What are International Waters?

Beyond the territorial waters of any single country, international waters provide a neutral ground where transactions for yacht sales or transfers can occur under internationally recognized maritime laws. This article outlines the basics and encourages further reading on the benefits of yacht buyers exploring options beyond coastal jurisdictions.

International waters, also known as 'the high seas', refer to areas of the ocean that are not subject to the jurisdiction of any single country. These waters begin beyond a country’s territorial sea, which extends up to 12nm (22.2km) from its coastline.

International waters cover approximately 50% of the earth's surface and include all oceans and seas that fall outside the Exclusive Economic Zones (EEZ) of coastal nations, that extend 200nm (370km) from the coast.

Territorial vs. International Waters

The United Nations Convention on the Law of the Sea (UNCLOS) is an international treaty that comprehensively regulates ocean space, defining maritime zones that are divided into three main categories:

Territorial Sea

Up to 12 nautical miles from a country's baseline; the coastal state has full sovereignty.

Exclusive Economic Zone (EEZ)

Extends from 12 to 200 nautical miles from the baseline; the coastal state has special rights regarding the exploration and use of marine resources.

High Seas

Areas beyond the EEZ, are open to all states for navigation, fishing, overflight, and laying submarine cables and pipelines.

Accurate distance thresholds are critical for understanding maritime jurisdiction, yacht operations, and legal compliance. Below are the standard zones recognized under the United Nations Convention on the Law of the Sea (UNCLOS), along with practical conversions and analogies for context.

Visual Distance Comparisons (Analogies)

To help contextualize distances,12 NM (22.2 km) is roughly the driving distance from downtown Miami to Miami Beach. 24 NM (44.4 km) is similar to the distance from London to Windsor Castle by road. 200 NM (370.4 km) is comparable to a straight line from New York City to Washington, D.C.

Unit Conversion Reference

1 Nautical Mile (NM) = 1.852 kilometers = 1.15078 statute miles

Used in maritime navigation due to direct relation with the Earth's latitude (1 NM = 1 arc minute)

Why It Matters for Yacht Owners and Transactions

• Territorial waters: Subject to import duties, VAT, and flag restrictions
• Beyond 12 NM: Often preferred for yacht registration, charters, and tax structuring
• 200 NM EEZ: Still subject to coastal state’s resource control, but not general law enforcement.

International waters are crucial for global maritime trade, allowing ships and yachts to travel freely without interference from any single nation's laws. This freedom of navigation is vital for the international shipping industry, facilitating the movement of goods and resources between countries.

The freedom and neutrality of international waters simplify the process when transferring ownership of a yacht. In these waters, transactions can occur under internationally recognized maritime laws, independent of any single country's jurisdiction. This environment enhances legal certainty and facilitates smoother transitions of ownership, ensuring compliance with applicable regulations while promoting flexibility for yacht owners and stakeholders.

The United Nations Convention on the Law of the Sea

UNCLOS (full text can be found here) is widely regarded as the cornerstone of international maritime law, establishing a framework that fosters peaceful cooperation among nations, safeguards marine environments, promotes economic development through maritime activities, and ensures fair utilization of ocean resources.

Its principles and provisions profoundly influence global maritime policies and practices, including those of yacht purchases, transfers, and operations in international waters. Understanding and adhering to UNCLOS provisions are essential for yacht owners, operators, and stakeholders navigating the complexities of international maritime activities.

Examples of Territorial Claims by Country

This section provides structured guidance tailored to yacht owners planning to sail internationally, charter, or manage transactions involving foreign waters. We added core documentation, legal implications, and insurance insights to ensure full compliance and peace of mind.

Choose a Flag State (Country of Registration)

• Consider tax policies, liability protection, and enforcement reputation.
• Popular flags: Cayman Islands, Marshall Islands, Malta, Netherlands.

Register the Vessel

• Obtain a Certificate of Registry (proves nationality and legal status).
• Required for customs clearance and entry into foreign ports.

Comply with Safety and Crew Regulations

For private use: Ensure basic safety gear (SOLAS-compliant) and radio licenses.

For commercial or charter use:

• ISM Code (International Safety Management)
• MLC (Maritime Labour Convention) compliance

Plan Customs and Entry Requirements

• Carry clearance papers, passports, and crew lists.
• Notify port agents ahead of arrival for required inspections.

Secure Valid Insurance

• Must include international liability, salvage, pollution, and crew coverage.
• Required for mooring at most international marinas.

Common Legal Scenarios and Outcomes

Legal Consequences by Jurisdiction

In this article, we discussed what is international waters and their importance for yacht buyers and sellers.

• Also known as the high seas, international waters are waters beyond any single nation’s sovereignty.
• Starting point: Typically begin 12 nautical miles (22.2 km) from the shoreline, beyond the territorial sea.
• Coverage: Encompass about 50% of Earth's ocean surface, excluding Exclusive Economic Zones (EEZs).

Defined in the United Nations Convention on the Law of the Sea (UNCLOS):

• Territorial Sea: 0–12 nm
• Contiguous Zone & EEZ: 12–200 nm
• High Seas: Beyond 200 nm
• International waters fall into the UNCLOS-defined High Seas zone, governed by flag state jurisdiction, with exceptions for piracy and environmental enforcement.

Importance for Yacht Transactions

• Provides a neutral legal venue for yacht ownership transfers, charters, and registrations, free from coastal-state taxes or import restrictions.
• Transactions conducted in these neutral waters are recognized under uniform international maritime law, minimizing jurisdictional uncertainty .

Benefits of Conducting Yacht Deals Offshore

• Tax efficiency: Can help avoid or defer import duties, VAT, or state-specific sales taxes.
• Regulatory clarity: Transfers fall under flag-state regulations, not coastal-state legislation, ensuring consistent legal frameworks.
• Operational simplicity: Neutral waters simplify transactions and reduce administrative burdens like customs or port formalities.

Proof of Location & Legality

Yachts can verify presence in international waters using:

• GPS logs
• AIS tracking
• Date-stamped photographic or video evidence
• Legal affidavits from third parties.

These records ensure ownership transfers are legally recognized under international maritime jurisdiction.

International Waters in Yacht Transactions