Ask a Yacht Expert

The industry rule of thumb is 10-15% of the yacht’s purchase price per year in operating costs, but the actual number depends on how you use the yacht, where you keep it, how much you paid for the yacht, and the size of your crew. For an 80-foot motor yacht valued at $3 million, expect annual costs of $250,000–$400,000 covering professional crew (captain plus one or two additional, at $80,000–$150,000+ in combined salaries), fuel, slip or marina fees, insurance, and routine maintenance. For a 120-foot+ vessel, an annual superyacht budget typically exceeds $1 million — you are now supporting a full-time crew of 6–12, mandatory classification society surveys, specialized shipyard maintenance, and significantly higher fuel and docking expenses. The cost drivers that catch new owners off guard are crew (salaries, benefits, travel, and training), fuel on long-range cruising, and major maintenance events like engine overhauls, running gear service, and electronics upgrades that typically arise in years five through seven. The good news is that these costs are predictable with the right management team in place. A professional yacht management company can help you build an annual operating budget, avoid deferred maintenance surprises, and keep your yacht running efficiently.

Want a personalized ownership budget before you commit? Our yacht experts can break down the real numbers for any vessel you’re considering — contact us for a consultation.

A marine survey is your single most important protection as a buyer. It will reveal hull condition below the waterline (blistering, osmosis, stress cracks), engine and mechanical system health, electrical system integrity, structural issues in the deck and stringers, and the true condition of through-hulls and seacocks. Listings will never mention deferred maintenance, hidden moisture damage, or aging systems. Red flags that should make you walk away or demand a major price reduction: significant hull delamination or core rot, active water intrusion in the deck or hull, engines with excessive hours relative to their age, outdated or non-functional safety equipment, and any signs of prior major damage that was repaired poorly. Items that are normal negotiation points rather than deal-breakers include cosmetic wear, minor blister repair, outdated electronics, and rigging that is approaching replacement age. Always hire a surveyor who is independent — never one recommended by the seller or the seller’s broker.

Not sure how to manage a survey? Talk to one of our yacht experts — we can help you separate deal-breakers from negotiation leverage.

This is one of the most complex areas in yachting, and getting it wrong is expensive. In the U.S., you will pay state sales or use tax on purchase (varies by state, typically 6–10%), and there is no federal VAT. Many U.S. buyers register their yacht in states like Delaware or Florida for favorable tax treatment, and use an LLC for liability protection and potential sales tax savings on future resale. In Europe, VAT applies at the rate of the EU member state where the charter begins or the yacht is delivered — typically 19–24%. A yacht with “VAT paid” status is significantly more valuable in the European resale market because subsequent buyers avoid paying VAT again. Flag state registration (where your yacht officially flies its flag) affects safety regulations, crew certification requirements, and commercial charter licensing. Popular flag states include the Marshall Islands, Cayman Islands, and Malta — each with different cost structures and regulatory obligations. The bottom line: consult a maritime attorney and tax advisor before purchasing. Structuring ownership correctly from the start can save tens or hundreds of thousands of dollars. Restructuring after the fact is far more expensive and complicated.

Navigating flag states, VAT, and ownership structures is where costly mistakes happen. Let a yacht expert point you in the right direction — get in touch before you finalize your purchase.

Both paths lead to an incredible ownership experience — it comes down to what matters most to you. A new build gives you complete creative control. You choose the layout, systems, finishes, and equipment, resulting in a yacht that is uniquely yours from day one. New builds also come with full manufacturer warranties, the latest technology, and the satisfaction of being the original owner. Most new builds take 18 months to 3+ years, depending on size and shipyard, so this is the ideal path if you have a clear vision and enjoy being part of the design and construction journey.

A pre-owned yacht puts you on the water right away. You can tour the vessel, sea trial it, and be cruising within weeks of closing. Pre-owned yachts also offer outstanding value — many are meticulously maintained by professional crews and come equipped with upgrades the original owner invested in. A thorough marine survey gives you full confidence in the vessel’s condition, and your broker will guide you through every step of the evaluation. Many of our clients start with a pre-owned yacht to begin enjoying ownership immediately, and later commission a new build once they know exactly what they want from years of personal experience on the water.

Not sure which ownership path fits your lifestyle and budget? If you’d like to build a yacht, our yacht experts help buyers make this decision every day — we offer complimentary new build yacht management with every new-build sale.