly between US ports. The law required that a stop was made in a foreign port en route. The intention was to block Canadian ferry companies, who had a lower overhead (the financial sort, I should specify) from undercutting US companies servicing American cities.
It's actually a broader and older concept known as "cabotage", and enacted in the Jones Act in the U.S. Cabotage prevents commercial ships and aircraft transporting cargo or passengers from travelling between two points inside a foreign country. Rudimentary cabotage was instituted by King Richard II in 1381.
love the channel!
Excellent video just curious if you could do another video based off your knowledge of the differences in fuel prices around the world (what are the best prices) with route choices and why they would choose particular places over others to sail to
That was very educational, thanks for sharing! Cheers from Canada eh!
Great video, always wondered about the flags, Was going to ask about the model on the window sill, but you answered it. Love that model
Riva boats are timeless! Beauty and motion or sitting perfectly still.
Very interesting and well explained, thanks. Like your yacht, small but nice 👌
Im an American and of course we have to have laws different from other countries because we like to be difficult. In other news, Americans go vote!
What are you talking about?
@@JamesTheCaptain i dont see anything confusing within his comment. Care to elaborate your barren question?
As a Brit who travelled to the USA on business on and off for a few years, I believe your laws are made just to pi** off the rest of the world at your immigration desks.
Why it doesn't matter.....these libtard lefties are gonna cheat anyways
@@trentdawg2832 I see so if Trump wins, its a fair election free from fraud and, if he loses, its cheating. Literally 50 states with 50 election commities and 50 Rep and Dem governors are all in on it.
Heads up, the Y3 chief limitations are 500gt-3000Kw not 3000gt-3000Kw. Your posts are good, keep at it. When people ask me what its like to work on a super yacht I send them a link to one of your vlogs. Cheers.
Very interesting subject. You answered a lot of questions that had come to mind. Another question I had...what is the story about yachts that fly the White Ensign?
Thanks for another well done video.
If i'm not wrong British royals and people who have been knighted can fly it
Isn't that the Royal Yacht Squadron?
@@colbr6733 yes
I may be wrong. If so please correct me. Even ordinary Knights can't fly the white ensign. You have to be invited to be a member of the Royal Yacht Squadron.
@@colbr6733 i have to say i am not an expert but i think you are right as for example neither Sir Jim Ratcliffe's nor Philip Green's yachts fly it
Thank you a very informative video.
0:22 Esysman: Its about the way superyachts are flagged
Me listening: "Its about the way superyachts are flamed" and thinking "this will be a video to break the nautical internet.
Thanks for the explanation bloke, very informative. You are very knowledgable for a Scotsman.
Very interesting. I knew a lot of this, but your brought it all together. Your more interesting than anything in cable TV.
Thanks for that interesting information... I have a couple of questions not related to flags though... the first one is about moving alcohol around the world on a yacht for example if you are in Europe and have a substantial wine cellar, sprits etc and move to the US (or anywhere else) do you have to get rid of it all before going from country to country or do you have to pay import taxes on what you have with you etc... the other one is about growing food onboard... say there was a hydroponics room where fresh lettuce and herbs etc were grown... have you ever heard of that and can it be done?
When a superyacht is launched, how long does it have to get out of EU waters to have the tax waived (hours, days, so many kilometers traveled)? How long does it have to be out of EU waters to qualify for the waived tax [Overnight or hours]? How is the proof documented that they were out of EU waters? Is the tax waived completely (so they never have to pay it) or is it a delayed or partial payment?
A yacht intended to be exported by the new owner can stay in the EU for up to six months beforehand. VAT (European sales tax) would only become payable if the yacht were permanently returned to the EU at a later date, otherwise there is no VAT to pay. A yacht can later come back and be "temporarily" admitted for up to 18 months without having to pay the tax, but stay one day over that time limit and you'll have to pay the tax.
Great vid...Very informative!!!
Yeah I learned about the taxes and hiring the crew and all of that stuff the hard way.
Love you channel by the way, just stumbled onto it a few weeks ago
Enjoyed this vid. One of the most informative. Good work
Follow-up question on "dodging COVID19 on your yacht": If you cant go ashore. How long before you get bored and what do you do onboard to avoid it? (Isn't visiting different ports a large bit of the experience). Thanks in advance.
Thank you, this is very informative.
Beautiful Riva makes one want to sing Volare if you are old enough to remember Dean Martin
US regulations were put in place to protect US seamen, but all it's done is to create severe restrictions.
I had a 35 foot sailboat that was officially registered as a US yacht, but I didn't have any issues. 😊
In the airplane world pilots need to have licenses from the country the aircraft is registered in to legally fly. Individual regs and licensing seems to be common among countries. Also think some has to do with job protections and union pressure.
Like that Chris Craft model you have in the background....I worked for them
Flags of convenience are what I'm used to seeing the most of
Superb job!!!! Thx for the info.
Great episode. Very, very interesting. I love the Riva as well, it looks like an Aquarama.
Super funny guy as are most Liverpudlian’s .I’m ex Merchant Navy from Wales 70-80s sailed with a few Scousers in my time good 👍🏼 lads.Living near San Francisco now
Another great video...thanks as always...Jealous over the model of the Riva, its a beautiful boat.