25 September 2025 Navigating the complexities of Yacht ownership

The changing face of ownership

Over the past decade, the profile of yacht owners has shifted dramatically.

“The older generation is exiting the industry and we’re seeing younger, tech-driven entrepreneurs stepping in. Shows like Below Deck may have glamorised the lifestyle, but the reality is far more demanding,” says Heap.

This new wave of owners often charter over buying their own yacht, sometimes influenced by celebrity or influencer culture. But chartering is not without its own financial realities.

“Chartering a 70-metre yacht can cost upwards of €600,000 a week. For some owners, it’s a way of offsetting running costs, but it’s never a profit-making exercise. At best, you mitigate expenses,” he explains.

Why structuring matters

While the luxury of yacht ownership captures attention, the foundation of a successful ownership experience is built long before the vessel has sailed. The question isn’t just what yacht to buy, but how to own it.

Many first-time buyers assume they can simply register a yacht in their own name. While legally possible, doing so often exposes them to unnecessary risks.

“Separating yacht ownership into a corporate structure isn’t just smart asset management, it’s essential. Anything that happens within the yacht stays within that company, protecting the wider family estate,” explains Heap.

1. Liability protection

A yacht is not only a lifestyle asset but also a floating workplace and hospitality venue. With guests, employees (the crew) and significant operational risks, owners are exposed to potential claims. Holding the yacht within a dedicated company ring-fences liability and protects personal wealth.

2. Proper tax structuring and VAT planning

Operating across international waters introduces complex cross-border tax obligations. Europe in particular applies stringent VAT rules. Choosing the right jurisdiction for registration, such as the Isle of Man, can significantly optimise costs.

“It’s not unusual to see a superyacht anchored briefly in Douglas Bay. Often, it’s likely for VAT importation purposes, giving the vessel the right to cruise in European waters,” Heap notes.

Without proper structuring, owners risk double taxation, unexpected VAT bills or even restrictions on where they can cruise.

3. Succession and wealth planning

Yachts are often family assets, enjoyed across generations. Without forward planning, inheritance or succession can create complications, disputes or costly restructuring. Embedding the yacht within a trust or corporate framework allows for smoother generational transfer, aligning with the broader family office strategy.

“We encourage clients to think of their yacht in the same way they would an art collection or a property portfolio, as an asset that requires foresight, planning and professional governance,” says Heap.

4. Reputation and compliance

High-profile owners are increasingly conscious of how they are perceived. Proper structuring signals that the asset is being managed with transparency and professionalism, reducing reputational risk in a world where luxury assets often come under media and regulatory scrutiny.

The reality of costs

The saying “a million a metre” remains apt for superyachts. 

The romance of owning a superyacht often fades when owners confront the financial realities. The purchase price is only the beginning; what follows is a continual cycle of operating costs, maintenance, crew salaries and unforeseen expenses.

A commonly cited rule of thumb is that a superyacht costs 10–50% of its purchase value to run every year. That means a €20 million vessel could easily require €2–10 million annually in upkeep.

“New owners often underestimate the ongoing costs. Without realistic budgets and a strong captain, you can run into trouble very quickly,” warns Heap.

Key cost drivers owners face:

Crew salaries and benefits: A 70-metre yacht may employ more than 20 crew members. Senior staff, such as captains and chief engineers, can earn €15,000–20,000 per month, with rotational contracts doubling the expense. Healthcare and training are additional obligations under maritime law.

Fuel: Depending on cruising patterns, fuel bills can reach hundreds of thousands of euros annually. Even idling in harbour has a cost.

Insurance: Comprehensive cover is essential and premiums are high given the risks - collision, damage, piracy or environmental liabilities.

Port fees and docking: Prime berths in Monaco, St Tropez or the Caribbean can command eye-watering daily rates.

Maintenance and refits: Regular servicing is non-negotiable. Shipyard periods are required every one to two years, often costing millions and dry docks book up well in advance.

