9. The Tax Rate is Even More Ridiculous
Now, here comes the high cost of owning an expensive yacht. Right after you buy it, you have to register it at local county auditor’s office or vehicle licensing agency. The registration fees include a one-time titling fee, an annual registration fee, and an applicable filling fee.
Then, you have to pay for the luxury tax. The rate may vary depending on where you own it. To paint you a picture, take a look at Monaco, one of the world’s most popular yachting sites.
Since 15 July 2013, all Charters starting in French and Monaco waters are subject to French VAT (Value Added Tax) at the full rate of 20%.
There are more than one kind of tax you need to pay. There are also sales tax, use tax, watercraft excise tax, personal property tax, and business tax (if you use your yacht for commercial activities).
