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.

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.

• 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

• 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.

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