Registration of a yacht under the flag of Ukraine or offshore? Features, prices and advantages
When ukrainians buying a first yacht, they often ask the question: “Why do I need to register if we sail along the river?” Joking… The fact is that the procedure for registering a vessel under the flag is prescribed not only in international law, but also at the national level. The exception will be a few countries, such as Sweden, where the nationality of the vessel is determined by the citizenship of the owner – such a yacht can sail without a flag.
In Ukraine, the absence of the national flag on the mast either in the flagpole indicates that no state in the world community controls this boat. This vessel is outlawed under Art. 90 – 92 of the 1982 United Nations Convention on the Law of the Sea (UNCLOS). Without a flag, a boat can be on land during seasonal storage or maintenance, or drift in the open waters of the Black Sea.
“Classic” buying when the boat, buyer & seller are located in the same country
- The buyer makes an offer, the seller accepts it, and the deposit is placed in an escrow account;
- Then a physical inspection & test-drive of the yacht. After that, the deal is finalized. The price may be adjusted;
- The lien holder of the deposit sends a letter of “Release of Title” to the broker and the seller;
- The broker transfers the proceeds to the seller;
- The boat is registered in the name of the new buyer, new liens are set;
Most of these steps take only one day, although it usually takes another couple (days) to prepare and execute all the documents.
Bank transfers of funds
Regardless of whether you are buying or selling a boat, it is extremely important to check with the bank immediately what documents will be required when transferring funds.
Be aware of the risk of currency fluctuations abroad
When buying a yacht abroad, consider currency risks. Try to agree on the most favorable option by choosing a fast and reliable way to transfer funds without huge fees. This can be fixing the exchange rate by the seller, buying currency in advance, or a broker storing funds without converting them until the most favorable moment. Remember that bank fees can add up to thousands of dollars in unplanned expenses.
How to register a yacht in Ukraine? What are the prices?
There are three authorities involved in certification a boat from 4 to 24 meters:
- Head of the seaport;
- State. inspection on safety on sea and river transport;
- State. Fisheries Agency of Ukraine.
Depending on the functional / territorial purpose of the vessel, you choose where to apply. Each body requires different documentation at its discretion. There is no single procedure.
In addition, the procedure for сertification of ownership requires a request to the State Register of Ships or to the Ship Book. The second option is considered easier and faster. Officially, the request should be considered within 5 working days, but in practice it can take several weeks. Below is a list of required documents:
- application of the shipowner, with an attached document confirming the right of ownership;
- document the presence or absence of encumbrances on the watercraft;
- provide copies of the certificate of suitability of the vehicle for navigation;
- confirmation of payment of the registration-fee (receipt);
- if the owner of the boat is an individual, then a document confirming the identity of the owner (copy) is provided;
- If the yacht is used, has already passed the registration procedure, you should provide a document indicating the exclusion of the vehicle from the register by the previous state authority.
After paperwork done, your vessel must be in the field of activity of the port of registry, as well as have a permanent mooring.
Note that the Ukrainian flag falls under the “closed type of nationality”. This means that Ukrainian registration is not possible for a non-resident of the country.
Registration of a yacht under the flag of another state
Let’s get back to the court registers. They are of three types:
- closed, or first registries (countries that traditionally own courts historically. These are the UK, France, Norway, Denmark, Germany, etc.)
- open, either second registries (also called offshore)
- Flags of Convenience
Flags of convenience allow a non-resident of the flag country to buy a yacht and a crew consisting of non-residents to stay. Flag of convenience countries also offer either no taxation / a meagre amount of taxes.

Why register a boat offshore?
- Due to the geography of service;
- In a number of offshore jurisdictions there are no taxation (20% ~ VAT) and customs formalities (10-20%);
- The possibility of registering the vessel with complete confidentiality or for a non-resident;
- Ease of paperwork.
When you see a boat under a foreign flag in Ukrainian waters, then most likely you have a ukrainian owner with a vessel that is temporarily imported into the country. The disadvantage of temporary importation is the annual exit of the vessel from the territory of Ukraine. Before 2022 this can be done through Belarus either Odessa.
The procedure for updating documents is paid, not clearly described in the legislation and costly, but still sometimes more profitable than customs clearance.
What “convenient flags” do Ukrainians choose?
Law firms offer several ready-made solutions. Let’s start with the prestigious British offshore – the British flag of the island of Jersey. Advantage: documents are valid for 10 years without annual payments. Then they offer Panama – it is valid for 2 years, the plus is that the price includes a radio licence, it is issued simultaneously with the registration certificate.
Malta or Cyprus. These countries allow you to register a yacht in Europe for a company and use it for personal needs. Still, there are requirements for the owner to spend certain time in the ports & territorial waters of the European Union (from 30%). Paperwork costs depend on the capacity of the vessel: from 200 to 5000 €. Additional costs will be 100 € for the application, 200 € for the approval or change of the boat Name. The amount of VAT is calculated on the amount of time spent in the waters of the European Union.
Montenegro. Here they do not pay VAT, but only a fee for registering. Up to 12 metres will cost 350 euros. In addition, the vessel can be rented out – not pay income tax. Certificate is valid for 3 years, issued in 10 days. Required Documents:
- Vessel name statement.
- A copy of the passport or certificate of registration of the company – the owner of the vessel.
- Insurance policy for at least €800,000.
- Certificate of exclusion from the Register, if the ship was previously registered in another country.
- Certificate of ownership.
- Technical documentation, which indicates the length of the hull and tonnage.
- If the vessel is new, then the manufacturer’s certificate.
- Broadcast licence.
- Declaration, which indicates the purpose of the operation of the yacht.
- Receipt for payment of duty.
Poland. The advantage is that a lifetime registration is issued. There are no taxes to pay – the licence is for commercial use. The price is 475-675 euros for certification a small boat, 250 euros for licensing AIS, MMSI radio equipment, obtaining a call sign.