Boat Leasing Finance - Yacht Leasing
Boat leasing is a great way to
finance your next boat, and yet in the UK
and elsewhere this form of finance is little used. Everyone hates paying
VAT, and with these straightforward means of marine finance, you can make
significant VAT savings, on both new and used boats.
The schemes we offer are recognised leasing finance schemes for boats and yachts of all sizes, established by the French, Italian and Maltese governments. They have nothing whatsoever to do with cross border leasing, which we do not recommend to anyone.
The Italian and French leasing finance schemes have been established for many years in Europe, and provide a legitimate and straightforward way to reduce the VAT on your boat purchase.
Boat Leasing Finance - How Yacht Leasing Works
If you are using your boat in EU waters, ( yes that includes the UK as we are part of the EU!) then this simple form of yacht leasing finance can save you VAT. The boat leasing finance process is very simple. You choose your yacht, boat, or super yacht in the usual way, and negotiate a final price with the broker, dealer or manufacturer. This includes all the extras that you would like as part of the overall specification, and the deposit is then paid. The bank then arranges to buy the vessel and the balance is financed by them, with the boat then being leased to you for the agreed period at an agreed rate per month ( or quarter ). Reduced rates of VAT are paid on these payments according to the type of boat, its size, and the type of scheme ( Italian or French ). At the end of the leasing contract you have the option to buy the vessel, or simply return her to the bank. The residual values vary from lender to lender and currently range between 0.1% and 5%.
Boat Leasing Finance - Yacht Chartering
If you are a professional chartering company, then yacht leasing finance makes even more sense, as we are able to offer VAT free leasing which can save considerably on costs. However it must be stressed that this is for legitimate chartering companies only, which is normally judged to be those with full time crews.
For the private individual, part time chartering is permitted within the terms of the lease.
Boat Leasing Finance - Italian or French Lease
The two main leasing schemes we offer are the most popular, namely the French and the Italian. We are looking at the Maltese lease option, but have yet to find a suitable provider with the flexibility we like to offer our clients. The Italian and French schemes offer slightly different benefits, depending on the size and class of vessel, with the former being based on type and size of vessel, whilst the latter is based on Class. In principle the larger the boat, then the greater the savings in VAT, and for yachts over 24 metres, it is possible to reduce the VAT to 6%.
Please note that the minimum deposit for leasing in excess of 5 years is 30%.
There is no upper limit on the size of vessel we are able to finance using a lease, so we are able to arrange boat leasing finance for both mega and super yachts. Many of the banks we use also offer private banking and investment services, and are therefore very comfortable with incorporating leasing into effective and confidential arrangements.
Boat Leasing Finance - Key Points
- Minimum value of boat (ex VAT ) : 500,000 euros
- No maximum value
- Minimum deposit for the lease is 20% ( French or Italian)
- Maximum deposit for the French lease is 50%
- Maximum deposit for the Italian lease is 50%
- Leasing contracts from 3 to 8 years
- Residual values for the French lease from 0.01% to 5%
- Residual values for the Italian lease from 0.01% to 5%
- Lease can be held in either private or company ownership
- Available for both new and used boats
- Registration in most EU countries and flags
- UK flag is available under the scheme!!!
- Chartering is permitted under the terms of the lease
- VAT free leasing available for chartering companies
- Complete client confidentiality
Boat Leasing Finance - Quote Examples
| Italian 5 Year Leasing Quote | Cost Ex VAT | Vat | Total Cost |
| Pershing 64 | 2,000,000.00 | 400,000.00 | 2,400,000.00 |
| Deposit (40%) | 800,000.00 | 8% | 864,000.00 |
| 19 Qty Instalments of 76,351.19 | 1,343,215.36 | 8% | 1,450,672.59 |
| Residual Value 5% | 100,000.00 | 20% | 120,000.00 |
| TOTAL COST 5 YEAR LEASE | 2,434,672.59 |
| French 3 Year Leasing Quote | Cost Ex VAT | Vat | Total Cost |
| M/Y 44 | 700,000.00 | 137,200.00 | 837,200.00 |
| Deposit (20%) | 140,000.00 | 9.8% | 153,720.00 |
| 11 Qty Instalments of 61,398.04 | 615,098.81 | 9.8% | 675,378.44 |
| Residual Value 1% | 7,000.00 | 19.6% | 1,372.00 |
| TOTAL COST 3 YEAR LEASE | 830,470.44 |
Request a leasing quote by completing the following simple details and we will start working on it for you straight away - just hit the submit button when you are finished.
Please just complete the above form, and we will get back to you as soon as possible with a finance leasing quote for your boat.