Questions you may be asking yourself
- Can I afford to own a yacht?
- Who will look after the maintenance of my yacht?
- What are my choices at the end of the contract?
- Do I have to pay VAT?
- What happens if I can’t use all my free sailing time?
- Does it matter where my yacht is based?
- Can I upgrade the specification for my yacht?
- Which is the best value Yacht Ownership programme to go for?
1. Can I afford to own a yacht?
You can either pay the full purchase price and earn an income from charter, or put down a smaller percentage and let the charter income pay for the rest. Whichever route you choose, putting your yacht into a Yacht Ownership Scheme will significantly reduce the cost of ownership and allow you to charter a yacht for free in fabulous sailing destinations. You get all the enjoyment with much less headache than with traditional ownership and you own the yacht at the end of the program.
The figures that we provide will allow you to decide which scheme is best for you.
If you intend to use the yacht for more than 2 weeks a year, ownership through a Yacht Ownership Scheme will be less expensive than simply chartering. If you intend to use the yacht less than 10 days, then chartering may be best for you.
“Can you think of any other investment that will give you as much pleasure as a sailing yacht?“
2. Who will look after the maintenance of my yacht?
Whichever Yacht Ownership Scheme you choose, the charter company will be responsible for the upkeep of your yacht. All the fleets we recommend have regular servicing and checks at set intervals, which include an annual haul out for antifouling, polishing and underwater work.
You may be familiar with a charter company from previous holidays and like their approach to yacht maintenance. In general, the larger charter companies want standardised yachts so are better suited for owners who are happy with a couple of weeks use and who, basically, want a completely headache free, not-too-emotional kind of ownership. The smaller companies are better suited for owners who want a more personal involvement with their yacht.
“Don’t spend your precious sailing time, cleaning and repairing your yacht.“
3. What are my choices at the end of the contract?
At the end of your contract, you can collect your yacht, sail away and use her privately or sell her. You will have enjoyed free charter holidays for a few years AND own the yacht at the end of the contract. You will probably take your yacht on some long term cruising or deliver it to her ‘home mooring’ for your own enjoyment.
Or you might want to sell the yacht at the end of the agreement. You can do this yourself or the charter company will assist you through their brokerage team. They will usually start marketing your yacht 6 months before the contract end with a view to finding a buyer who can take hand over at the end of your agreement.
If you opt for a Buy-Back scheme at the start of your contract, you can sell the yacht back to the charter company at a fixed percentage of the purchase price.
Alternatively, you may wish to simply trade in your yacht and start a new contract with a new yacht. The charter company will buy the yacht off you and deduct the sales proceeds from the purchase of the new yacht. On a Guaranteed Income scheme, this will allow you to continue your income uninterrupted.
“Sail away into the sunset or reinvest in another new yacht.”
4. Do I have to pay VAT?
You do not have to pay VAT on a yacht at the time of purchase if it is operated outside the EU, eg. Turkey, Caribbean, etc. A VAT payment will only occur if you decide to import the vessel back into the EU at the end of the ownership contract. VAT is the owner’s responsibility and is payable to the EU country of importation and based on the yachts depreciated value (approx. 50% of original purchase price).
Yachts operating in Spain, France, Italy, Croatia and Greece are already in the EU. Yachts in these locations do require VAT payment upfront, unless purchased through a company. After taking delivery of the yacht at the end of the contract, UK residents are able to keep it in EU waters for 18 months before paying VAT. If the yacht is imported into UK waters, VAT is payable.
5. What happens if I can’t use all my free sailing time?
The Yacht Ownership Schemes allow a certain number of ‘free’ weeks sailing. There are no charter fees payable, although you have to cover the incidental expenses such as end cleaning, insurance and optional extras. Most charter companies allow you to charter your yacht or an equivalent yacht in another of their destinations.
Most charter companies allow close family (spouse, sons and daughters) or your purchase partners to take advantage of the Owner privileges even if you are not on board. Some allow weeks in Low season to be given to friends.
6. Does it matter where my yacht is based?
If you choose to buy your yacht through the Reduced Payment or Guaranteed Income Schemes, it doesn’t matter too much where your yacht is based. As your revenue is guaranteed and you have no operating expenses, it really is hassle-free ownership with access to an exciting choice of worldwide sailing.
If you buy a yacht with a smaller charter company with bases in one country, you will be limited to sailing in that country. However, Nautilus Yachting may be able to buy back some of your owner weeks to allow you to charter elsewhere.
7. Can I upgrade the specification for my yacht?
Under the Self-Run scheme, owners may completely customize the layout as well as the equipment, but the yacht needs to be charter-friendly and easy to maintain. Upgrades can be installed once the yacht leaves the fleet. Under other Yacht Ownership Schemes, your yacht will have the standard inventory for charter but you can pay to upgrade some of the fittings, such as teak decking and electric winches, at your own expense.
8. Which is the best value Yacht Ownership programme to go for?
It’s very subjective and depends on your individual situation. The different schemes offered by different charter companies can be quite confusing. But, don’t worry, we can run through all the options and match them to your own financial position and what you hope to achieve during the term of the contract.