Buying and owning a superyacht

At a glance

• Who it is for: prospective owners of yachts of roughly 24 metres and above, and charter clients considering ownership.
• The three things that matter most: chartering first to learn what you want; independent surveys and a clean registry and VAT history; and a realistic annual budget — running costs are commonly estimated by industry sources at around 10 per cent of purchase value a year, though this varies widely.

Understanding the market

• Segments: motor and sailing; production, semi-custom and full custom; explorer/expedition; classic yachts.
• Value drivers: builder and naval architect reputation; age and refit history; class status; condition; layout and guest/crew capacity; range and cruising grounds; tender and toy capacity; compliance with current regulations.
• Brokerage (pre-owned) offers immediate use; new builds can take several years from contract to delivery.
• Most yachts depreciate; well-maintained yachts from leading yards tend to hold value better, but there is no guarantee.

Ways to own

• Charter: weekly charter gives you experience of size, layout, crew and cruising grounds with no ownership risk. When chartering, check the charter agreement (MYBA terms are common), the advance provisioning allowance (APA), VAT on charter fees, the yacht's commercial registration and the broker's credentials.
• Pre-owned purchase through a broker.
• New build or semi-custom build with a shipyard.
• Shared or syndicated ownership (less common at superyacht scale; governance is critical).

Where and how to buy

• Appoint a buyer's broker; the seller's central agent represents the seller.
• Typical brokerage sequence: offer → memorandum of agreement (MYBA form is common) → deposit into escrow → sea trial and survey → acceptance or rejection → closing, bill of sale and registration.
• New build: yard selection, specification and general arrangement, build contract with staged payments, refund guarantees, owner's representative and project management, sea trials and delivery.

Due diligence and authenticity

• Independent condition and valuation survey, including out-of-water hull inspection, machinery, systems and electronics.
• Class society status, outstanding recommendations and survey schedule.
• Flag state registration, certificates and compliance (e.g. large yacht codes for commercial charter).
• Title and mortgage searches on the ship registry; confirm no liens (crew wages, suppliers) attach.
• VAT/customs status: evidence of how VAT was dealt with historically, especially for European cruising.
• Sanctions screening of the seller and prior owners.
• For new builds: yard financial standing, refund guarantees from a reputable bank, and the warranty regime.

Costs of acquisition and ownership

• One-off: broker commission (usually paid by the seller in brokerage), surveys, legal and escrow, registration, VAT/import costs if applicable, refit or rebranding.
• Annual: crew wages and benefits; insurance; berthing and marina fees; fuel; maintenance and refit reserve; class and flag fees; management company; communications and IT; provisioning; dockyard periods.
• Periodic: major refits and class renewal surveys can be very substantial.

Structure, tax and regulation — topics to raise with your advisers

• Flag choice and its implications for crew, safety codes, charter and resale.
• Private versus commercial (charter) operation and the codes that apply.
• VAT and customs: where the yacht will cruise, temporary admission rules, and charter VAT.
• Ownership vehicle and management agreements; employment of crew and applicable labour conventions.
• Personal use of a company-owned yacht.

Insurance, storage and security

• Hull and machinery; protection and indemnity (P&I) for liabilities including crew; war risks; cruising-area limitations.
• Security: guest and crew vetting, cyber security of navigation and communications systems, piracy-risk areas.
• Winter berths and shipyard slots should be booked early.

Care and maintenance

• An annual maintenance cycle plus class and flag surveys; plan yard periods outside the season.
• A good captain and management company are central to condition and value.
• Keep complete maintenance and refit records.

Using and enjoying

• Season planning (e.g. Mediterranean summer, Caribbean winter) and repositioning.
• Charter income can offset costs but adds wear and reduces owner availability; it does not usually make a yacht profitable.

Selling and exit

• Appoint a central agent; prepare survey and records; ensure class and certificates are current.
• Time listings around the major boat shows and charter seasons.

Red flags

• Lapsed class or unclear VAT history.
• Reluctance to allow a haul-out survey.
• New-build yards unable to provide bank refund guarantees.
• Crew-wage or supplier liens.

Questions to ask your advisers

1. Which flag and operating model suit my intended use and cruising grounds?
2. What VAT or customs exposure arises where I plan to cruise or charter?
3. How should ownership and crew employment be structured?

Glossary

MYBA

Mediterranean Yacht Brokers Association, which publishes widely used contract forms

APA

advance provisioning allowance, paid on top of the charter fee to cover fuel, food and running costs

Class

certification by a classification society that a vessel meets construction and maintenance standards

Flag state

the country of registration whose laws govern the vessel

P&I

protection and indemnity insurance covering third-party liabilities

Central agent

the broker appointed by the seller to market the yacht

Specialists you may need