A Canadian’s guide to buying a boat in the US

If you’re looking to buy a boat, your options may be limited in Canada — for a better selection, you can consider buying in the US. In this guide, you’ll get an overview of the rules and regulations to be aware of when purchasing a boat from the US. We’ll also look at how Wise can help you make large international transfers, with no hidden markups on FX fees.

Can a Canadian buy a boat in the US? Yes—but here’s what is important

Before buying a boat in the US, you should review the legal requirements, necessary paperwork, and any taxes and duties you’ll need to pay.

Legal requirements for non-residents of the US

Once you buy your boat in the US, it’s considered an unregistered vessel. To move it out of its port, you’ll need to file a Form 1300 with US Customs¹.

You’re allowed to register it in a US state, but it will be considered a foreign vessel — to operate it in US waters, you’ll need permission to enter each port or a cruising license allowing you greater freedom of movement².

Registration, documentation, and proof of ownership

If your boat is unregistered in Canada, you’ll need a Pleasure Craft License to operate it there³. This requires proof of ownership, like a bill of sale or a purchase agreement⁴.

Additionally, you need a Pleasure Craft Operator Card to show that you can safely operate your boat. To get one, you’ll have to take a boating safety course and pass a test³.

Importing your boat to Canada: Taxes, duties, and paperwork

When you bring your boat into Canada, you’ll need to show paperwork at the border and pay import taxes and duties.

What you need at the Canadian border

If you go through a land border crossing, you should declare your boat and boat trailer to the border services officer⁵. All processing will take place at the land border.

If you cross at a marine border, you’ll need to⁵:

1. Call the Canada Border Services Agency (CBSA) telephone reporting centre at 1-888-226-7277 as soon as you reach the border at a designated marine site.
2. Declare the boat to the border services officer and follow their instructions.

Processing will take place at the marina or at the closest CBSA office.

In both cases, you’ll need to have a **bill of sale **and **proof of ownership ready **to present to a border services officer⁵.

Taxes and duties owed upon arrival

You’ll pay GST or HST on your boat when you arrive in Canada. Taxes are calculated from the boat’s Canadian dollar value, and the amount owed varies depending on your province of residence⁶.

Certain vessels with a taxable amount over $250,000 are also subject to a luxury import tax, equal to either⁸:

• the taxable amount multiplied by 10%
• 20% of the difference between the taxable amount and $100,000

You won’t pay both of those amounts — only whichever one is the lowest⁸.

Transporting the boat from the US to Canada

There are several ways to get your boat from the US to Canada. Let’s take a look at what you should know about them and how much you can expect to pay.

Overland vs water transport

The cheapest way to transport a boat from the US is overland transport, whether you buy a boat trailer yourself or hire a third party. If your boat is too big to travel by land, you’ll need to ship it by sea instead.

Overland vs Water Transport Comparison

Do I need to register my US boat in Canada?

You can operate your boat in Canada as long as you have a Pleasure Craft Licence and Pleasure Craft Operator Card. You’ll only have to register it in the Canadian Register of Vessels if: ³

• you’re going to use it commercially
• you plan to use it outside of Canada
• you need a mortgage or reserved name

If your boat is registered, you won’t need an additional Pleasure Craft License³.

Currency conversion and transferring funds securely

A boat is a big investment, and you should be able to trust that your money will reach its destination safely. Here’s what you need to know before you make the transfer.

Why large transfers need extra attention

There are a few things you need to watch out for with large transfers, especially when transferring money abroad. Banks typically add hidden markups to foreign exchange rates — and intermediary banks involved in transferring your money from Canada to the US can charge extra fees without telling you up front.

Your bank may also have limits on how much money you can send abroad, or require you to visit a branch in person for transfers over a certain amount.

Typical FX margin and fees on a $150,000 purchase

Using Wise for high-value USD to CAD transfers

Wise is a secure and regulated service provider that makes it easy to transfer large amounts of money abroad. Here’s how¹⁵:

1. Add the amount you want to send and your recipient’s bank details.
2. Upload the required documents to show where your money’s coming from — Wise will show you what you need on the screen.
3. Choose your payment method and finalize the transfer.

To avoid having to pay in person at a bank branch, you can also open a Wise balance in CAD and add money to it in smaller amounts until you’re ready to start your transfer.

If you’d like dedicated support, you can reach out to Wise to help guide you through the process.

What else to consider when buying a US boat?

Here are a few more things to consider when making your purchase.

Survey and inspection

Before you purchase your boat, make sure to have it inspected by a marine mechanic to ensure everything is in working order. You’ll also want to get a signed and notarized bill of sale from the seller, and double-check the relevant serial numbers against what’s written there and on the boat’s title documents¹².

Insurance and liability

Boat insurance isn’t legally required in Canada¹⁶. However, it’s still a good idea to invest in an insurance plan, so you’re financially protected in case of damages or injuries.

Conclusion

Buying a boat in the US means more options, and you may get a better deal on the boat of your dreams than you would in Canada. To help your purchase go smoothly, you should plan ahead for import processes and any documentation you’ll need when you bring the boat back home. For large money transfers, Wise is a secure option you can use to avoid hidden markups on FX fees, with transparency at each step of the process.

Sources:

1. Border Buddy | Importing a Boat into the US
2. American Vessel Documentation | Ownership and Registration of Vessels by Foreign Citizens
3. Transport Canada | Apply for or manage a Pleasure Craft License (PCL)
4. Transport Canada | Apply for or manage a Pleasure Craft License (PCL) | What you need before you start
5. Canada Border Services Agency | Importing marine pleasure craft
6. Government of Canada | GST/HST on Imports and exports
7. Government of Canada | Charge and collect the tax - Which rate to charge
8. Government of Canada | Subject Vehicles Under the Select Luxury Items Tax Act
9. Wise | 5000 USD to CAD
10. Owens & Sons Aluminum Slide-On | How Much Do Boat Trailers Cost?
11. National Vessel Registry | Shipping a Boat from USA to Canada: Costs & Other Details
12. Border Buddy | How to Import a Boat into Canada
13. ShipLux | Boat Shipping
14. Wise | Large Amount Transfers
15. Wise | The Wise guide to sending large amounts.
16. TD Insurance | Boat Insurance 101