Buying A Yacht with Moncada

How To Be Prepared Before Buying A Yacht

Embarking on a luxury yacht charter is the ultimate way to explore the sea in style. Before setting sail on your yacht charter holiday, it’s crucial to consider a few key factors. We at Moncada have grown alongside the luxury yachting industry since 1963. Our experience helps clients to place their trust in us to help choose the perfect yacht, destination, and onboard experience for their yacht charter.

Define Your Objectives Before Buying a Yacht

At the start of the buying process, it is essential to clearly define how you plan to use your vessel. Your objective will shape every decision that follows, from the type of yacht you want to the cruising areas and operational setup required. Deciding this early on will help your yacht broker narrow the search efficiently.

• Do you prefer a motor yacht or a sailing yacht?

Motor yachts typically offer speed, space, and onboard amenities, while sailing yachts provide a more traditional and immersive experience at sea. Interest in catamarans is also growing in the Mediterranean, following their popularity in the Caribbean. With wide decks, excellent stability, and onboard space, they offer a versatile and comfortable way to sail.

• Will the yacht be used for private cruising, charter, or both?

If you intend to charter the yacht, it can help offset running costs, provided it has layouts designed for guest comfort, space for extra crew, and meets all commercial regulations. They are also often complemented with an extensive selection of water toys and tenders. Private yachts, meanwhile, offer the freedom to tailor spaces and onboard features entirely to the owner’s personal preferences.

• Where do you envisage cruising? The Mediterranean, the Caribbean, or worldwide?

Each cruising region has its own regulations, certifications, and technical requirements, and worldwide cruising adds even more complexity. In the Mediterranean, yachts need specific certifications for seaworthiness and the capability to perform in varied sea conditions. In the Caribbean, yachts must comply with customs and clearance procedures unique to each island. If you’re planning on cruising around the world, your yacht needs more robust onboard systems and advanced navigation for ocean-crossing.

• How many people will be using the yacht?

Guest capacity, cabin layout, and crew numbers are all influenced by how you plan to use the yacht.

An experienced yacht broker will listen carefully to your objectives and recommend practical yacht options that align with your expectations and long-term plans.

Establish a Realistic Budget

Once your objectives are clear, the next step is setting a realistic and comprehensive budget. Buying a yacht involves far more than the initial purchase price, and understanding the full financial picture is key to stress-free ownership. As a general guideline for new yachts, annual maintenance costs are often estimated using the “10% rule,” which roughly budgets 10% of the yacht’s purchase price each year for its upkeep.

Key costs include:

• Yacht purchase price

The purchase price reflects the yacht’s size, age, brand, and overall condition. Newer or recently upgraded yachts will typically have a higher price, while older vessels may offer value but require greater investment in refits and maintenance over time.

• VAT and tax considerations

These depend on several key factors, including where the yacht is bought and delivered, whether it will be used privately or for charter, and how it is registered. These decisions directly affect whether VAT is payable, deferred, or potentially reclaimable. The yacht’s flag registration also plays a key role in influencing tax structure and wider regulatory considerations.

• Berthing and marina fees

Marina costs vary depending on the yacht’s size, location, and season. Prime Mediterranean marinas, particularly during peak summer months, often command premium rates, while long-term winter berthing may offer more flexibility. Availability should also be considered, especially for larger yachts.

• Crew salaries and training

Crew costs depend on the size of the yacht, the number of crew required and the level of experience onboard. In addition to salaries, ongoing training, certifications, uniforms, and crew welfare should be factored into the annual operating budget to ensure a smooth and professional operation. 

• Crew management (whether captain or management company)

On some yachts, the captain oversees crew management directly, while larger or more complex operations may benefit from a dedicated yacht management company. Crew management costs include recruitment, payroll, rotation planning, compliance, and administrative support, helping ensure the yacht runs efficiently and professionally.

• Insurance, fuel, routine maintenance, and refit costs

Insurance premiums vary based on cruising areas, yacht value, and usage, while fuel costs depend heavily on location, cruising speed and distance. Routine maintenance is essential to protect the yacht’s value, and most owners should also plan for periodic refits or upgrades to keep interiors, systems, and technology up to date.

A professional yacht brokerage will walk you through these considerations, clarifying both fixed and variable costs so you can enjoy your yacht with full confidence in the financial commitments involved. 

Choosing the Right Yacht Broker

With your objectives defined and budget established, choosing the right yacht broker becomes one of the most important steps in the buying process. A broker’s role extends far beyond presenting listings; they act as your advisor, negotiator, and representative throughout the transaction.

When selecting a broker, look for:

• Proven experience and strong market insight, particularly in the type and size of yacht you are considering.
• Transparent communication and honest guidance, including realistic assessments of value and condition.
• A personalised approach, focused on your needs rather than simply promoting available yachts.
• Access to a trusted professional network, including surveyors, lawyers, and captains.

Working with a specialist yacht broker provides valuable knowledge of VAT structures, flag options, and regional marinas. A strong yacht brokerage relationship sets the foundation for a smooth and confident purchase.

Build a Trusted Buying Team

Once you have chosen your broker, the next step is to assemble the right professional team to support the purchase. Buying a yacht is a complex transaction, and expert input at each stage helps protect your investment.

Your buying team may include:

• A maritime lawyer to review contracts, ownership structures, and compliance requirements.
• A certified marine surveyor who can thoroughly assess the yacht’s structural, mechanical, and technical systems.
• A captain or technical expert to assess performance, usability, and operational suitability.

Your yacht broker will typically coordinate this team, ensuring surveys, inspections, and documentation are completed efficiently and aligned with the purchase timeline.

Surveys, Inspections, and Sea Trials

When a suitable yacht has been identified, surveys and sea trials are essential steps in the buying process. These procedures provide crucial insight into the yacht’s performance, systems and operational capability before finalising the sale.

This stage typically includes:

• A comprehensive structural and mechanical survey, covering the hull, machinery, and onboard systems.
• Detailed engine and equipment inspections to confirm performance and reliability.
• A sea trial gives you the opportunity to experience the yacht under real operating conditions.

Survey findings often play a key role in final negotiations. An experienced yacht brokerage will help interpret the results, advise on potential remedial works, and manage any necessary adjustments to the agreed price or contract terms.

Legal and VAT Considerations

With inspections complete, attention turns to the legal and financial framework of the purchase. Buying a yacht involves detailed documentation, and accuracy at this stage is critical.

Key elements include:

• The Memorandum of Agreement (MOA), outlining the terms of sale.
• VAT and tax compliance, particularly when purchasing or registering the yacht.
• Flag registration and ownership transfer, in accordance with international maritime regulations.

Working with a knowledgeable yacht broker and legal team ensures contracts are correctly structured and all regulatory obligations are met. This expertise significantly reduces risk and ensures a smooth transaction.

Preparing for Ownership After Purchase

Completing the purchase is just the beginning. Ensuring your yacht is set up to run smoothly from day one requires thoughtful preparation and the right support behind you.

Yacht brokers work closely with their clients to define the key operational elements of ownership, from crew recruitment to berthing, insurance, and long-term maintenance planning. Every detail needs to be considered in advance, whether for an upcoming cruising season or future refits.

At Moncada, we remain actively involved well beyond the point of sale, offering ongoing guidance, trusted contacts, and hands-on support to ensure our clients enjoy their yacht with confidence, clarity, and peace of mind.