How to Buy a Superyacht

Buying a superyacht should be a pleasure, and our aim is to keep it that way while protecting your legal rights and your investment. This guide explains how to buy a superyacht from a legal point of view, and how Jaffa & Co supports buyers from the first offer to the moment the yacht is theirs. We advise on yachts from 24 metres to more than 150 metres, for owners all over the world.

1. Advising on, and negotiating, the contract

When buying a brokerage yacht, a standard form contract is usually used: the MYBA Memorandum of Agreement in the Mediterranean, or the IYBA Purchase and Sale Agreement in the Americas. The form is tailored by an addendum to reflect your requirements, and to ensure the delivery and technical documents protect your investment.

2. Choosing the ownership and flagging structure

The structure must reflect your circumstances and how you intend to enjoy the yacht: where she will cruise, whether she will operate privately or commercially, and where you are domiciled. We devise a tax-efficient ownership structure, with tax advisers where appropriate, then implement it by incorporating the companies and liaising with the flag state. In short, we take care of the entire process for you.

3. Reviewing the technical and title documents

The yacht’s technical documentation is needed to structure her as you intend, and you will need it again when you sell. Her ownership history must also be documented. Unlike real estate, there is typically no electronic register that proves ownership, and each registry has its own requirements, so this is a careful paperwork exercise.

4. Legal and physical delivery

We prefer to attend the handover, whether you are buying or selling, so that completion runs smoothly. Depending on the VAT solution and structure, delivery may need to take place in international waters, or involve export to a non-EU country.

Protecting the purchase price

Standard yacht contracts require the buyer to pay the full price before receiving title, leaving a gap in which the buyer has paid but holds no legal interest in the yacht. We often recommend that Jaffa & Co acts as escrow agent, so that funds and title documents are pre-positioned and released together.