There is a considerable probability that a U.S. citizen has approached you, a Canadian vessel owner, about purchasing your vessel. In most cases, a U.S. citizen interested in purchasing a Canadian boat does so because of a personal connection to the country. When selling a boat to a U.S. citizen, you must put yourself in their shoes and learn why they want to purchase it and how you can best meet their needs.
For starters, remember that the price of your boat is secondary to the value the buyer places on being the proud owner of your vessel. When considering whether to sell the boat, you should consider the buyer’s emotional involvement in it in addition to the asking price. Spending time getting to know the customer more personally and determining what kind of vessel will best meet their requirements may be a wise investment of time and effort. Here are reasons why a U.S. citizen can own a Canadian vessel.
You Don’t Need a Visa!
Many individuals are considering purchasing Canadian-made ships, particularly in the United States. That’s hardly surprising, given they’re usually higher quality and cheaper than their U.S. equivalents. However, things become murky when you consider that importing a Canadian vessel involves a whole different procedure than importing one from the United States. In terms of length, the border between Canada and the United States is the longest in the world.
Nonetheless, even though they share such a large portion of a common border, these nations function differently and have different rules governing commerce and maritime law. The most notable distinction is that foreign nationals are permitted to own boats under Canadian law. If you want to buy one of these boats, it doesn’t matter where you live or how long you’ve been there; you may be a complete boating novice or buying your millionth boat.
You Don’t Have To File Any Paperwork With The Canadian Government!
Canadian ships are most often associated with those used on the Great Lakes. It is feasible for a U.S. person to possess a Canadian-flagged vessel even though all such boats are technically deemed American-registered due to the need that they fly the American flag. The main difference between boat ownership in Canada and the United States is that there needs to be documentation to complete with the Canadian government.
Registering a boat or ship after its purchase or construction is as simple as visiting the marine office in your state. It’s also worth noting that you won’t have to pay taxes on your boat if you register it in a state other than where you now reside. Just double-check that it has up-to-date safety features and emissions standards. Also, due to the nature of international law, a person from one jurisdiction may legally own property in another.
Your Canadian Boat Is Considered “Non-Resident” For Tax Purposes!
Boats not regarded as Canadian residents for tax reasons are exempt from Canadian property taxes and other boat-related expenses. Non-residents own most foreign boats; thus, requiring them to pay taxes in every port they visit would be an onerous burden. When an American sailboat enters Canadian waters, it is considered a “non-resident” vessel for its stay, which can have some interesting repercussions.
Non-resident vessels must pay the same entry fee as all other foreign vessels entering Canadian waters, ranging from $250 to $3,000 per year. As a non-resident vessel, you will not be required to pay any extra fees or taxes to the Canadian government. You will not be required to submit any paperwork related to your Canadian vessel. The only paperwork you’ll have to deal with is the standard customs checks given to your vessel upon entry to Canada and the possibility of sales tax on any purchases made here, depending on how long you want to stay.
You Can Use Your Boat In Both Countries Without Any Problems!
The United States and Canada have had reciprocal agreements to promote commerce across the border for some time. This should also apply to watercraft. As long as certain conditions are met, a citizen of the United States may legally possess a vessel registered in Canada. A U.S. citizen can purchase a pleasure boat in Canada so long as the vessel is registered correctly by Canadian law and all relevant conditions of U.S. law are met. The boat’s primary U.S. address or the province or state where it will primarily be operated is where registration is required (e.g., where it is kept). A U.S. citizen cannot legally retain a pleasure boat in Canada for more than a year unless the boat is registered in Canada and complies with all relevant U.S. rules.
Suppose you’re interested in owning a pleasure vessel that has been issued a Canadian Registry, and you’re a U.S. citizen. In that case, you must first contact the National Vessel Registry Center at +1 (800) 419-9569 to find out if you can register the vessel on your U.S. title.