A yacht is never complete without a flag prominently displayed on its stern. The choice of flags could indicate allegiance to one’s country, affiliation or office held, or otherwise, where the boat is located.
There are significant tax and privacy advantages to registering a yacht under the Red Ensign and flying the Bermudan flag. Additionally, yacht owners enjoy beneficial registration costs and less red tape when preparing to own a yacht.
Also known as the Red Duster, the Bermudan flag, among others in the same category, has come to be synonymous with safety and quality on the high seas, and is one of the most common options for luxury yacht owners.
Bermudan Flag Origins
Bermuda is an overseas British territory located in the North Atlantic Ocean. It consists of seven main islands and several other chains of islands and is about 650 miles east of North Carolina in the United States.
The country enjoys one of the highest GNPs per capita in the world with most of its earnings derived from tourism and foreign direct investment. Bermuda is considered a tax haven and is a popular choice for offshore banking activities due to its low income taxes.
The Bermudan flag is highly recognizable with the most recent version being adopted in the 1960s. The flag is a melding of Britain’s Union Jack in the upper left corner of the flag and Bermuda’s coat of arms – a red lion holding a shield depicting a shipwreck against a green and white background.
This shipwreck holds significance in Bermuda’s history as according to lore, in the summer of 1609 the Captain of the Sea Venture – a passenger vessel – deliberately steered the ship into a reef in order to avoid a devastating hurricane.
Although the ship eventually sank, Admiral Sir George Somers’ quick thinking and decisive action resulted in the survival of all passengers who later went on to settle Bermuda.
Origin of Red Ensign Group
The Red Ensign Group is a collaborative effort between 13 British shipping registries of the UK, British Overseas Territories, and Crown dependencies. Among the countries sharing this prestigious designation are Gibraltar, the Cayman Islands, Isle of Man, and Bermuda.
The name was adopted from the “Red Duster” flag flown by British civil merchant ships.
Its mission is to standardize safety and quality measures across the British fleet; this includes all vessels registered within the UK and all its territories.
Administrators reserve the right to impose strict sanctions against members of the group who attempt to flout any of the regulations pertaining to safety.
There are two categories within the Red Ensign Group – the first comprises six countries whose flags may be worn by ships of any type, length, or tonnage. The other encompasses commercial ships and yachts as well as pleasure craft up to a certain size, smaller than those in category 1, and for which there are seven countries.
These days about 80% of all large yachts are registered in British Overseas territories, especially in tax havens such as the Cayman Islands.
Advantages of Registering Under The Red Ensign – Bermuda
A yacht can be registered anywhere the owner chooses, regardless of where it was built and irrespective of where the vessel is berthed.
The Bermudan government actively markets its flag to luxury yacht owners with a view to attracting them to register their vessels in the country.
They are able to promote the distinction, esteem, and adherence to the Large Yacht Commercial Code associated with flags under Category 1 within the Red Ensign Group.
If your yacht wears the Bermudan flag, you are exempt from sales as well as corporate taxes in Bermuda. Owners pay only nominal registration and maintenance fees, and the process forgoes the usual bureaucratic red tape which could make owning a yacht a frustrating experience.
Yacht holders also benefit from British consular protection and the yacht enjoys the security of British Maritime law and naval intervention if necessary.
Why Choose a Bermudan Flag?
Easily identifiable flags can be a sign of patriotism for some owners, but it could also be a beacon to more unsavory characters who are looking to score big through terrorist acts.
As a consequence Americans, for example, could opt out of flying their stars and stripes for something much more neutral, and which signifies a more prestigious affiliation.
Observing flag etiquette and flying the distinguished Bermudan flag on your yacht indicates an association with a globally recognized certification and registration process under the Red Ensign Group.
In addition to being registered in one of the yachting centers of the Caribbean, yacht owners also gain easy access to highly qualified experts of the UK Maritime and Coastguard Agency.
The favorable tax conditions, a stable government influenced by British law, and the freedom and ease of registering a yacht either for personal use or for chartering purposes, make Bermuda a more attractive locale to own a luxury yacht than most other countries.