Delaware registered, American flagged yachts’ situation changing

Bahar

This situation has left many European yacht owners with American flag, registered in Delaware, confused about what to do.

According to the law, yachts registered in Delaware that are not continuously present in Delaware waters for 60 days will lose their flag status. This means that yacht owners having an American flag, registered in Delaware, need to keep their yachts in Delaware waters for at least 60 days, which can be quite costly if they don’t reside around Delaware.

This law has always existed, but it has only been enforced clearly this year. Delaware is a small state located on the east coast of the United States. It is considered a leading center for industries such as finance, insurance, and law. Companies and investors generally prefer to register in Delaware due to low tax rates, less bureaucracy, and an investor-friendly environment. However, the recent situation seems to mark the beginning of a new era for Delaware registered yacht owners, looking for different flag options.