SOME freedoms come only with a yacht or a powerboat. Freedom to sail the most beautiful and tranquil seas… freedom to berth in the richest, most pleasant harbours in the world… freedom to choose. Yet an invisible barrier has been put around some of the best seas and most pleasant harbours. It is a barrier of taxes that could take up to one fifth of the value of your vessel.
Fortunately, it is not an impenetrable barrier - if you know what you are doing. The barrier is called Value Added Tax (VAT) and covers the European Union (EU), which of course covers some of sailing's favourite playgrounds: Monte Carlo, Palma de Mallorca and Italy's Amalfi coast.
Beautiful, glamorous, rich and exciting - but are they worth 20% of the value of your yacht? VAT is normally payable at rates of between 16% and 20% on the purchase price of your yacht, depending on where you buy it. And it has to be paid immediately on registration. However a consortium of specialist companies has devised a scheme called The Golden Anchor. This scheme “takes the sting out of the tail” of yacht purchase, providing robust tax mitigation for luxury yachts.