Luxury Yacht Charters: Corporate or Pleasure Charters to Thailand, Italy, Spain, France, Florida, Croatia, Balearics and Greece on board Ferretti, Pershing, Custom Line, Mochi, Riva & Itama Luxury Yachts

YACHT REGISTRATION & CHARTERING

In the last few years there has been a marked switch in commercial merchant shipping registrations usually associated with traditional countries such as Great Britain, Holland and Greece to offshore jurisdictions such as the Isle of Man, the British West Indies, Liberia and Panama.

With the right advice yacht owners can enjoy these low tax and sometimes tax free locations. It may also be possible to charter your yacht without any major tax repercussions – not forgetting the possible lower registration fees these locations offer.

Due to the increasing use of offshore registrations it is not uncommon to see yachts of any size in many marinas flying a respected flag such as the `Red Ensign` as if it were registered in Great Britain - instead of one of its offshore islands such as the Channel Islands, which is only a 30 minute journey from the UK mainland.

In some instances for those yachts being used within European Union waters it may also be possible to buy a yacht through a tax exempt company located in one of the UK’s colonies such as the Isle of Man – reclaiming back the VAT by registering for VAT on the island.

At the time of writing (Jan 09) it may also be possible to reduce the VAT paid on a yacht within the EU by registering the yacht in Madeira, which is part of Portugal (full member of the EU) and has benefited from the European Union Regional Aid Program. Both the Portuguese Government and the EU Government have legislation in place to enable Madeira to have a low tax regime, which compares very favourably with the rest of Europe.

CHARTERING YOUR YACHT & RECLAIMING VAT

In the UK the current rate of VAT is 15%, which is a temporary measure and will increase again in 2010 to 17.5%. In other European countries the rate of tax is even higher. Therefore any method that might enable you to reclaim the VAT, what ever the rate in your European Country and to enable you to use the yacht within European waters has to be an attractive option.

In order to reclaim the VAT it is essential to show that your yacht is being used in a reputable commercial venture – such as offering and marketing your yacht for charter to fee paying clients ideally through a reputable charter broker such as Folio Charter, not just to immediate family and friends. As the yacht is now part of a trading business it is possible to reclaim the VAT, which has been charged in the normal day to day running expenses of the yacht. The form in which the company takes depends on which European country you set up the business, but usually within the British Colonies a limited liability company (Ltd) is the most common option as it allows for personal liability protection etc.

In recent year’s European Tax & Customs officials have become more aware that yachts are being purchased by companies just for the use of the Company Directors families and friend’s, or for the occasional business meeting. In order to avoid a claim by the authorities it is essential to have an independent yacht management & control system in place and there are a number of specialist yacht management companies within Europe who can assist you in the running of your yacht.

Disclaimer - Every effort is made to ensure the accuracy of the information contained within this page, however, whilst they are regularly reviewed and updated Folio Charter wishes to stress that it is the responsibility of the reader to independently check the accuracy of the information before taking any action or entering into any commitment based upon that information. The information is simply shown as a guide and does not constitute a contract or agreement of any kind.

Once you have chartered a beautiful yacht, you may well have fallen in love with the unique lifestyle, pleasure and freedom such a craft can bring to you.

If you are considering yacht ownership, so that you can sail whenever you wish - to wherever you desire, Folio Charter will be only too pleased to recommend a Ferretti Group dealer, who will help you find the most suitable yacht to match your requirements.

Contact one of our consultants today for more information.