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• How to become a Yachtie

So you’re thinking about becoming a Yachtie?

You may have a friend or relative who already works in the industry, or you have watched TV programmes like Below Deck , you know working on a yacht is the right for you, but where do you start? 

With the potential to earn great money, travel, and work with loads of like-minded people, it’s not surprising this job ticks a lot of boxes for many people. 

Becoming a Yachtie and getting paid to work on luxury yachts may seem like a job and industry that only the elite can have access to, or it just seems too confusing to start. 

However, with an understanding of the requirements, certification, and having some expectations of what job role you should be looking for, starting work as a Yachtie will not seem so daunting.

What is a Yachtie?

Before we go any further, let’s make sure we are all singing off the same hymn sheet. 

A Yachtie is a broad term used to describe anyone who works on a yacht. More specifically, it has become the term for people working as yacht crew on superyachts. 

A superyacht is a very large boat that is extremely luxurious and often owned by multi millionaires and billionaires.

These Yachties who work on superyachts hold a number of different positions. Most Yachties will start their superyacht career working as a Deckhand or Stewardess. With more experience and responsibilities, your role will change as you progress up the career ladder. 

It’s worth noting there are other types of yachting and Yachties. The other kind of ‘Yachtie’ could describe those who hold their Yachtmaster qualification and have jobs like skipper charter boats. 

Job roles for new Yachties

Yachties new to the industry (also known as ‘Green’ Yachties) will traditionally apply for entry levels roles, which are Yacht Deckhands or Yacht Stewardesses. 

These are both very different jobs, so you need to be sure which one you want to do and start training for that career path.

Yacht Stewardess (Stew)

A Stewardess, or Steward , looks after the interior of the yacht. This means anything that happens inside the boat, you will be responsible for it. 

Think of any job in the hospitality industry and then combine it into one role on a yacht, that is what you will be doing.

From making beds, doing the laundry, cleaning, serving food, and hosting dinner, you will do it all to a 5-star standard. Anything less than perfect, and your guests won’t be satisfied.

It’s the small things that make the difference between high standards and exceptional standards. You must have a great eye for detail and be able to make sure no stone is left unturned. Everything on board the ship must be 100% perfect at all times.

You will be reporting to Chief Stew, who will be your manager and give you your task list. After a good few seasons as a green Stewardess, you will have enough experience and confidence to apply for Chief Stewardess roles.

Yacht Deckhand

In contrast to the Stewardess role, Deckhands look after the exterior of the boat. 

Predominantly a male role, Deckhands will do everything from general maintenance to cleaning the teak deck, looking after the toys (Jet Skis, etc.), and even driving the tenders.

Deckhands should know how a yacht operates, the basic terminology used onboard, how to tie knots, and loads and loads of enthusiasm. 

Deckhands may also dip in and out of helping the Stewardesses, and it isn’t uncommon for Deckhands to give a hand during busy evening meal preparation and service.

5 steps to Becoming a Yachtie

With an understanding of the job roles available, you can now decide which one best suits you. With the right attitude, qualifications, and knowing where to look for work, becoming a Yachtie is achievable for anyone who wants it. 

• Have the right attitude
• Pass an ENG1 medical
• Complete STCW Basic Safety Training
• Gain experience
• Go to a superyacht marina

1. Have the right attitude

Along with gaining the correct qualifications to prove your competence, to become a Yachtie, you must have certain characteristics to thrive in this industry.

Yachties have to be well presented, articulate, know how to take orders, and be able to work hard, all with a smile and enthusiasm. You have to be able to work incredibly long hours, sometimes under stressful conditions, without losing your patience.

Having a job on a superyacht may sound glamorous, but if it’s your 10th day working in a row and you’ve got your head stuck down a toilet trying to clean it, you may want to think again. To become a Yachtie, you have to be happy with spending a lot of time away from home without seeing your friends and family. This may all seem obvious, but this situation does not suit everyone, and without careful consideration of the negatives, you will leave this industry quicker than when you arrived.

2. Pass ENG1 Medical

The first actionable step you need to take to become a Yachtie is gaining an ENG1 medical certificate. The ENG1 medical is an examination by an approved MCA (Maritime and Coastguard Agency) Doctor to make sure you are fit and able to work at sea.

Every single person working at sea must have an ENG1 medical certificate , without this, you are not able to start working on superyachts. The examination will take around 45 minutes, during which the doctor will go through a checklist to make sure you have no underlying health conditions that may impact the safety of you or anyone else on board the ship.

