How are EU tariffs affecting the yachting market?
The EU’s 25% tariff on US-built yachts has created a major imbalance in the industry. Originally imposed as part of a transatlantic trade dispute, this tariff makes American yachts significantly more expensive for European buyers, limiting their market appeal.
For an owner considering a US-built yacht, this means a substantial increase in cost—often making the purchase financially unviable compared to European or other non-US alternatives.
The result? Many buyers are either looking elsewhere or structuring deals differently, sometimes keeping yachts outside the EU to avoid triggering import duties. This also puts US yacht builders at a disadvantage, reducing their ability to compete in the European market.
How does the new French tax on private aviation impact UHNWIs?
France has introduced a new tax on private aviation, aiming to curb emissions and generate revenue from high-net-worth individuals. While commercial aviation remains largely untouched, private jet operators and owners now face higher costs when flying to, from, or within France.
For UHNWIs, the direct financial impact may not be the primary concern, but the message it sends is clear—luxury transport is under increasing scrutiny.
Private aviation is often targeted in environmental debates, despite its efficiency, security, and role in business mobility. This tax adds another layer of complexity for jet owners, who must now navigate higher operational costs while balancing privacy, flexibility, and sustainability concerns.
Are these taxes changing how UHNWIs structure their ownership?
Yes—owners are adapting to maintain financial and operational efficiency.
- Yachts: Many now operate under Temporary Admission (TA) to avoid full EU import taxes while keeping flexibility in European waters.
- Jets: Some owners are relocating aircraft to tax-favorable jurisdictions or shifting to fractional ownership and charter models to minimize costs.
What does this mean for the future of ultra-luxury mobility?
Governments see yachts and private jets as symbols of wealth, making them prime targets for fiscal policies and environmental regulations.
While UHNWIs will always find solutions, the trend is clear—operating in European waters or airspace will come with increasing financial and regulatory constraints.
In response, expect to see:
- More strategic ownership structures to optimize tax positioning.
- A rise in non-EU registrations for both yachts and jets.
- An increasing emphasis on sustainability, as owners and manufacturers look to align with new environmental standards while maintaining operational flexibility.
04/2025
This article was originally published on Seaside Magazine. The information is for general purposes only and should not be relied upon as a legal or tax advice. Specific guidance should always be obtained on ownership structuring, registration and operation of a yacht.
For more information, please contact:
Janet Xanthopoulos
Director and Head of Yacht & Jet Department
j.xanthopoulos@rosemont-yacht.com