Which flag to choose for a round-the-world boat trip?
Which flag to choose for a round-the-world trip by boat?
You may already know that it is possible to choose which flag to fly on your boat. Regardless of your nationality, as an owner, you can choose to adopt a "flag of convenience" from a foreign country.
But have you considered which flag would be most suitable for you when circumnavigating the globe? In this new article, Bateau-immatriculation.com revisits the many factors to consider when choosing between French, British, Dutch, Spanish, or Polish flags...
Conditions and timeframes for obtaining the various flags
Eligibility for foreign flag
The prerequisites for registering a boat are not the same in all countries. Start thinking now about the tax residence you will choose for your round-the-world trip: it is a determining factor!
To obtain the British flag, for example, you must reside physically in the United Kingdom, or create a company there and use a local legal representative. For the Belgian flag, the owner can be a natural or legal person but must have a link with Belgium, i.e. be a resident or of Belgian nationality. For the Dutch flag, the owner must necessarily be a natural person residing within the European Union.
The Polish flag, on the other hand, is the most affordable, with accessibility to any owner of a pleasure boat under 24m, of any nationality and without any particular restrictions.
As for France, it is possible to register your boat as long as you are a European citizen. Residence permits for non-EU citizens are only accepted for British citizens who obtained the renewal of their residence permit before 30/09/2021, mentioning the Brexit agreement.
Are you a European national but do not reside in France? No problem, we have a solution for you!
The complexity of administrative procedures
Registration under the Polish flag is certainly the simplest to date. There is no control or inspection of vessels under 15m, and VAT payment is not a prerequisite (which is only relevant for non-EU resident owners potentially not subject to VAT).
This does not mean that you should not comply with this obligation: flying a Polish flag can in some cases lead to repeated at-sea inspections. Choose peace of mind, and get compliant or be sure to hold all documents proving your temporary admission and proof that you are a permanent resident in a non-EU country!
To obtain a national Dutch flag (Kadaster), and not a certificate from a sports organization (Watersportvertbond), a safety visit will be mandatory, and this is at the owner's expense. Note that no rental, even bareboat, is tolerated under the Dutch flag. Like the Polish flag, registration with the Kadaster does not require proof of VAT payment.
To register a boat under the British flag, the administrative burden for non-British residents lies in the need to open a company in the UK. This entails representation and maintenance costs for the company. This is why, as it stands, there is no particular advantage if you do not reside in Great Britain to register your boat under the UK flag. However, for commercial use, it may be advantageous to aim for registration under this flag.
Verification of tax status, origin and legal status of the boat, ownership of the vessel... Everything is checked! While the administrative procedures are cumbersome, they are still far from being as tedious as for the Spanish flag, by far the most complicated to acquire and moreover very restrictive.
The time required to obtain the flag
If you have little time before setting sail, you should know that the timeframes for obtaining a flag registration vary from country to country.
The Polish flag is the quickest to obtain: it is possible to receive a provisional flag certificate in 2 to 3 days, and permanent registration is usually received within 30 days.
For the French flag, it takes between 15 and 30 days to obtain a pleasure craft registration certificate. This is therefore very similar to the Polish timeframe.
Note that obtaining a British flag takes approximately 2 weeks, and it takes 2 to 6 weeks for registration under the Dutch flag. Finally, obtaining the Belgian flag registration takes 5 weeks.
The validity of the flags, limited or not
Depending on the planned duration of your trip, the question of flag validity may be of interest to you. Indeed, there are navigation flags granted "for life" and navigation flags that need to be renewed. Thus, French, Polish, and Dutch flags are valid indefinitely and do not require any renewal application. However, you will see a validity date on your French registration certificate, which corresponds to a property and characteristics check every 10 years.
On the other hand, British and Belgian flags must be renewed every 5 years. Registration on the Spanish registry requires a safety inspection every 5 years, with the boat present in Spanish waters. For Poland, a safety inspection is mandatory every 5 years for vessels over 15m.
Regulations and restrictions on navigation, by flag
CE marking
Under the five flags, all boats built after 1998 must have CE certification. In Spain, vessels must also be approved by the Directorate-General for Merchant Shipping (DGMM), which entails additional procedures and costs, to be renewed every 5 years.
For vessels built before 16/06/1998 and the implementation of CE marking on pleasure craft, boats must be studied on a case-by-case basis to find the best option.
Safety equipment according to flag state requirements
You have undoubtedly planned to fully equip your vessel to ensure your safety, both in coastal navigation and offshore. But did you know that safety equipment regulations vary considerably from one flag state to another?
Under the French flag, recreational boaters are required to carry equipment corresponding to their situation, as detailed in Division 240. Among the many items to be carried, for example, there is an obligation to have a VHF on board if sailing more than 6 miles from a shelter. The situation under the Polish flag is very similar, with a list of required safety equipment very much like that of the French register.
