The hidden costs of owning a yacht: What every buyer should know

2 June 2025 • Written by Holly Margerrison

BOAT breaks down the key hidden costs of owning a yacht – and how best to prepare for them.

For many, buying a yacht is the ultimate lifestyle investment – but the purchase price is just the beginning. From ongoing maintenance to crew salaries and insurance, the hidden costs of yacht ownership can quickly add up. Whether you are buying a sailing yacht, a motor yacht or a superyacht, understanding these additional expenses is essential to managing your investment.

Yacht maintenance and repairs

Routine maintenance is one of the most significant ongoing expenses. Industry experts typically estimate annual maintenance costs at around five to 10 per cent of the yacht’s original purchase price. This covers everything from mechanical servicing and painting to replacing worn equipment and general wear and tear.

Larger yachts, particularly those over 30 metres, often require yard periods every few years for more intensive works such as full repaints, refits and machinery overhauls. Neglecting regular upkeep not only affects performance and appearance but can seriously impact a yacht's long-term value.

Insurance and liability costs

Courtesy of Burgess

Yacht insurance is mandatory in most regions and is often based on a percentage of the vessel’s value. On average, owners should expect to pay between 0.5 per cent and two per cent of the yacht’s value annually for comprehensive coverage, depending on factors such as cruising areas, yacht type, and claims history.

Insurance policies typically cover hull damage, third-party liability, crew insurance and, in some cases, piracy and war risks if the yacht ventures into higher-risk territories. Owners should work with a reputable marine insurance broker to ensure they have the right level of protection.

Docking, mooring and marina fees

Portonovi, Montenegro marina

Where and how a yacht is berthed can also make a significant difference to ongoing costs. Prime marina berths in popular cruising destinations like Monaco, Saint-Tropez or the Caribbean can command six-figure annual fees for large yachts.

Some owners opt for long-term leases in marinas, while others pay transient docking fees, which fluctuate based on the season, yacht size and berth availability. Additional costs such as shore power, water supply, waste disposal and security services often apply on top of basic mooring fees.

Crew salaries and operational costs

Courtesy of World Yacht Group

Running a yacht of any size often requires a skilled crew. The number of crew members needed depends on the yacht’s size and intended usage, but even smaller yachts may need a captain, deckhand, stewardess and engineer.

Crew salaries, including health insurance, training and travel expenses, are a major ongoing cost. For superyachts, these costs can easily exceed hundreds of thousands of pounds per year. Ensuring your yacht is operated by a professional, well-trained crew is key to preserving its condition, safety and overall enjoyment. BOAT's sister publication Dockwalk runs an annual Salary Survey that aims to create greater transparency and understanding of crew compensation for both captains and crew.

Fuel, provisioning and cruising expenses

Courtesy of Burgess

Fuel consumption can be a major expense, particularly for larger motor yachts or for yachts undertaking long voyages. Fuel costs fluctuate widely depending on the region and fuel type, and owners planning extensive cruising should budget accordingly.

Beyond fuel, provisioning for guests and crew, port clearance fees, pilotage costs and maintenance while underway can quickly mount up, especially in remote cruising grounds.

Regulatory compliance and taxes

Courtesy of NEXT Yachting

Owners must also consider the cost of regulatory compliance. This includes flag-state requirements, safety inspections (such as ISM and ISPS compliance for commercial yachts), radio licences and certification renewals.

In some jurisdictions, owning and operating a yacht may trigger VAT, import duties or other local taxes. For example, purchasing a yacht within the European Union or keeping a yacht in EU waters can lead to VAT charges of up to 20 per cent or more, depending on the country.

Working with an experienced yacht management company or legal advisor can help owners navigate the complex web of international maritime regulations.

Depreciation and resale considerations

Courtesy of Burgess

Finally, owners should be aware that yachts typically depreciate over time, particularly production yachts or those without strong charter records. While certain custom or pedigree yachts may hold value better than others, a yacht should be viewed as a lifestyle investment rather than a financial one.

Factoring in the cost of depreciation – and potential resale brokerage fees – can give a more realistic view of the true cost of ownership.

For more expert superyacht tips and essential yachting advice, explore our latest yacht advice guides.