The most common reason new yachties fail the ENG1 is colour blindness. Surprisingly many people can go through their whole life without knowing they are colour blind. However, on board a ship, this can have huge implications. If you cannot identify signals and lights correctly, it will be impossible for you to help navigate the ship in an emergency. Unfortunately, this means you cannot start work as a Yachtie.

3. Complete STCW Basic Safety Training

Another requirement for working at sea is completing STCW Basic Safety Training . Similar to the ENG1 you can only get a job on a yacht if you have the STCW certificate. 

STCW stands for ‘Standards of Training, Certification and Watchkeeping’. It is to make sure that all Seafarers have an understanding of what to do in an emergency and are aware of the procedures required. 

STCW Courses are action-packed and quite a bit of fun. From fire fighting to sea survival, you will get stuck in learning, and learn loads of new skills.

4. Gain experience 

If you are lucky enough to have a job offer on a superyacht, then having your ENG1 and STCW certificates will be enough.

Don’t worry if you haven’t already got a job offer, it’s quite normal to go through all these steps and not have a job lined up yet. If this is the case, gaining more experience and qualifications is a good idea to give you a competitive advantage over anyone else applying for the same job role. 

This is achieved through signing up to a Deckhand or Stewardess Course. On these courses, you will get your standard STCW certificate and a list of extra qualifications demonstrating your competence, ability, and commitment to the industry. 

Deckhands will learn how to drive a small yacht, engine maintenance, general yacht repair, and how to clean teak properly. Stewardesses will understand wine and how to serve it, the art of flower arranging, and how to drive a powerboat. 

5. Go to a superyacht marina

After you have completed your superyacht training, now is the time to head out to France and look for work. Along with signing up to yacht crew recruitment agencies, going to one of the main superyacht marinas and handing out your CV to Captains is a great way to find work. This is known as dockwalking.

If you complete your Superyacht Course with us, you will have the option of signing up to our recruitment day in Antibes, France. We head out to France as a group, talk you through the process and offer you our industry contacts.

This is a great way to start your journey, and all our students find work in no time.

How much do Yachties make?

So you’ve heard you can make a good amount of money working on superyachts? Along with the travel, the great salary is why many people decide to become a Yachtie.

Like a job within any industry, salary varies. A Superyacht will agree on a crew salary budget with the owner of the yacht.

If you are just starting out, you can expect a salary of around €2,200 – €3,200 per month. However, the industry standard is €2,500 per month. Once you gain more experience and qualifications, your salary will increase. 

When you look at the salary at face value, it looks great but not incredible, however when you are at sea, you have zero outgoings. Working on a yacht means you don’t have to pay rent, bills, or buy food which will save you heaps of money compared with working at home.

If you want to see the salaries of all yacht crew, check out our Salary Guide.

Do Yachties pay taxes?

Another reason why the salary is so appealing is that in most cases Yachties don’t have to pay tax. 

This is a government scheme called the Seafarers Earning Deduction , and providing you are eligible, Yachties can keep 100% of their earnings.

To be able to apply for Seafarers Earning Deduction, you must be working on a ship outside of UK waters for a period of 365 days. This doesn’t mean you have to spend a whole year at once away from home, rather you can only apply once all the days you work on a yacht adds up to 365.

Being able to understand this tax scheme will be hugely beneficial before you start working on a Superyacht. 

Download our free Guide

Want to know more about working on a Superyacht, please download our free guide .

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Is Living on a Yacht a Tax Haven? Legal and practical implications

People often think that living on a yacht is a luxurious and exciting way to live because it lets people travel the world while enjoying the comfort and freedom of a floating home. However, for some yacht owners, it’s not just about the lifestyle—it’s also about the potential tax benefits. The statement suggests that living on a yacht without docking for a long time allows one to avoid all taxes. This idea has been circulating among yacht owners and tax enthusiasts, raising questions about its legality and practicality. In this article, we’ll talk about whether or not it’s possible to live on a yacht and avoid all taxes, as well as the pros and cons of this way of life and some other options for tax residency.

• Is it possible to avoid all taxes while living on a yacht?

Living on a yacht and avoiding taxes may sound like a dream come true, but is it actually possible? The answer is not straightforward. Even though it is technically possible to avoid paying taxes by living on a yacht, yacht owners need to be aware of the laws and possible consequences.

Taxes are usually based on where someone lives or holds citizenship. Living on a yacht without being a tax resident might seem like a way to avoid taxes, but it is not simple. Most countries have regulations determining tax residency, which involves more than just physical location. Factors like income, assets, and connections to a country can affect your tax status.

