FLAG
Points to remember
• A buyer will be denied access to flag’s records to check whether the yacht is being built to the letter of the law, unless this is agreed with the builder during the contract negotiations. • The documentary requirements when registering a superyacht will vary from flag to flag, and depend also on the length and tonnage of the superyacht. All registries will require proof of ownership prior to first registration (i.e. a bill of sale or builder’s certificate), a certificate of survey, a tonnage certificate and, if registered elsewhere, the previous registry’s deletion certificate. If a superyacht has had a break in its registration history, you will have to fill in the gaps in a way acceptable to the registry
Surprisingly, there is no legal requirement to fly a flag, but if you do not have one, port state control will probably stop you from sailing.
Choosing a flag relies on what regulatory regime you want to operate your superyacht under. Within the superyacht sector: • The British Red Ensign is the overwhelming flag of choice in all its variations, including the UK, Isle of Man, Gibraltar and the Cayman Islands — it is still too soon post Brexit to know if this will change. • In the USA, the Marshall Islands have a sizeable footprint, but for superyacht registration, they do not yet have a large presence in Europe.
Owners should be aware that where superyachts are being chartered in European waters the interpretation by the Commission of EU Council Regulations mean non-EU flags may have issues with port state authorities, although there is no evidence of active enforcement by port state control against non- EU flags. Post Brexit the Red Ensign is no longer an EU flag.
• In recent years, the Maltese flag has also become very popular.
• In Asia, Hong Kong is viewed as a popular registry for superyachts.
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