Smart investment: Why can buying a boat for charter be tax-efficient?

More and more sailors and yacht enthusiasts are discovering that buying a yacht is not just a dream come true, but also a strategic financial decision. At Five Seasons Yachting, we accompany our customers on this journey and advise them not only on choosing the ideal boat, but also on optimising their investment through charter operations.

What does it mean to operate a boat under charter?

Chartering out a boat means offering it for commercial use to customers who wish to sail with or without a crew for certain periods of time. This activity not only generates income, but also significant tax and depreciation benefits, especially if it is structured correctly. The main tax advantages:

1. the recovery of value added tax (VAT)

If the boat is purchased through a charter company, the VAT on the purchase can be refunded, which in many cases can be more than 20%. This represents a very significant immediate saving.

2. accelerated amortisation

Charter ships can be depreciated more quickly, so that a significant portion of the ship's value can be deducted as an expense each year. This significantly reduces the tax burden on profits.

3. deduction of operating expenses

Fuel, maintenance, insurance, berthing, mooring, management and even improvements to the vessel may qualify as deductible expenses, provided the vessel is operated under a properly registered charter party.

4. personalised tax planning

Each country has its own regulations and a well thought-out structure (e.g. with a company in Spain, Malta or Croatia) can further optimise tax efficiency. At Five Seasons Yachting, we work with specialised advisors to create a tailor-made plan for you.

Passive income and personal use

Apart from the tax aspect, many owners choose this option because it allows them to earn an income while they are not using their boat and at the same time gives them the opportunity to use it during certain seasons. It is the perfect combination for those who want to combine an investment with their passion for sailing.

Is that something for you?

If you are considering buying a boat or already have one in mind, we invite you to discover how you can turn it into an efficient and legally optimised source of income.

At Five Seasons Yachting, we help you with everything from purchasing and charter management to legal and accounting issues. Contact us and discover how your next boat can also be your next smart investment.