Attempting to avoid taxes by living on a yacht and avoiding tax residency could be considered tax evasion or fraud. If caught, you risk heavy fines, legal penalties, and even criminal charges

There are legal issues to think about, but there are also practical things to think about. Living on a yacht requires significant funds, making it difficult for most people to sustain without earning money. Logistics issues include obtaining visas, medical care and managing bad weather while living on a yacht. Avoiding taxes by living on a yacht is possible, but it involves complex legal and practical challenges.

• Practical considerations

Although avoiding taxes by living on a yacht seems appealing, yacht owners must consider many practical and financial challenges. Generating income is difficult; some may have enough savings, but others need ways to earn money. Most jobs require a fixed location, complicating work for those living a nomadic yacht lifestyle. Logistical issues include obtaining visas and permits to enter different countries, which takes time and money. Accessing medical care on the water can be challenging, so planning ahead is crucial. Weather is another concern, as yacht living exposes you to storms, rough seas, and harsh conditions. Additionally, living on a yacht is not cheap; costs like fuel, maintenance, and repairs add up quickly. In short, while living on a yacht to avoid taxes sounds attractive, financial, logistical, and weather-related issues need careful consideration.

• Tax residency in Portugal or Bulgaria

People who own yachts and want to set up tax residency often choose Portugal or Bulgaria. Both countries offer a favorable tax regime for foreign residents, as well as a high quality of life and an attractive climate.

In Portugal, foreign residents can benefit from the Non-Habitual Resident (NHR) regime, which allows them to pay a flat tax rate of 20% on certain types of income, such as pension and self-employment income, for a period of 10 years. Also, Portugal has a good tax system for yacht owners. They don’t have to pay VAT and the taxes on yacht-related costs are lower. Portugal is also near the coast and close to other European countries, which makes it an easy place for yacht owners to dock and travel from.

In the same way, Bulgaria gives investors and business owners tax breaks and a flat tax rate of 10% on income earned by foreign residents. Also, Bulgaria has a good tax system for yacht owners. They don’t have to pay VAT, and the taxes on yacht-related costs are lower. Bulgaria is on the Black Sea and close to popular places like Greece and Turkey, which makes it an interesting place for yacht owners to visit.

Aside from the tax benefits, both Portugal and Bulgaria offer a high quality of life with access to top-notch healthcare, education, and cultural amenities. Also, the cost of living in these countries is low compared to other European destinations, which makes them a good choice for yacht owners who want to save money.

In conclusion, yacht owners who want to set up tax residency often choose Portugal or Bulgaria. These countries offer a favorable tax regime for foreign residents, as well as a high quality of life and an attractive climate. Both countries also have tax systems that are good for yacht owners, which makes them good places to visit if you want to sail around Europe.

• American tax residency

Unlike citizens of other countries, Americans cannot escape taxes based on their nationality. The United States taxes its citizens on their worldwide income, regardless of where they live or earn their income. This means that even if an American citizen lives on a yacht and is not docked anywhere for a long time, they are still required to pay US taxes on their income.

Also, the US has strict rules about how Americans who have assets or bank accounts outside the country must report them. If you don’t meet these requirements for reporting, you could face large fines and other legal penalties.

Living on a yacht as an American citizen can also have other tax implications.

For example, the US tax code specifies rules for “floating homes,” defined as “living units not permanently attached to any foundation and not used for transportation on water.” The yacht’s classification as a floating home for tax purposes depends on its specifics and use. This classification can change how owners handle taxes related to depreciation and mortgage interest.

Additionally, Americans living on a yacht may need to pay state and local taxes, based on the yacht’s registration and where it stays for extended periods.

In summary, American citizens cannot avoid US taxes due to their nationality, even if they live on a yacht and remain undocked for long periods.

The US has strict reporting requirements for Americans who hold assets or bank accounts outside of the country, and living on a yacht as an American citizen can have other tax implications related to the tax treatment of expenses and state and local taxes.

• Living on a yacht in conclusion

Living on a yacht to avoid taxes may seem appealing, but it involves numerous legal and practical considerations for owners. Avoiding taxes this way is technically possible, but it presents complex legal challenges that yacht owners must handle carefully. Faillure to comply with tax rules can result in heavy fines, legal penalties or even criminal charges. Yacht owners seeking favorable tax residency often choose Portugal or Bulgaria due to their favorable tax systems for foreign residents. Professional advice is crucial to avoid legal issues and ensure compliance with applicable tax laws and regulations. As tax experts, we invite you to contact us for personalized tax planning and assistance in setting up international tax residency.

