Cruising the world’s waters in a private floating palace has become quite the status symbol among the mega wealthy – nothing screams “success” quite like a giant, lavish boat, though purchasing one certainly isn’t as simple as picking your favourite from a brochure. To join the club of super yacht owners is not to make a smart financial investment; it's to make an investment in joy, happiness and status. The super yachts of today are stacked to the brim with extravagant amenities and annual running costs can easily and most likely will reach seven-figure sums.
The big picture
The overall cost of owning and running a super yacht comprises of costs and expenses from dozens of areas; the cost of the yacht itself is merely a small piece of the puzzle. From staff salaries and insurance to having somewhere to park the thing, there are myriad costs and financial decisions to consider with super yacht ownership. At yacht charter, we cover some of the main financial considerations of super yacht ownership.
Registering the yacht
Choosing the yacht’s flag state is one of the most important decisions a new yacht owner has to make. The flag state bears the authority and responsibility to enforce regulations over vessels registered there, which in turn has large implications in areas such as tax obligations, liability in international waters, privacy, and whether or not a yacht can be operated as a commercial enterprise.
Day-to-day running costs
At the most basic end of the spectrum, normal running costs of a super yacht include fuel, maintenance, crew salaries and mooring fees. Of course, no good yacht is a worthy place to spend time without some proper water toys like Jet Skis and speedboats, adding increased running costs and safety considerations. Generally, running costs of a yacht are roughly estimated at 10% of the purchase value, but this amount can quite easily become more than that. The operating cost of a vessel can be estimated with the help of an operating costs calculator, such as this one from LuxYachts.