Those seeking to purchase a yacht or superyacht may often need
to borrow the funds in order to buy it. But there are a number of
other financially sound reasons to pursue this route, even if you
have already amassed enough wealth to buy the asset in the first
place. These include both practical and legal arguments ranging
from running-cost benefits to tax advantages. In this article,
Jonathan Hadley-Piggin provides a definitive guide to yacht
finance.
REGISTRATION AND FLAG PREFERENCE
A flag state is the country under whose laws a yacht is
registered. This might be the country in which the owner lives or a
ship registry in a country more synonymous with the complexities
that surround charters and yacht ownership. Registration also
grants the privilege and protection of flying the flag of that
particular country. Every maritime nation, and even some
land-locked countries such as Switzerland, has a system of ship
registration that permits the registration of mortgages
