A superyacht is not just a private leisure asset. It is a mobile workplace, a regulated commercial object, a cross-border tax presence, and often a charter business for part of the year. The company that owns the yacht requires proper governance, specialist oversight and continuous compliance. A TCSP with real yachting experience brings together tax, VAT, charter, crew management and operational governance in a way that protects the owner and keeps the yacht operating smoothly.
1. Technical ownership and governance: The foundation of safe and compliant yachting
A dedicated yacht-owning company protects the owner from personal liability and creates a clean framework for operational and financial management. However, this only works when the structure is administered professionally.
An experienced TCSP ensures the company has proper governance, documented decision making and up to date statutory records. They provide or appoint professional directors who understand the realities of superyacht operations. This protects the owner in case of incidents, investigations, disputes or claims. Poor oversight or unclear roles between captain, manager and owner can expose the owner to unnecessary risk.
Good governance also means ensuring that the yacht’s ownership and operational profile match. If a yacht is used privately but occasionally chartered, the owning company must be structured and managed accordingly. The TCSP keeps all elements aligned, from legal documentation to insurance, management agreements and VAT compliance.
2. Hidden governance risks in Yacht structures
Superyachts often operate across multiple jurisdictions. Without a skilled administrator, several hidden risks can arise.
Fragmented compliance: Safety, labour, environmental and customs obligations must be coordinated consistently. A TCSP provides a single point of accountability.
Liability exposure: Crew issues, passenger incidents or charter disputes can quickly escalate. A properly managed company isolates liability and ensures responsible oversight, with the right insurance cover.
Tax and reporting traps: Misunderstood VAT rules, incorrect importation or failing to meet EU reporting requirements can lead to penalties, and even vessel seizure. A TCSP anticipates and manages these issues long before they materialise.
Reputational risk: UHNW owners and their structures are increasingly scrutinised. Strong governance and transparent administration reduce unwanted regulatory attention.
These risks will come under particular scrutiny at the time of sale and purchase of a yacht, but should be addressed throughout the ownership and operation of the yacht. A good TCSP will be able to manage these risk for the owner and through continued dialogue will be able to advise on potential risks when new actions are envisaged.
3. Choosing the right jurisdiction for the owning company and the Yacht’s flag
Selecting the jurisdiction for the yacht-owning company is a separate decision from choosing the yacht’s flag, and the two do not need to match. Owners often establish the holding company in a stable, tax neutral jurisdiction while selecting a flag that offers the best operational, regulatory or chartering advantages. The correct combination optimises tax efficiency, governance and global mobility. A good TCSP will take into account multiple factors before proposing different options for clients.
The following important matters need to be thought about:
- The nationality of yacht owner (EU or not EU / Less impact in Asia, importation has more impact than nationality);
- The residence of the yacht's principal user(s) and their guests (more impact within the EU (ie Spain or non EU yacht under TI with EU guests on board);
- The physical characteristics of yacht (age, length and tonnage being particularly important / conformity with any commercial yacht code);
- The existing registration of yacht (if applicable);
- The availability of historical proof of ownership / title documentation for yacht;
- The usage of yacht (i.e. private or for charter);
- VAT or equivalent tax status of the yacht;
- The area of operation and primary homeport/country of use;
- Specific crew and operational considerations.
Corporate choices may include:
- Cayman Islands: Tax neutral, flexible and respected. Suitable for private and charter capable ownership vehicles.
- Malta: An EU jurisdiction offering beneficial VAT and tonnage-tax frameworks, ideal for yachts operating in the Mediterranean.
- British Virgin Islands: Highly cost effective and easy to administer, with strong privacy and widespread international recognition.
- Marshall Islands : Efficient to establish, tax neutral and confidentiality focused. Often paired with a Marshall Islands flag.
- Cyprus: An EU option with competitive corporate tax and a favourable tonnage-tax regime, often used for commercial or mixed-use structures.
On the flag state side, the Cayman Islands, Marshall Islands and Malta remain the leading choices. These registries are known for high standards, efficient administration, strong international reputation and clear frameworks for private, commercial and dual-use operation.
An experienced TCSP ensures that the chosen ownership jurisdiction and flag complement each other and remain compliant across the yacht’s operational footprint.
There are many elements to consider when choosing a flag for a yacht. The decision on where to register a yacht is dependent on many factors such as:
- Nationality, and Residency of OWNER
- Commercial or Private Operation
- Classification Society certification and Construction Approval
- Yacht age and condition
- Proposed Home Berth and Area of Navigation
- Owning Company jurisdiction
- Existence of Leasing or Financing
- Flexibility of Flag Administration with respect to Commercial Activities
- Set-up, Annual Administration and Survey Fees
- Flag Administration Reputation and Rating with Paris MOU
4. Chartering, VAT and the YET Scheme: Why expertise matters
Chartering can offset some operating costs, but it introduces substantial regulatory obligations. Chartering in the EU requires VAT registration, correct invoicing, fiscal representation and strict adherence to local rules.
A TCSP ensures the owning company is VAT compliant, that fiscal agents are appointed, that VAT is charged correctly, and that customs and port formalities are completed accurately.
For UHNW clients who want private use with occasional charter income, the Yachts Engaged in Trade (YET) scheme allows a private yacht to charter legally for limited periods each year under specific flags such as Cayman, Marshall Islands and Isle of Man. Implementing YET requires precise control of certificates, safety compliance and operational procedures. A TCSP manages these steps to ensure the yacht remains compliant in both private and charter modes.
5. Crew Payroll and multi-stakeholder coordination
Crew employment must comply with the Maritime Labour Convention and requires proper contracts, payroll, insurance and record keeping. A TCSP coordinates compliant crew employment solutions and ensures timely payroll while preventing the owner from inadvertently becoming the direct employer.
The TCSP also acts as the owner’s administrative hub, coordinating with yacht managers, captains, brokers, surveyors and customs agents so that every decision aligns with the ownership structure and regulatory requirements.
Why Rosemont Yacht Services
Rosemont brings significant experience in superyacht ownership, governance, administration and compliance. We work closely with maritime lawyers, VAT specialists, yacht managers and crew employment providers to deliver a seamless ownership experience. We establish and manage robust ownership structures, oversee VAT and charter compliance, implement the YET scheme where appropriate and coordinate all stakeholders on behalf of the owner. We can advise and implement on the estate planning and ownership issues for the owners, and can put in place trust or foundation structures to match the needs of the clients.
For a confidential discussion on structuring or reviewing your yacht ownership arrangements, contact Rosemont Yacht Services: rys@rosemont-yacht.com
11/2025