Marshall Islands
A sovereign Pacific nation operating one of the world's largest open registries through International Registries, Inc. The flag is on the Paris MOU white list, accepted broadly by port states, and used by a substantial share of the world's commercial-yacht fleet and large pleasure yachts.
Why this jurisdiction matters
The Marshall Islands operates an open ship registry through International Registries, Inc. (IRI), a private administrator under contract with the RMI government. The registry is the third-largest in the world by tonnage. For luxury-yacht owners, RMI flag offers operational acceptance (Paris MOU white list), Maritime Labour Convention compliance, established yacht-specific procedures, and no taxation of vessel ownership.
The relevant tax regime
- No direct tax on non-resident entities. RMI imposes no income, capital-gains, or wealth tax on non-resident owners of RMI entities. Annual fees apply for company maintenance and vessel registration.
- Annual tonnage-based vessel fee. Yacht registration fees scaled by gross tonnage.
- Stamp duty. Modest amounts on registration events.
Registration or residency mechanics
Vessel flag: through IRI, with options for traditional registration or fast-track in many cases. Entity formation: RMI non-resident domestic corporations are commonly used as the registered owner; alternative entity structures (LLC, LP, trust) available.
Reporting and disclosure
The Economic Substance Regulations 2018 (mirroring Cayman) impose substance requirements for entities engaged in defined activities. CRS reporting through participating financial institutions. U.S. FATCA Model 1A IGA in force; U.S. account information reported.
The substance question
RMI flag is widely accepted by port-state authorities. Substance for the vessel-owning entity follows the Economic Substance regime; pure holding companies face lighter substance requirements than active operating entities.
Recent changes
Economic Substance Regulations (2018) and continuing transparency reforms reflect OECD and FATF pressure. The flag has remained on the Paris MOU white list throughout. IRI continues to expand service offerings and worldwide-office network.
Common asset classes parked here
- Yachts and superyachts — particularly commercial-yacht-code-certified vessels.
- Commercial ships — bulk of registry by tonnage.
- Floating platforms and special-purpose vessels.
Primary Sources
- Republic of the Marshall Islands Maritime Act 1990.
- RMI Associations Law (corporate and partnership entities).
- RMI Economic Substance Regulations 2018.
- FATCA Model 1A IGA between U.S. and RMI.
- International Registries, Inc. — register-iri.com.
- Paris MOU on Port State Control — parismou.org.
Reviewed May 2026