Francisation is the act conferring on a vessel the right to fly the French flag; registration is its entry on a register of the French flag. They are two distinct notions, but since 1 January 2022 they give rise to a single formality, enregistrement, evidenced by a certificate of registration which replaces the former acte de francisation and the former carte de circulation. To be francisé, a vessel must have been built in the European Union or have paid the import duties and taxes there, and must belong at least half to nationals or companies of the Union or of the European Economic Area. The application is made online to the maritime administration, with the written bill of sale, proof of customs status, the declaration of conformity and, for vessels of 24 metres and over, the tonnage certificate. An annual tax on maritime craft for personal use is payable on pleasure vessels.
Many owners use the two words interchangeably, and the administration itself long maintained the confusion by entrusting francisation to customs and registration to the maritime authorities. The reform in force since 1 January 2022 simplified the procedure without abolishing the legal distinction, which retains concrete consequences: on the right to fly the flag, on mortgages, on deletion from the register and on taxation.
Francisation: the right to fly the French flag
Article L. 5112-1-1 of the Transport Code puts it in one sentence: francisation confers on the vessel the right to fly the flag of the French Republic and the advantages attaching to it. It is therefore a question of the vessel’s nationality. It entails the application of French law on board, diplomatic and consular protection, access to French waters and ports without port-call formalities, and submission to flag State control in matters of safety, pollution and working conditions. It also entails obligations: compliance with French safety and manning rules, the presence on board of the certificate of registration (Article L. 5112-1-14) and payment of the taxes attaching to the flag.
Two sets of conditions apply. The first concerns the vessel: it must have been built in the territory of a Member State of the European Union or have paid there the import duties and taxes due (Article L. 5112-1-2). A yacht built in a third country and imported without customs clearance cannot be francisé. The second concerns ownership: the vessel must belong at least half to natural persons who are nationals of a Member State of the Union or, outside fishing, of the European Economic Area (Articles L. 5112-1-3 and L. 5112-1-5), or to legal persons having their seat in one of those States, the vessel then having to be directed and controlled from a permanent establishment in France where the seat is outside France (Article L. 5112-1-6). Natural persons who do not reside in France, or who reside there less than six months a year, must elect domicile there for administrative and judicial matters relating to the vessel.
The text also provides particular routes of access: finance leasing, where the vessel is intended to belong at least half to qualified persons once the option is exercised; bareboat charter by a qualified person; and, for vessels in commercial service, francisation founded on nautical management actually exercised from France (Article L. 5112-1-3, 2° to 4°). A bareboat chartered vessel keeps the French flag only if it is directed and controlled from a permanent establishment in France during the charter (Article L. 5112-1-4), and its francisation may be suspended, by a flag freeze, to allow it to sail temporarily under a foreign flag, subject to the agreement of the mortgagees (Article L. 5112-1-7).
Registration: entry on a register
Registration enters a francisé vessel on a register of the French flag (Article L. 5112-1-9), and every vessel flying the French flag is registered (Article L. 5112-1-10). It is therefore the administrative consequence of francisation: it gives the vessel its port of registry and its number, which are among its identifying elements together with the name, nationality and tonnage (Article L. 5111-1), and it opens the matricule sheet on which the owners, their shares and the real rights encumbering the vessel are entered (Article L. 5114-3). There are several registers: the ordinary metropolitan register, the French International Register (RIF) reserved for commercial vessels and large commercially operated yachts, and the registers of the overseas collectivities. The choice of register governs the crew’s social regime, the tax position and certain safety rules, and it is among the decisions to be taken before buying a yacht.
It is on the register, and not on francisation, that securities attach. A maritime mortgage is entered in the register of movable securities kept by the registry of the commercial court of the vessel’s place of registration (Article R. 5114-14-1) and reported on the matricule sheet. Likewise, any instrument transferring ownership of a registered vessel must, on pain of nullity, be evidenced in writing with the particulars identifying the parties and the vessel (Article L. 5114-1), and it is that writing which allows the register to be updated.
Enregistrement: a single formality since 2022
Ordinance No 2021-1843 of 22 December 2021 merged the two procedures. Francisation and registration now give rise to the registration of the vessel and the issue of a certificate of registration (Article L. 5112-1-11), delivered by the maritime administration after the formalities have been completed and, beforehand, a safety check in accordance with the regulations (Article L. 5112-1-12). For pleasure vessels for personal use, that certificate also includes the navigation title (Article L. 5112-1-13): a single document replaces the acte de francisation, the carte de circulation and the navigation title. It must be on board any vessel putting to sea (Article L. 5112-1-14). The counter is online: the application, a change of owner, a change of port or of name, the entry of a co-owner and deletion are all made through the maritime administration’s online portal, or through the RIF one-stop shop for vessels on that register.
The documents to be assembled for a second-hand yacht are always the same: the written bill of sale, proof of the buyer’s identity and nationality or the company’s articles and extract of registration, proof of the vessel’s customs status (original invoice showing VAT, import document, or a previous certificate of registration mentioning francisation), the CE declaration of conformity and, for pleasure vessels for personal use of 24 metres or more in length, the tonnage certificate (Article L. 5112-2), vessels under 24 metres not being measured (Article L. 5112-3). For a vessel coming from a foreign flag, a certificate of deletion from the previous register must be added. The usual time is two to four weeks where the file is complete; it lengthens as soon as a document is missing, and the administration regularly rejects applications in which the customs status is not established.
