Legal Essentials for Yacht Transactions

Yachts represent more than luxury—they are cross-border assets that require meticulous legal strategy, especially when acquisition, sale, or ownership structuring spans multiple jurisdictions. At AeroMarine Law, we specialize in the legal architecture behind yachting transactions, offering clients deep maritime law expertise coupled with practical, deal-tested insights.

Whether you’re acquiring a new build, chartering, or divesting, here are the key legal issues we advise on—and how we help clients navigate them.

1.

Title Clarity and Encumbrance Checks

Before any transaction proceeds, confirming clean and marketable title is essential. Our team conducts full registry reviews, ensures lien clearance, and vets corporate structures often involving offshore entities. We help clients avoid post-closing surprises such as hidden maritime liens or unrecorded mortgages.

2.

Choosing the Right Flag State

The vessel’s flag state affects everything from tax exposure and privacy to crewing requirements and operational restrictions. We assist clients in selecting and structuring under flag states like the Cayman Islands, Marshall Islands, Bermuda, Malta, or the United States, depending on the vessel’s intended use—private, commercial, or hybrid.

3.

VAT and Cross-Border Tax Strategy

One of the most critical (and often misunderstood) components of a yacht deal is VAT exposure. AeroMarine Law provides structuring solutions including:

• Temporary Admission Relief for non-EU beneficial owners

• VAT-exempt deliveries structured via offshore closings or intra-EU leasing vehicles

• Import duty and use tax planning for yachts entering U.S. waters or being permanently imported

Our goal is to ensure compliance while minimizing tax burdens.

4.

Survey Coordination and Technical Due Diligence

We work closely with client-appointed marine surveyors and class societies to ensure that physical condition, maintenance history, and compliance status are verified pre-closing. If the yacht is under construction or undergoing refit, we build milestone inspection rights into the contract.

5.

Negotiating the Sale and Purchase Agreement

A well-structured SPA can determine whether a deal is efficient—or litigious. We negotiate on behalf of buyers and sellers using MYBA templates, IYBA forms, or bespoke agreements, always including:

• Payment and escrow terms

• Delivery conditions

• Indemnity and limitation clauses

• VAT and customs responsibility

• Dispute resolution mechanisms

6.

Escrow and Transaction Closing

AeroMarine Law routinely serves as transaction counsel or escrow liaison for closings in Geneva, Miami, Monaco, or offshore ports. We ensure that funds are released only when all delivery conditions, registry changes, and tax obligations are satisfied, protecting clients’ financial and legal positions.

7.

Post-Closing Legal and Operational Support

Once the transaction is closed, our team supports owners with:

• Vessel registration and mortgage filings

• Corporate ownership restructuring

• ISM, ISPS, and MLC compliance

• Charter licensing, crewing contracts, and operations agreements

We also advise on U.S. Coastwise endorsements, Jones Act compliance, and U.S. charter structuring when U.S. waters are in scope.

Why Clients Choose AeroMarine Law

Our boutique model means clients benefit from senior-level attention, industry fluency, and cross-border deal coordination without the overhead of a large firm. As a dual-focused practice in aviation and maritime law, AeroMarine Law, P.A. brings a unique perspective to high-value mobile assets.

If you’re considering a yacht acquisition, divestment, or restructuring, let us help you navigate with confidence.

Contact AeroMarine Law, P.A. to schedule a confidential consultation.