Ship Owners Say Floating Luxury Residence Not A Tax Haven

by Philip Morton, Investors Offshore.com

10 April 2002

The Bahamas-based consortium behind 'The World', a luxury cruise ship which will permit high net worth individuals to purchase apartment space onboard, has stated that the ship will not, contrary to rumour, become a tax haven.

When the development of the ambitious project was initially announced, there was speculation as to whether residence on the ship, which, according to its owners offers: 'the comfort and privacy of a luxury vacation home, the personal service of a world-class resort and the mobility of a grand ocean liner that circumnavigates the globe' would permit wealthy individuals to claim non-residence for tax purposes in any country.

The vast majority of nations automatically include within their tax net anyone who remains in the country for more than 183 days, although in countries such as the United Kingdom the rules are somewhat stricter.

However, speaking to The Times ahead of 'The World's maiden voyage on May 2, Residensea, the ship's owners, explained that the consortium goes to great lengths to vet prospective buyers, and that one of the most important criteria is that potential long-term residents also have a permanent residence elsewhere.

The Bahamas based group said that as a result of this, the ship is unlikely to be considered as a haven by wealthy individuals seeking to minimise their taxes. Clients will be taxed according to the regime in the country where they have permanent residence.

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