Whether you own a yacht or want to change tax residency, our team helps navigate international taxation and legal compliance. Ultimately, living on a yacht without paying taxes sounds appealing, but yacht owners must carefully consider legal and practical implications. By seeking professional advice and following laws, they can enjoy tax residency benefits while minimizing legal and financial risks.

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Iven De Hoon is trained as a lawyer (Antwerp, Belgium), and is also master in tax and accounting at the acclaimed Vlerick Institute (Ghent, Belgium). He has published many articles and books on different tax topics and has more than 25 years’ experience. He is also a winner of the Willoughby Memorial Prize (St Jezus College Oxford, 2009).

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What are the tax implications for superyacht owners?

Tax and customs authorities throughout Europe, and further afield, have universally declared war on clever tax avoidance structures. Most recently, the G20 in Russia have set themselves the goal of neutralising the ability of tax payers to avoid paying tax where it is due. Arbitraging one set of national tax rules against another set will be stopped.

Layered upon this is a political imperative which has created an atmosphere that taints tax avoidance with moral repugnancy. The G8 summit in June cast aggressive tax planning as immoral. To avoid taxes which, if a person were transparent in their business affairs they would, as a matter of course, pay, but they do not because of an opaque organisation of their affairs, is not a good thing.

If structures are layered with complex inter company relationships, no matter who signs it off as ‘technically legal’, be sure that if there is no objective commercial rationale for the structure, it will be open to question. The tax will be demand and there will be no option of being differently tax efficient.

Buoyed by support from the European Court of Justice, the EU tax authorities see themselves as Julius Caesar and they have crossed the Rubicon, which distinguished evasion and avoidance and are set to defeat those, like Pompey, who represent the old ways. There are also renewed vigorous policy bombardments against offshore centres. Not yet, but given that now to charter in Europe you must register for VAT in centre from whenst you commence charters and must have a fiscal representative in that jurisdiction, it will not take long before the obligation for VAT registration will extend to registration for corporation tax and thus bringing all superyacht business onshore.

Whether this is a good or bad thing is not for me to say, but suffice it to say it would require a global shift in policy to reverse this trend. Let us not forget, this is not a concerted attack on superyachts. We are a fleet of approximately 5,000 vessels caught in the cross fire of the publicity brought about by Starbucks and Amazon’s tax affairs.

this is not a concerted attack on superyachts. We are a fleet of approximately 5,000 vessels caught in the cross fire of the publicity brought about by Starbucks and Amazon’s tax affairs.

The most recent superyacht skirmish saw the defeat of the French Commercial Exemption at the European Court of Justice. France has withdrawn its blatant flouting of the Sixth Directive and she has fallen into line, almost, with the rest of the EU, by declaring that VAT will be charged on charters commencing or ending in France.

There are commentators and local advocates of superyacht industry in France who claim that the effective rate of VAT will not be 19.6 per cent but less than 10 per cent on the grounds that only that portion that is inside French territorial waters will be subject to VAT.

If less than 19.6 per cent is collected by an owner for the French state, how will another EU customs authority respond? Is this a distortion of the EU superyacht charter market? Will France be forced to collect the full 19.6 per cent unless you can conclusively prove the charter was outside France? My guess is that eventually the assumption will be made that 19.6 per cent must be collected, thus requiring the superyacht owner to make an almost impossible case to reduce the VAT.

We are not there yet, but as VAT falls upon the owner to collect, will owners risk not collecting the full 19.6 per cent in the hope that the French authorities do not attempt to claw it back later? A very difficult commercial judgement call and an impossible legal conundrum.

John Leonida, a former Foreign and Commonwealth Office economist, heads up Clyde & Co’s superyacht practice. A leading commentator on superyachting matters, he and his team advise several of the leading yacht builders, owners and designers. Leonidas’s team has been involved in many of the recent leading cases involving the superyacht world. In a new monthly column for Boatinternational.com, Leonida will lend his expert insight on legal issues affecting the superyacht owners.

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Yachts and Taxes: Everything You Need to Know

7 minute read

Those who are seeking freedom, pleasure, or adventure often dream of owning a boat. Unfortunately, the cost of boat ownership is financially draining due to expenses such as storage, registration, insurance, fuel, and maintenance. However, there is some good news for those who want to set sail.

Can You Write Off a Boat on Your Taxes?

The good news is that there are some tax write-offs available for boats used for business and even pleasure that can offset some of the expenses. And yes, this includes yachts and tax deductions.

What Taxes can You Expect When You Buy a Yacht?

The bad news is that yachts are subject to taxes. These taxes go towards waterway upkeep, on-water services, and boat facilities. Most of the taxes will be state-based, so you should find a planner who is versed in state and local planning as well. There are 4 common taxes that yacht owners have to pay.

