What charter changes
A private yacht is used by her owner, family and friends, and nobody pays to be aboard. A yacht that is chartered supplies a service to paying guests. That brings her under her flag's commercial rules, under the VAT rules for the hire of a vessel, and under the employment standards for commercial crew. None of this is a reason not to charter, but it has to be planned, and it shapes which yacht you buy.
Charter also changes how the yacht is used. The most sought-after charter weeks fall in the same seasons you are likely to want her yourself, and a yacht in charter must be presented and crewed to a guest standard throughout the season.
It also changes the costs. A yacht in charter usually carries a larger crew, is serviced more often and is refreshed more frequently, and the management company's fees and the costs of commercial compliance come out of the charter income before anything reaches the owner.
Commercial registration and certification
To charter lawfully, a yacht must be registered for commercial use and certified under her flag's yacht code. Under the Red Ensign Group Yacht Code, used by the British and Red Ensign registries, Part A covers yachts of 24 metres and over in commercial use that carry no cargo and no more than 12 passengers, and it sets requirements for construction, stability, fire protection, safety equipment, manning and safety management. Other flags have equivalent codes, and some offer arrangements that let a private yacht charter on a limited basis, such as the Marshall Islands' category for private yachts with limited charter.
When a yacht is already in charter, her commercial certificates and their survey dates are among the first documents we ask for. Certification that is current and can be transferred saves considerable time and cost; certification that has lapsed may mean a full survey against the code.
VAT and charter
Charter is taxed as a service. Under the EU VAT Directive, the hire of a vessel for no more than 90 days is taxed where the vessel is put at the disposal of the charterer, generally the port where the charter begins, at that country's rate. Charter operators therefore register for VAT in the countries where their charters start. Commercial use also affects the yacht's own position: temporary admission, for example, covers private use only.
Charter, tax, the ownership structure, which is typically a company, and the choice of flag are closely linked. They are decided together, with a tax adviser, before the yacht is bought.
The charter programme
Charter is usually run under a charter management agreement with a management company, which markets the yacht, takes bookings, contracts with charter clients, often on the MYBA charter agreement, collects the charter fees and the advance provisioning allowance, and accounts to the owner. The agreement sets the management company's fees, the owner's own weeks, and who is responsible for the yacht's condition between charters.
Where a yacht on this site is also in our charter fleet, her listing says so and links to her charter page. That shows you her charter rates and the destinations she is offered in, and we can go through her charter history with you.
Charter clients book through charter agencies as well as directly, and a yacht's standing with them rests on her crew, her condition and how accurately she is described. A yacht that has chartered well in recent seasons has a record that can be checked; a yacht new to charter takes time to build one.
What to check before you buy
For a yacht with a charter history, ask for her charter record: the weeks booked in recent seasons, the rates achieved, the forward bookings that will transfer with her, and the costs that went with them. Ask for the commercial certificates, the crew's contracts and qualifications, and the management agreement, including how it can be ended or transferred. Forward bookings are part of the sale and should be addressed in the contract.
Treat charter income as an offset to costs, not as a return. A charter programme covers part of the running costs for many owners; whether it does for you depends on the yacht, her cruising grounds and how much you want to use her yourself. We give you our candid view, yacht by yacht.
If you plan to put a private yacht into charter after you buy her, ask for an assessment against the relevant code before you commit, so that the cost of certification is known.
Questions buyers ask
Will charter pay for the yacht?
Charter can offset part of the running costs, but it rarely covers all of them and it brings costs of its own. We look at the yacht's own charter record and budget with you rather than assuming a figure.
Can I charter a yacht registered as private?
Not as a normal commercial charter. She needs commercial registration and certification under her flag's code, although some flags have limited charter arrangements for private yachts.
Do forward charter bookings transfer with the yacht?
They can, and the contract should say how. The charter agreements, the payments already received and the responsibility for each booking must be settled at closing.
How do I know whether a yacht on this site charters?
If she is also in our charter fleet, her listing says so and links to her charter page, where her rates and destinations are shown.
This guide is general guidance as at September 2026, not legal or tax advice. Your own adviser confirms the position for your purchase.