Unexpected failures: “These are massively mechanical assets, operating in corrosive saltwater environments,” Heap notes. “You always need a float in your budget for the unexpected - an engine failure, electrical issues or safety upgrades.”

Depreciation

Unlike fine art or prime real estate, yachts rarely appreciate in value. Depreciation is inevitable, particularly for larger motor yachts. While some costs can be offset through chartering, very few owners break even.

“A yacht should never be treated as an investment. It’s a passion asset, something you do because you love the ocean, not because you expect a return,” Heap explains.

The status trap

Heap warns against buying a yacht purely as a status symbol:

“If you’re only buying to compete with your peers, you’ll quickly find the costs outweigh the benefits. Charter first, test the waters and only buy if you genuinely have yachting in your blood.”

Crew: The human factor in yachting

Superyachts are more than assets; they are floating workplaces, homes and hospitality venues. At the heart of every yacht is its crew and their wellbeing and performance can make or break the ownership experience.

“Happy crew, happy yacht. If you have trouble with your crew, you’ll have trouble with your yacht - it’s that simple. The captain, above all, makes or breaks the ownership experience,” says Heap.

Rising expectations

Today’s crew members expect more than a salary. Senior staff often request rotational contracts (two months on, two months off), doubling costs for owners. Healthcare, insurance and ongoing training are mandated by the Maritime Labour Convention (MLC) and failure to comply can put owners in breach of international regulation.

Confidentiality is also critical. Crew are bound by strict NDAs, limiting what they can share on social media or with peers; both to protect owner privacy and to reduce security risks.

Safety in the spotlight

Crew safety has become a pressing issue following recent high-profile incidents.

“Recent cases shocked the industry,” Heap reflects. “It highlighted how vulnerable crew can be in close living conditions and the absolute responsibility captains and owners carry for safeguarding their teams.”

The case underscored several truths:

• The captain bears ultimate responsibility for vetting and managing the crew
• Employment agencies must conduct due diligence, but owners should not rely solely on third parties
• Liability sits with the ownership structure. If something goes wrong, the corporate entity (and by extension, the owner) may be drawn into legal or reputational fallout

Heap adds:

“Owners need to realise that employing crew is not just about service; it’s about duty of care. Vetting, contracts, welfare and safety protocols must be watertight. Anything less puts the crew and the owner at risk.”

The hidden cost of crew welfare

Meeting modern crew expectations, from fair contracts to wellbeing initiatives, is not optional. It is central to retaining talent and protecting the long-term value of the yacht. But it comes at a price: rotational contracts, professional healthcare and training costs drive budgets higher.

For Oak, this reinforces the importance of structuring ownership correctly:

• To ensure liability is ring-fenced within a corporate entity
• To create clear governance between the owner, captain and management company
• To demonstrate compliance with international labour standards

Maintaining ESG standards 

Few industries are under as much scrutiny as super yachting when it comes to environmental, social and governance (ESG) issues. By their nature, yachts are fuel-intensive, globally mobile and carbon heavy. Yet owners, particularly younger, entrepreneurial ones, are increasingly conscious of sustainability and governance and expect their assets to reflect these values.

“Let’s be honest, yachts are not environmentally friendly. Owners and crew do what they can, beach clean-ups, waste management, hybrid propulsion on newer builds, but it’s impossible to call the industry carbon neutral,” Heap admits.

Environmental challenges

• Fuel consumption: Large motor yachts consume thousands of litres of diesel each day at sea. While hybrid propulsion systems and battery technologies are emerging, these are still in their infancy.
• Maintenance and waste: Every refit or dry-docking generates significant waste, with shipyards under increasing pressure to improve recycling and reduce pollutants.
• Crew and guest travel: Even when the yacht is idle, crew rotations and guest flights contribute heavily to carbon emissions.

Social responsibility: Crew welfare

The “S” in ESG has become just as important. Crew welfare is now a central issue for owners and managers. The Maritime Labour Convention (MLC) sets minimum standards, but expectations are moving higher; rotational contracts, mental health support and professional development are increasingly demanded.

