11. Have you ever heard of luxury tax?
Now let’s get down to business. As mentioned earlier, buying a private jet will cost you more than what you spend on purchase. There are other expenses you need to take care of. And the one that would probably sucks the most is paying luxury tax.
If you are a United States citizen, congratulation. Your country has levied you from this ridiculously high tax for owning expensive things. But for other countries, this is still a matter to face. Luxury tax rate varies from one country to another. Usually, they charge you 5% to 30% of the luxury item’s value.
To paint you a picture, if you buy a used 2014 Gulfstream G280 jet for around $15 million, you have to pay extra $1.5 million for the 10% luxury tax. Imagine what you can do with $1.5 million you will be spending on tax alone.
Plus, some countries, like Italy, also apply luxury tax for private jet passengers. For example, if you are flying from New York to Rome on a private jet, you will be charged extra €200 for this tax. And the same amount applies on your return flight. You won’t have to pay for this if you choose regular flight instead.
