Nowadays, the majority of yachts are registered (i.e. flagged) offshore, with the Cayman Islands, Marshall Islands and St. Vincent remaining the most popular registries, as the flag you choose for your superyacht will have a direct impact on your taxes. In most cases, flagging your vessel offshore enables to avoid taxes on the hull value. The savings can be significant, compared to the sales tax value (TVA or VAT) that would have to be paid.
When it comes to U.S. tax regulation, not only the potential buyer but also the seller have to pay certain taxes in order to settle a potential deal. In order to avoid it, as well as strict manning requirements, many yachts are originally listed for sale with a mark ‘not for sale to U.S. residents in U.S. waters’.
The general policy derives from a 111-year-old law, preventing sales of foreign-flagged yachts to U.S. citizens when the boats are in U.S. waters. The law requires foreign-flagged vessels to pay an import fee even before they are offered for sale to U.S. residents while in U.S. waters.
Over the past years, the International Yacht Brokers Association (IYBA) urged the Congress to change the form of the 1908 law. The bills that have been filed would not remove the tax paid on the boat, but would defer payment of it until after the boat is sold.
This situation also often pertains to a yacht registered in another country that is within US waters on a cruising permit.
IYBA executive director Cindy Sailor, has recently reintroduced the bill to the new Congress in an effort to boost the yachting industry and encourage more sales in U.S. waters. He explained:
We’re not asking to get any sort of forgiveness for paying the duty. We are requesting that the time of collection of the duty be changed to when the yacht is sold, rather than when it goes on the market.
He adds:
It’s counterintuitive to pay the import tax on the value of a boat before you know what the actual selling price is going to be. A 1.5 percent tax is sizable and most yacht owners don’t want to pay duty just to put the boat on the market with the hopes of selling it to a U.S. buyer.
Matt Ruane, director of JTC Marine and Aviation, cites some specific reasons the U.S. flag may not appeal to owners of large yachts.
U.S.-resident master and crew are required for all large yachts, unless operating privately and outside of U.S. waters. A U.S. flag requires US corporate or private ownership, and the concept of nominee directors and shareholders is less understood and thus, less acceptable, essentially meaning that U.S. corporate ownership is more transparent.
Still, according to HMY Yachts, the sweeping tax reform, the Tax Cuts and Jobs Act of 2017, has included some new provisions that can provide benefits on yacht purchases and also yachts for charter that are used for legitimate business purposes. The new bill codes around bonus depreciation and will come in effect through 2022.
With this, up to 100% of the purchase price can potentially be written off as bonus depreciation in the year of the purchase if all requirements are met. And there is no dollar limit to the purchase price. That same depreciation applies to any improvements made to the vessel in the same year as the purchase.
To qualify for these benefits, the buyer must be an entity—corporation, partnership, or LLC—that will use the vessel for a legitimate business purpose, for instance, by purchasing a yacht and using it for charter.
The 56th Southampton International Boat Show will introduce several new features when it returns to Mayflower Park from September 19-28, 2025. Organizers British Marine confirmed a redesigned layout with specialized zones including The Powerhub for powerboats and Angler's Alley for fishing enthusiasts.New additions include: the Boating Academy offering educational sessions, waterside Lounge for premium ticket holders, expanded marina area with grouped vessel displays, on the Water stage featuring high-speed demonstrations. Visitor experiences will include the Try A Boat program with FlexiSail and accessible powerboat rides through Wetwheels. The Shipyard festival area will host live music and family activities, with a headline act to be announced.Ticket prices currently start at £24.99 for adults, with free entry for two children per adult ticket. Marina space remains in high demand among exhibitors, with increased berth capacity for 2025."The 2025 edition represents an exciting transformation," stated British Marine representatives. The event will showcase products ranging from paddleboards to superyachts, though exhibitor lists remain unconfirmed.British Marine, representing over 1,300 UK marine businesses, organizes the annual show which supports an industry employing 38,000 nationwide.Credits: Southampton International Boat Show
April 29, 2025