Sales tax is paid at the time of purchase. This tax is based either on a percentage applied to a portion of the purchase price or a flat rate with a cap. Yacht owners may also be subject to a local sales tax. The sales and local tax are dependent upon the state, county, and municipality that you made the purchase.

If you don’t pay sales tax on your yacht at the time of purchase, you probably will have to pay a use tax in the state where you will be storing your boat. Use tax is applied to only a certain portion of the yacht’s purchase price. If the sales tax rate is higher in the state you purchased the yacht than the use tax in the state where the boat is being stored and used, then you will probably want to opt to pay the use tax and not the sales tax.

Personal Property Taxes

Many states levy a tax on personal property such as cars, and that could be extended to your boat! Depending on the state the yacht is based out of, you may have to pay personal property taxes on a yearly basis.

Property Taxes

There’s even a property tax on the boat slip. If you own a boat slip, the slip is assessed by the local municipality. If you are leasing a boat slip, property taxes are usually included in the monthly lease.

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What is a Yacht Tax Write-Off?

While there are taxes every yacht owner has to pay, the flipside is that there are some tax deductions that can save yacht owners money on their taxes. The deductions depend on how the yacht is being used.

Business Use

There are some substantial tax deductions if you are using your yacht for a legitimate business purpose such as chartering or for sightseeing tours. To qualify for business use, the yacht must be used for business purposes at least 50% of the time.

Purchase Price Expense Deduction

Under Section 179 of the Internal Revenue Code, the Purchase Price Expense Deduction allows an entity, either a corporation, partnership, or LLC, a one-time deduction of 100% of the purchase price of the yacht, up to a maximum deduction of $500,000, during the year of purchase. However, the benefit is reduced if the purchase price is more than $2 million. The yacht can be new or pre-owned. Equipment upgrades can be written off as well if they are within the same year the yacht was purchased.

Business Expense Deductions

If you are earning income off of your yacht at least 50% of the time, then you can deduct business expenses from your taxes. Some of the business expenses that can be deducted include equipment, slip costs, fuel, maintenance, crew salaries, interest, property tax, insurance, and depreciation. Thanks to the Tax Cuts and Jobs Act, entertainment is no longer deductible.

Home Office Deduction

This deduction is frequently overlooked. If your boat is used as a part-time office, you may also qualify for the home office deduction. The activities in this yacht office must be business-related and occupants must have business discussions while aboard the yacht.

Business Commuting

If you use your boat for commuting to and from work, you also may qualify for tax deductions. Again, you must use the yacht at least 50% of the time for business transportation. The deductions for business commuting include storage, crew salaries, depreciation, repairs, fuel, and insurance.

Depreciation

As mentioned earlier, depreciation can be a tax deduction if the yacht is used in business. A bonus depreciation deduction can be taken in the year the yacht was purchased. Depreciation, in this case, is 100% of the purchase price., but this is only available until the end of 2022. Beginning in 2023, the amount of bonus depreciation will be 80% of the amount over 0,000 after section 179 . The adjusted cost basis of the yacht can be depreciated over the period of 10 years. To determine the cost basis, you deduct the Section 179 expense deduction and the bonus depreciation deduction from the purchase price. Cost basis is the balance.

What are the Tax Advantages of Living on a Boat or Yacht?

Some individuals actually live on their yachts. There are even tax advantages to using your yacht as a primary residence or as a second home.

Is Boat Loan Interest Tax Deductible?

Deducting the interest you pay on your boat loan, similar to mortgage interest, is the biggest tax deduction for recreational boating. To qualify for this deduction, the yacht must have a toilet, cooking facilities, and a sleeping area. The second home mortgage interest deduction has a cap of $750,000.

If you rent your boat out, you need to stay on the boat for either at least 14 nights during the tax year or 10% of the number of days the boat was rented to take advantage of the tax deduction as a second home.

There’s another tax advantage to living on a yacht. If your yacht is listed as your primary residence and you happen to sell it at a profit, you could qualify for a capital gains exclusion which would result in a huge savings on your taxes.

Is There any Deduction for Donating a Yacht to Charity?

If you are in a position to donate your yacht to charity, then the IRS offers a deduction for this generous act. The market value of the yacht on the day it is donated can be deducted from your taxes.

Getting the Most Out of Yacht Tax Deductions

If you are a yacht owner and are looking to save on taxes, deductions can be a powerful strategy. Good tax planners, however, use a variety of strategies each year to save money. Tools such as Corvee tax planning software help taxpayers quickly find the strategies available to them. Request a demo today.

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