“Owners need to realise that employing crew is not just about service; it’s about duty of care. Welfare and safety protocols must be watertight. Anything less puts the crew and the owner at risk,” says Heap.

Governance: Structuring for accountability

Yachts are not just lifestyle assets; they are also corporate entities with global visibility. That means governance matters. Owners are expected to demonstrate that:

• Employment structures are compliant with international law
• Tax and VAT obligations are met transparently
• Safety, welfare and environmental policies are in place

For Oak, governance is where structuring plays a pivotal role:

• Ring-fencing liability within a corporate structure protects both owner and crew
• Transparent ownership demonstrates good faith in the face of regulatory or media scrutiny
• Embedding the yacht within broader trust and corporate frameworks aligns it with the family’s overall ESG commitments

A pragmatic outlook

Heap is realistic:

“You’ll never make a yacht carbon neutral, but you can make it more responsible. That means thinking carefully about how you operate, how you treat your crew and how you structure ownership.”

For forward-looking owners, ESG is less about chasing perfection and more about showing responsibility; to regulators, to society and to the next generation of family members who will inherit the asset.

Common pitfalls for first-time owners

Even experienced business leaders can stumble when they step into yacht ownership. Unlike other luxury assets, superyachts come with hidden operational, financial and regulatory layers. Oak often sees the same themes repeated:

• Costs and complexity are underestimated: Running costs, from crew salaries to maintenance, often reach 10–50% of a yacht’s value each year. Without forward-looking budgets and clear oversight, operating costs can spiral.
• Maintenance is overlooked: Yachts need scheduled refits and shipyard time, often booked far in advance. Failing to plan can result in costly delays or safety risks.
• Motivations matter: Buying purely for status rarely ends well. Those who see yachting as a lifestyle commitment, rather than a financial play, derive far greater satisfaction.
• Inadequate structuring: Entering ownership without a robust legal and corporate framework exposes families to unnecessary risk — financial, legal and reputational.

In short, first-time mistakes are predictable and avoidable. With realistic budgets, clear structures and the right motivation, a yacht can deliver extraordinary experiences. Without them, it risks becoming a costly burden.

The role of professional structuring

For many owners, the joy of yachting quickly collides with the complexity of ownership. From liability to VAT registration, from compliance to succession planning, the details can become overwhelming without the right support.

That’s where Oak comes in. As part of its wider trust and corporate services, Oak ensures that yachts are structured and managed with the same care as any other significant family asset.

“Our role is to take away the complexity, structuring ownership, navigating VAT and ensuring compliance, so that clients can focus on enjoying their yacht. With the right planning, it’s also far easier to pass that yacht to the next generation,” explains Heap.

By embedding yachts within robust corporate and trust frameworks, Oak helps families:

• Protect personal wealth by ring-fencing liability
• Navigate complex international tax and VAT regimes
• Demonstrate good governance and regulatory compliance
• Integrate yacht ownership into long-term estate and succession planning

In other words, Oak doesn’t just support the purchase of a yacht, it ensures the ownership journey is sustainable, secure and aligned with the family’s wider wealth strategy.

Monaco Yacht Show 2025: What to expect

While the show will dazzle with new launches and luxury showcases, Heap predicts the real conversations will focus on:

• Crew welfare and safety standards
• VAT structuring and jurisdictional advantages
• ESG and sustainability challenges
• The rise of younger, tech-driven buyers

“The Monaco Yacht Show is where wealth, regulation and lifestyle collide. Owners are realising that professional structuring is just as important as the yacht itself,” he says.

Final word

Yacht ownership can be one of life’s greatest luxuries; but without careful planning, it can also be one of the most complex liabilities. With the right structuring, compliance and succession planning, however, it becomes a manageable and even generational asset.

“If you love the ocean, a yacht can be the ultimate freedom. But if it’s just about status, you’ll quickly find it’s more burden than pleasure,” concludes Heap.