Project Description

Now as you have begun to dip your toe into the water of longer term financial planning it’s important to get a greater understanding of residency and tax implications. Hand in hand with your financial planning, understanding the taxation is critically important to have a grasp of how tax events will have an impact and  map that knowledge into the lifestyle choices and investment choices you may make for your future outside of yachting. Thankfully we have professionals at hand which can help you. We have maritime specific advisors who can help you to with any queries you may have on residency and taxation

We collaborate with the best tax specialists in the world and find the right specialist for your individual needs.

To provide you immediate evaluation and feedback we have teamed up with Marine Accounts.

 

Please try the TAX TOOLS below:

How2Residency

If you are interested in available options for Residency, please also check our How2Residency pages on obtaining residency in:


UNITED KINGDOM

If you are yacht crew that is a UK tax resident and are employed aboard a ship operating outside UK waters you may qualify for an exemption known as the Seafarer’s Earnings Deduction (SED) which greatly reduces your liability.

There are three steps to deciding if you have a claim, and these are explained below. Any claims must be made in a Self-Assessment Tax Return.

1. A valid claim period – This will be a period of at least 365 days beginning and ending with a period outside the UK. A period outside the UK can be a period of employment, a period of unemployment or a holiday abroad. Once a 365-day period has been attained it is carried on until there is a failure. A failure occurs if at any time during the claim period you:

  • Spend 183 or more continuous days in the UK or
  • Break the half-day rule.

The half-day rule is applied at each return to the UK. All days since the start of the claim are added and divided by 2 (A). Then all days spent in the UK since the start of the claim are added (B). The two figures are compared and where B exceeds A there will be a failure in the claim period. The claim period ends on the previous return date. A new claim period must then commence from the earliest possible date of leaving the UK.

2. A valid foreign port for each employment in each tax year – Each employment in each tax year must include at least one voyage or part voyage that begins or ends at a foreign port. A voyage or part voyage that begins or ends at an oil or gas installation (including a rig in drilling mode) located outside the UK and outside the designated areas of the UK continental shelf can be regarded as beginning or ending at a foreign port for this purpose.

3. The employment must be on board ships – A seafarer is someone that works on a ship. There is no definition of a ship in tax law but “offshore installations” are specifically not regarded as ships.

For more information or to discuss your circumstance we will be happy to refer you to the specialist tax adviser to talk to you without obligation.

Gibraltar

Category 2 Individual Status is obtained by application to the Financial & Development Secretary of Gibraltar, and once granted allows the individual to elect the level of taxation which he wishes to pay in Gibraltar while being guaranteed that his total tax bill will not exceed GBP £29,080 per annum.

Latvia 

The residence permit of the Republic of Latvia automatically guarantees free movement of persons within the Schengen area, currently consisting of 25 European countries. Foreigners who bought real estate or placed a subordinated deposit with the Latvian Bank or invested in the fixed capital of an legal entity – resident of Latvia – can qualify for the Residence Permit (RP) in Latvia. One of the most popular options is residency through Representative office, we can organize it for EUR €20,000.

Portugal

Holders of a Golden Visa essentially have a Portugal residence permit which allows them access to the Europe Schengen area without the need of any additional visa. A Golden Visa holder can travel freely in the Schengen area for a maximum period of three months (90 days) per half-year from the date of first entry. To apply for a Golden Visa, there needs to be proof that the applicant has made a purchase of ANY type of real estate of at least €500,000. Also the is Tax regime available for non-habitual residents. For a period of 10 years, taxation related to IRS (personal income tax) on labour income in Portugal is at a fixed rate of 20%No double taxation for pensions or for employment and self-employment income obtained abroad.

Contact Us