Under the British flag, navigation can be done without a VHF regardless of the distance from shore, for vessels with a hull length of less than 45 feet (13.7 meters). Under the Belgian flag, the owner himself chooses the safety equipment to be carried. He simply needs to have a VHF on board, or a dual VHF if the vessel's hull length exceeds 20 meters. As under the Dutch flag, recreational boaters under the Belgian flag are not required to have a life raft, even if they wish to navigate in offshore areas, and there is no specific regulatory inspection to carry out.
Finally, with a Spanish flag, regulations are considerably more demanding: in Spain, there is no distinction between pleasure craft and commercial vessels. Therefore, the law requires specific equipment to be held on board depending on the type of vessel and the navigation area. Beacons, life rafts, and fire extinguishers must be checked annually, and any vessel over 6 meters in hull length must undergo a Technical Boat Inspection every 5 years.
It is important to remember that when it comes to safety on board, choosing a flag to avoid the obligation of having a life raft on board for offshore navigation is really not wise.
License and navigation area
While a round-the-world boat trip is most often done aboard a sailboat, Bateau-immatriculation.com details for you the navigation permits required for motor adventurers, depending on the various flags:
While in France, a navigation permit is required as soon as the engine power exceeds 4.5 kilowatts, the owner of a vessel under a British flag, for example, can navigate without a permit or limitation.
Under the Belgian flag, if they are a tax resident in Belgium, they can also navigate up to offshore areas without needing a specific permit, with no engine power restriction. A permit remains mandatory in specific cases.
Under the Dutch flag, it is the boat's category (A, B, C or D) that determines the possible distance from a shelter. A permit is only required if the hull length is greater than 15 meters or if it is possible to navigate at more than 20 km/h.
The specific case of navigation in French territorial waters
If, thirty years ago, it was possible to sail simply by complying with the regulations of one's country of registration, this is no longer the case today. Since the Leroy Law on the blue economy of June 20, 2016, individuals or legal entities whose tax residence is in France, navigating in French territorial waters, are subject to French law. Regardless of the owner's nationality or the flag flown, navigators with tax residence in France are required to comply with French regulations, whether at sea or in port.
Regardless of the flag flown, concerning safety equipment and armament, or the required navigation permits, it is therefore French regulations that you must apply! An important factor to consider when planning a round-the-world boat trip, as French territorial waters represent the second largest maritime area on our planet, with nearly 11 million km².
Shipping flags from a financial perspective
The choice of your flag state for your round-the-world trip can also depend on your budget.
In France, the cost of vessel registration varies from one to several hundred euros, depending on the hull length. Under the Belgian flag, pleasure boaters must pay a registration tax for their boat if it has a hull length greater than 7.50 m. This amounts to €2,478 for a new boat. For a used boat, the amount of the tax decreases by 10% per year of age.
Registration under the Dutch flag requires a safety inspection and costs between €2,000 and €3,000, regardless of the boat. This fee, required for the national flag valid worldwide, should not be confused with the fee charged for obtaining a sports organization's flag, which only allows recognition in Dutch national waters.
Finally, registration under the Polish flag requires the payment of relatively affordable administrative fees, varying according to the vessel's hull length. These fees are generally between €450 and €1,000 and include the involvement of an external service provider. However, vessels over 15m must be inspected by the Polish administration: a very expensive safety inspection, which costs several thousand euros and must be renewed every 5 years.
For the Spanish flag, as with the Dutch registry, the authorities require a safety inspection to be renewed every 5 years. The fee is similar to that charged in France and Poland.
The annual tax
When a boat is registered in France, its owner must pay an annual tax, formerly known as the Droit Annuel de Francisation et de Navigation (Annual Francisation and Navigation Duty), and now called the taxe annuelle sur les engins maritimes de plaisance (TAEMP) (annual tax on pleasure craft). The amount varies according to the vessel's characteristics, and only boats with a hull length of less than 7m and an engine power not exceeding 22 administrative horsepower are exempt. For a Personal Watercraft (PWC), the actual power must be less than 90 Kw.
Passport Law
British, Dutch, Spanish or Polish... Whatever foreign flag you choose, if you are a French tax resident, you will also have to pay the "Droit de passeport" (Passport Duty). This is the equivalent of the TAEMP (formerly DAFN), designed for boat owners who do not fly the French flag.
The tax is calculated based on the hull length and the age of the boat, and it is due annually by all owners who are tax residents in France, whether or not they sail in French territorial waters. If you are sailing around the world, you will be subject to the Passport Duty if your vessel's hull length is greater than or equal to 7m, and/or if you are equipped with an engine whose administrative power exceeds 22 HP. If you carry a Personal Watercraft (PWC) with a real power greater than or equal to 90 kW, you will also have to pay the Passport Duty for it.
Being supported in changing your flag
Depending on your sailing project, your situation, and the route you plan to take for your round-the-world boat trip, various solutions are undoubtedly worth considering. Trust the experts at Bateau-immatriculation.com to determine which flag state is right for you and to handle all the procedures until you obtain your new flag! Go sailing, our team will take care of your paperwork.