icon_arrow_down icon_arrow_left icon_arrow_left_large icon_arrow_right icon_arrow_right_large icon_arrow_up icon_bullet_arrow icon_call icon_close icon_facebook icon_googleplus icon_grid_off icon_instagram icon_login icon_mail icon_menu icon_message icon_minus icon_pinterest icon_plus icon_quote_end icon_quote_start icon_refresh icon_search icon_tick_on icon_twitter icon_video_play icon_youtube

Sign up to our mailing list for the latest Boat International & Events news.

SIGN UP

Missing your newsletter?

If you’ve unsubscribed by mistake and would like to continue to hear about the latest Boat International & Events news, update your preferences now and let us know which emails you’d like to receive.

UPDATE NOW
No, thanks
Benefits of yacht ownership through offshore corporate structures

Benefits of yacht ownership through offshore corporate structures

Chartering yachts

More and more we see yacht owners engaging in the prosperous business of chartering (renting their yachts to paying guests).

To make a profit, you will most certainly need a recognized and accommodating flag state and offshore corporate structure. The accommodation comes in the form of prompt surveys when called for by maritime incidents, or the willingness of the flag state to readily allow change of status, for example: from commercial to pleasure use and back depending on the location and actual use to which the vessel is put, etc.

Offshore structures are most assuredly suitable for chartering operations and can produce tremendous benefits to the beneficial owners if the structures are properly created and maintained.

For example, there is no provision in the tax codes of most seafaring nations (the US, England, France and Italy, to name four) that prohibit the use of a yacht as a business. Vessels of all shapes and sizes can be used in a true business, provided the rules are followed in the creation and operation of a true business.

Properly created, organized, marketed and managed yacht chartering operations can result in substantial benefits to the beneficial owners.

Because a proper offshore structure and business will be recognized as valid by most governmental taxing authorities, so-called ‘pass-through’ structures, where the tax benefits and detriments inure ultimately to the benefit or detriment of the beneficial owner and intermediate corporate structures, are disregarded.

In short, a proper chartering business can greatly benefit the beneficial owner by reducing personal income taxes, but this subject is beyond the scope of this article.

Upgrade your account
Your account at BOAT International doesn't include a BOAT Pro subscription. Please subscribe to BOAT Pro in order to unlock this content.
Subscribe More about BOAT Pro