The General Council of Confindustria Nautica has designated Piero Formenti, owner of Zar Formenti, as President of the Italian Marine Industry Association for the 2025-2029 term. The appointment will be formally ratified at the association's general meeting on May 16 during the SATEC Convention in Rapallo.Formenti becomes the first president representing the small boating sector in the association's history. The selection process saw 79.04% member participation with 94.64% approval votes.Piero FormentiSince founding Zar Formenti in 1979, specializing in inflatable boats, Formenti has served as association director since 2008 and vice president since 2019. He currently holds the position of vice-chair at European Boating Industry (EBI), having previously served two terms as president (2015-2019)."My experience provides a unified vision of the industry," Formenti stated. "Coming from the small boating segment demonstrates our sector's maturity as we address innovation, green economy, domestic market revival, regulatory simplification, and next-generation engagement during challenging economic conditions for small manufacturers."The appointment follows standard association statutes and Confederation of Industry regulations.Credits: Italian Marine Industry Association
April 29, 2025
Nautor Swan will present five maxi yachts at the Palma International Boat Show (April 30-May 3) while its new ClubSwan 43 makes its racing debut at the concurrent PalmaVela regatta. The Finnish builder's display includes the Swan 108 Fancy as centerpiece, alongside Swan 98s Drifter Cube and Alix, Swan 90 Berenice Cube, and Swan 78 Sulita in Port Vell's Superyacht Village.The 33.5-meter Fancy features quarter-cut oak interiors with light brown finishes, accommodating owners and guests across four en-suite cabins plus crew quarters. Three new Swan models (80, 108, 128) remain in development.At PalmaVela, the ClubSwan 43 Vargen will compete in ORC-rated races while maintaining one-design specifications for the brand's racing circuit. Over 110 vessels are participating in the regatta hosted by Real Club Náutico."We're approaching Palma with strong dedication," said Nautor Swan CEO Giovanni Pomati. "This show is becoming one of the most important, thanks to top shipyards and passionate owners." ClubSwan Yachts head Federico Michetti noted: "These are the first races for the ClubSwan 43 under rating rules, and we're continuing its fine-tuning for competitive performance."Nautor Swan was founded in 1966 in Pietarsaari, Finland. The builder entered the superyacht market in 1999. Since then, the yard has continued building high-performance sailing yachts in three different lines; ClubSwan, Swan Yachts and Maxi Swan Yachts. Credits: Nautor Swan
April 29, 2025
Dutch shipyard Vitters has signed a contract to build the 63-meter sailing yacht Project Dreamer, with construction set to begin this year at its Zwartsluis facility. The aluminum-hulled vessel, designed to maximize volume within a 500GT limit, is scheduled for delivery in 2028.Malcolm McKeon Yacht Design will handle the exterior styling, which features a radiused transom and an expansive flybridge spanning the full superstructure width with dedicated lounge and dining areas. The design incorporates a mid-lazarette with fold-down hull door for water toy deployment.Milan-based M2Atelier will develop interior spaces characterized by open layouts, natural materials, and botanical elements. Owner's representative Greg Monks stated the project will "set new standards" for flybridge yachts, emphasizing reduced noise/vibration and sustainable operation.Vitters has not disclosed technical specifications, though the yard confirmed construction will adhere to the client's request for optimized interior volume within the 500GT threshold. Additional details will be released during the build process.Vitters Shipyard is a Dutch high-end performance yacht builder. The shipyard was founded in 1990 by Jan Vitters. The company delivered the first luxury sailing boat, the 28m Aphrodite, in 1993. Vitters Shipyard has a crew of dedicated engineers and craftspeople who have a strong eye for detail and the passion to exceed the expectations of its yacht owners. Credits: Vitters
April 28, 2025
Videoworks has completed an innovative audio-visual and connectivity installation aboard Custom Line Navetta 38 Telli, the new yacht owned by Ferretti Group CEO Alberto Galassi. The system eliminates traditional satellite TV (TVRO) in favor of a fully streaming-based approach, marking a technological milestone for yachts in this size category.The setup includes high-performance Starlink maritime antennas delivering speeds up to 220 Mbps, supported by dual 5G modems as backup. "The owner requested very fast Starlink connectivity offering streaming, internet and multiple pay-per-view services," said Giovanni Varone, Yachting Sales Manager at Videoworks. "This is the first time we’ve installed such advanced systems on a project of this size."Audio features K-array and James loudspeakers for exterior areas, while interior spaces utilize Bang & Olufsen’s Beosound Theatre soundbar and Beolab 19 subwoofer. A custom pop-up speaker system was developed for the beach area, integrated with Videoworks’ Slim Audio Matrix for automatic calibration.Beolab 19Control is managed via an HTML5-based web engine, adapting dynamically to tablets, smartphones, and PCs. Hardware is consolidated into two centralized racks and a dedicated decoder distribution unit."This yacht represents the future of onboard connectivity," said Paolo Tagliapietra, Connectivity Solutions Manager at Videoworks. "The complete reliance on streaming is a game-changer for the industry."The Ferretti Group, led by Chief Executive Officer Alberto Galassi, is now one of the world’s leaders in the construction and sale of luxury yachts and pleasure vessels, with a unique portfolio of brands: Ferretti Yachts, Riva, Pershing, Itama, Mochi Craft, CRN, Custom Line and Wally.Credits: Ferretti Group
April 28, 2025