Purchasing a motorboat or sailing yacht—from modest €100 000 vessels to ultra‑luxurious €100 million superyachts—can be financed via a spectrum of methods. Common pathways include:

• Conventional credit/hire‑purchase
• Leasing with Option to Purchase (LOA) via the French and Italian marine financing systems
• Equity‑secured financing by pledging existing yacht equity as deposit or security

How you structure it depends on amount, residency, VAT status, and whether you intend to charter the boat commercially.

Also known as a boat loan or hire‑purchase plan:

• What it is: You borrow the purchase amount (typically 75–80 %) with a personal or company guarantee, repaid over 2–20 years. The yacht serves as collateral.
• Typical terms:
  • Down payment: ~20–40 %
  • Loan term: 5–10 years for new, less for used
  • Rates: Euribor + 3–6.5 % (depending on borrower and structuring)
  • Security: marine mortgage, assignment of insurance/earnings, possibly pledge over holding company shares.
• Best for under €2 million via specialty lenders; some banks can finance up to ~€30 million.
• Advantages:
  • Full ownership post-purchase
  • No usage restrictions
  • Straightforward for coastal/private use

Designed within EU nautical finance frameworks to optimize VAT savings and contractual flexibility:

• How it works:
  • You pay a deposit (typically 25–50 %).
  • The leasing company buys the boat and leases it to you over 3–12 years.
  • VAT on instalments is reduced (e.g. 10 % France, 19.8 % or less Italy), sometimes halved or drop to 6% for yachts over 24 m.
  • At term end, you have option to purchase at a residual value (1–5 %).
• Key parameters:
  • Minimum financed value (ex‑VAT): ~€250 000 (no upper limit).
  • Deposit: 25–50 %
  • Duration: 3–8 (up to 10–12) years.
  • Structure available to individuals or companies; used/new boats eligible.
  • VAT benefits:
  • Reduced VAT base on instalments; possibly fully VAT‑free if vessel operated as charter in EU.
• Why choose leasing:
  • Lower VAT cost, cashflow flexibility, modest wealth visibility (contractual lessee rather than outright owner), transferable contracts.

For higher‑value purchases, buyers may leverage equity in an existing yacht or asset:

• Option 1: Use your current yacht’s equity as deposit or collateral.
• Option 2: Hybrid loan structures including construction finance (for new builds).
• Typical in superyacht sector:
  • Large construction loans (> €15 million) governed by tripartite agreements among owner, bank, shipyard.
  • Potential interest‑only draw-down phases, fixed or floating rate options.
• Benefits:
  • Access greater liquidity without full cash layout.
  • Flexible structuring for complex builds.

• EU fiscal residency is often required to access leasing through French/Italian systems.
• Financial institutions may demand bank account, assets, or company setup within EU.
• Charter businesses may gain VAT-free leasing, but must be legitimate commercial operations. Private owners may be permitted part-time charter under lease terms.
• Minimum vessel age for leasing often ≤ 5 years; new builds considered separately.
• Insurance & survey: lenders require marine insurance assignment and detailed valuation/survey before drawdown.

• Deposit: €125 000 (25 %)
• Financing method: French LOA over 7 years
• VAT: ~10 % on instalments vs. 20 % upfront
• Residual: ~3 %
• Outcome: Lower total VAT, manageable monthly payments, option to buy at end.

• Financing: Tripartite construction loan with shipyard + equity as collateral
• Structure: Interest‑only initial phase, then amortizing
• VAT: structured via holding company, potential charter income VAT offset
• Outcome: Phased financing aligned with delivery milestones — liquidity preserved

1. Determine your use case: private vs charter; new vs used; EU resident?
2. Estimate budget and desired loan amount.
3. Seek specialized providers:
   • For traditional credit: institutions like CGI Finance, PSkipper, Cetelem in France.
   • For LOA: French (e.g. Société Générale’s CGI Finance, LIZmer) or Italian lease providers.
   • For large deals: private banks or yacht‑finance specialists (e.g. Bank of America Private Bank, other EU private banks).
4. Prepare documents: proof of income/assets, EU residency (if required), vessel details, intended use.
5. Compare term‑sheets: deposit %, interest margins, VAT treatment, residual, early pre-payment penalties.
6. Finalize contracting, complete any VAT/charter registration and insurance assignment.

• Tax savings: Optimizing VAT can yield thousands to millions in savings.
• Cash flow flexibility: Spreading payments lets you retain liquidity.
• Access to bigger yachts: Loans and equity financing enable ownership of high‑value vessels.
• Structured risk: Leasing or loan structures protect credit profiles and control public visibility of ownership.

• For €100 000–€2 million vessels, hire‑purchase or personal boat loans are common and manageable.
• For €250 000 upward, especially when keen to reduce VAT, French or Italian LOA is compelling.
• For high‑end builds or charter business, explore tailored construction loans and equity‑based financing.
• Work with reputable marine finance advisers or brokers—EU lenders expect detailed dossiers, so early planning pays off.

Disclaimer

This content is informational and does not constitute financial advice. Terms vary by lender, shipyard, and country. Always consult qualified providers, tax advisors, and marine finance experts before signing any contract.