The annual tax on maritime craft for personal use
The former annual francisation and navigation duty disappeared with the reform. Since 1 January 2022 it has been replaced by the annual tax on maritime craft for personal use, codified in Articles L. 423-4 and following of the Code of Levies on Goods and Services. The chargeable event occurs, for each calendar year and for each taxable craft, on the first day of the year in which the conditions of taxation are met, or at the time the registration formality is completed where that happens during the year (Article L. 423-14).
The amount depends on the length of the hull and the power of the engines, with an allowance for age, and the tax is payable by the owner as at 1 January, which has to be settled between seller and buyer on a sale during the year. Vessels in commercial service, including charter yachts operated commercially, are not subject to it but fall under other regimes. For a foreign buyer, that distinction is usually the practical starting point of the whole structuring question.
Deletion, loss of the flag, change of flag
A vessel which no longer meets the conditions of francisation is deleted from the French flag of the authority’s own motion, unless it is subject to a published mortgage (Article L. 5112-1-8). The most frequent case is a sale to a buyer who is neither a national nor a company of the Union or of the European Economic Area: the vessel must then be re-registered on another register, and the seller must obtain a certificate of deletion which the destination register will require. The second case is an owner who leaves the Union without having organised the succession of the flag.
In both situations the existence of a mortgage blocks deletion, and any voluntary operation entailing the loss of francisation of a mortgaged vessel is prohibited (Article L. 5114-6-10). Conversely, a European owner buying a yacht under the Maltese or British flag may have it francisé if he establishes its customs status and obtains its deletion from the previous register. Sequencing those two steps in the right order, and in the right order relative to payment of the price, is what a well-drafted sale contract provides for.
When to consult a lawyer
Three situations recur. A registration application refused or left unanswered because the customs status of the vessel cannot be established, typically a yacht built outside the Union and imported years ago without a traceable file. A deletion ordered of the authority’s own motion after a change in the owner’s situation, or blocked by a mortgage the seller had forgotten. And a change of flag organised alongside a sale, where the certificate of deletion, the payment of the price and the entry on the new register have to be sequenced so that the buyer is never paying for a vessel that is on no register at all.
The firm handles the registration file itself where the position is contentious, the exchanges with the maritime administration and with customs, the release of mortgages before deletion, and the drafting of the sale documents that make the flag transfer work. For a foreign buyer of a yacht in France, the ownership structure, the choice of register and the customs and VAT position are decided together, before signature, because each of them constrains the others. A first assessment is normally possible within a few days on the strength of the vessel’s papers and the draft sale contract.
Buying or selling a vessel under the French flag, or facing a refused registration? The firm handles the file, the customs status and the change of flag alongside the sale.
Frequently asked questions
What is the difference between francisation and registration?
Francisation confers on the vessel the right to fly the French flag, that is, its nationality (Article L. 5112-1-1 of the Transport Code). Registration is its entry on a register of that flag, which gives it a port of registry, a number and a matricule sheet on which ownership and mortgages are recorded (Articles L. 5112-1-9 and L. 5114-3). Since 1 January 2022 both are obtained through a single formality, enregistrement, and a single certificate of registration.
What are the conditions for having a vessel francisé?
The vessel must have been built in the European Union or have paid the import duties and taxes there (Article L. 5112-1-2), and must belong at least half to natural persons who are nationals of the Union or, outside fishing, of the European Economic Area, or to legal persons having their seat in one of those States (Articles L. 5112-1-3, L. 5112-1-5 and L. 5112-1-6). Finance leasing, bareboat charter and nautical management from France provide alternative routes.
Can a non-European national own a vessel under the French flag?
Not on his own. The vessel must belong at least half to qualified persons of the Union or the European Economic Area. A non-European buyer may nevertheless hold it through a company having its seat in a Member State, the vessel then being directed and controlled from a permanent establishment in France where that seat is outside France. Structures of this kind must be examined before signature, since they also drive the tax and customs position.
Does the annual francisation duty still exist?
No. It was replaced on 1 January 2022 by the annual tax on maritime craft for personal use, in Articles L. 423-4 and following of the Code of Levies on Goods and Services. The amount depends on hull length and engine power, with an allowance for age, and it is payable by the owner as at 1 January, which should be apportioned between seller and buyer on a sale during the year. Commercially operated vessels are not subject to it.
What documents are needed to register a second-hand yacht?
The written bill of sale, proof of the buyer’s identity and nationality or the company’s articles and extract of registration, proof of the vessel’s customs status, the CE declaration of conformity and, for pleasure vessels for personal use of 24 metres or more, the tonnage certificate (Article L. 5112-2). For a vessel coming from a foreign flag, a certificate of deletion from the previous register is also required. Two to four weeks where the file is complete.
Further reading: ten checks before buying a yacht abroad, selling a yacht to a foreign buyer, checking that a vessel is unencumbered.
Written by Hervé Guyader, avocat at the Paris Bar, doctor of law. This content is general information and is no substitute for advice on your own matter.