๐ Key Tax Considerations When Buying a Yacht Abroad 1. Value Added Tax (VAT) VAT is one of the biggest costs yacht buyers overlook. Location VAT Rate Applies If… EU countries 15% - 25% Yacht is used or kept in EU waters UK 20% Yacht is imported or operated in UK USA ~0% Federal (but state tax may apply) Depends on state and use 2. Import Duties & Customs Tax If you’re importing a yacht for sale from a non-EU country (like Turkey, USA, or Asia), customs duty may apply (typically 1.7% in the EU), plus VAT. USA: No federal import duty for U.S.-built yachts, but state use taxes apply (up to 10%). EU: Import duty + VAT is calculated on the CIF value (Cost + Insurance + Freight). ๐งพ Registration, Flagging & Tax Residency 1. Yacht Registration (“Flag State”) The flag you sail under affects not just regulation—but also taxes. Popular Flag States Tax Benefits Notes Malta VAT schemes for leasing EU-compliant Marshall Islands No VAT Popular for privacy Cayman...
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