How To Run a Yacht Charter Business From Offshore


International Yacht Chartering, given its international clientele, is a business that lends itself well to “Offshore” Corporate Structuring. Here’s how it will typically work:


  1. The yachts will be owned by (or the leases held in the name of) the/a tax free Offshore Company
  2. Your international clients will enter into an agreement with the said Offshore Company (which is commonly an “IBC” ie International Business Company)
  3. The situs of the agreement (ie the place at which the contract was formed and or services provided) will be deemed in the agreement to be Offshore
  4. The nil tax IBC will have a bank account Offshore ideally in a nil tax International Offshore Financial Centre
  5. You will want to set up a merchant account facility for your Company so clients can pay you by card (and also ideally by paypal) as well as by bank wire if/as they may prefer
  6. Funds are ultimately directed to the Offshore Company’s tax free bank account and receipted free of tax in the first instance
  7. Your or your local company will be engaged by the Offshore Company to perform certain functions (eg client liaison, yacht sourcing, fleet maintenance, logistics management etc etc etc)
  8. The operating expenses can/will be paid from the Offshore account
  9. To cover your local living costs you could draw down regular instalments as wages (or consulting fees) and/or you could access funds using the Offshore Company’s VISA/Mastercard and/or the Offshore Company could loan you money
  10. If you want to make substantial purchases onshore eg to buy a car or a piece of realty or shares/investments your tax free IBC could buy these or (eg if you want to make these purchases as discreetly and as privately as possible) your existing IBC could form a subsidiary IBC to buy these
  11. The remainder of your Yacht Charter Business profits could be held and/or invested offshore potentially tax free.


Local laws can have an impact. Hence you should seek local legal/tax advice before committing to set up an Offshore Corporate structure such as that described above.



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