Embarking on your very first yacht charter is a thrilling journey into the world of luxury, but navigating the complexities of this experience can be overwhelming. We’re here to simplify the process, offering guidance on crucial aspects such as selecting the right yacht and understanding ideal cruising destinations. This article aims to provide you with a comprehensive understanding of what to expect, empowering you with knowledge and confidence as you begin on your inaugural yachting journey. Join us as we break down the essentials, share valuable insights, and ensure that your first time on a yacht charter is nothing short of extraordinary.
Charter Fees – What You Need to Know on a First Time on a Yacht Charter
Included
The specified charter fee covers the rental and insurance of the yacht, crew salaries, and the yacht’s laundry.
The charterer incurs additional expenses for fuel for the main engine and generators, watersports equipment, all operational costs, harbour fees, complete food provision (including soft and alcoholic beverages). Additionally, communication charges and local taxes are not included in the charter fee.
Expenses/APA on a first time on a yacht charter
During a charter, the ‘Advanced Provisioning Allowance‘ (APA), ranging typically from 30% to 35% and calculated based on the charter fee, covers additional expenses. This fund, the APA, is transferred to the yacht before the charter commences. This enables the crew to cater to your specific requirements in advance, with all purchases made at cost.
Upon the charter’s conclusion, the Captain will provide a comprehensive itemised statement of the APA account along with receipts. Should the account show a surplus, the excess amount will be refunded. So in the event of a deficit, settlement can be made in cash or, subject to the Captain’s approval, through a wire transfer.
Charter Fees – Be prepared prior to your first time on a yacht charter
Taxation
VAT is due in the country where the charter starts. A summary of rates is shown here but we will provide the applicable rate of VAT for any charter you are considering.
FRANCE
VAT Rate = 20%
ITALY
VAT Rate = 22%
SPAIN
VAT Rate = 21%
CROATIA
VAT Rate = 13%
MONTENEGRO
VAT = 0%. If a charter starts in Montenegro (which is not an EU country) then cruises into Croatian Waters, Croatian VAT is payable at 13% for each day the yacht is in Croatia.
GREECE
Greek flagged yachts charge 9.6-13% VAT. Other yachts are currently exempt from VAT but the charter must start and finish outside Greece. Equally this could change. Guest changes are not allowed once yachts without a Greek License are in Greek waters.
TURKEY
20% VAT for Turkish Flagged Vessels, and 0% for Foreign Vessels. However, all foreign vessels must obtain either a cruising permit (if under 39m) or a Turkish Charter License (if over 39m) for an extra fee, even if arriving in Turkey with guests on board.
OTHER
Taxes applicable elsewhere in the world include Bahamas 4% cruising tax plus 10% VAT, USA on a state-by-state basis, Tahiti 5%, Fiji 5%, Australia 10%, New Zealand 15%. To conclude, your charter broker will advise you of any taxes due.
Whilst thought to be correct, the information provided is done so in good faith and is not guaranteed. 212 Yachts is not a tax advisor. The charter agreement/contract signed will take precedence over the information provided in this article.
What You Need to Know on Your First Time on a Yacht Charter
Delivery Fees
In cases where a charter commences outside the yacht’s home port, the owner may apply a delivery fee. This fee accounts for the expenses related to fuel (and sometimes time) required to relocate the yacht from its home port to the starting point of your charter and back. Our commitment is to recommend yachts in your desired area to minimise the likelihood of these fees. When unavoidable, we actively negotiate with owners to minimise these charges on your behalf.
Security Deposit
Some yachts may require a security deposit for charters and events. The deposit is held until the charter’s end. If no damage is confirmed by the Captain, a full refund is issued. Furthermore, damages incur deductions for replacement or repair costs from the deposit.
Charter Duration
There are no standard durations or changeover days for yacht charters, giving you the freedom to choose the dates that suit you. However, minimum booking periods can apply during peak times.
Payment Terms
- DEPOSIT 50% of the charter fee is due upon signature of the contract.
- BALANCE 50% of the charter fee, the VAT and APA is due 1 month before the charter.
If the contract is signed less than one month before the charter, payment is due in full. If the charter is arranged a year or more in advance, payment can be arranged in three installments of 25%, 25% and 50% plus VAT and APA.
Season Rates
HIGH SEASON
July, August, Christmas and New Year, plus events such as the Cannes Film Festival and Monaco Grand Prix.
LOW SEASON
All other times.
Crew Gratuity
If you have enjoyed your charter experience, it is customary to give the crew a gratuity. Crew gratuities are, of course, entirely at your discretion. The industry guideline is between 5% -15% of the charter fee.
Insurance
The yacht provides third-party liability coverage throughout the charter period. It’s important to be aware that the yacht’s insurance does not cover your personal liability. The MYBA contract strongly advises the charterer to take out their own policy for personal liability.
Cancellation
In the event of a charter cancellation, the owner retains any received or due payments. The Owner must minimise your loss by reselling the dates and providing you with the resale proceeds. Finally, cancellation insurance is an option, and you may explore extending your existing travel insurance to include the charter through your current provider.
Toys – Learn about Licenses and Restrictions Prior to Your First Time on a Yacht Charter
Personal Watercraft
Operating personal watercraft, such as a waverunner or jetski, often requires a license in many countries to meet insurance and legal standards. Additionally, there may be a minimum age requirement, which varies by country. Ensuring that guests using personal watercraft have the necessary license is your responsibility. Your charter broker can offer details on obtaining a license or onboard training. In certain instances, yachts serve as accredited personal watercraft schools, enabling guests to acquire their license during the charter.
Scuba Diving
Many yachts typically provide rendezvous diving, integrating dives into your itinerary. Guests must have a valid PADI license or equivalent certification to use the SCUBA equipment available for guest use. Guests may also need to sign a waiver before participating in dives from the yacht.
Important Information to Know on a First Time on a Yacht Charter
Dining aboard
Top charter chefs craft custom menus exclusively for your charter, creating world-class dishes tailored to your tastes. Firstly, we request a detailed provisioning form outlining your likes and dislikes. Providing as much detail as possible helps the chef gain insight into your preferred cuisine. Chefs then source the finest produce from various regions to craft delectable dishes daily. Furthermore, whether you enjoy a laid-back lunch of freshly grilled seafood on the sundeck or savor an opulent dinner in stunning settings with your favorite people, dining on charter offers a delightful experience. Rest assured that the chef will prepare exactly what you desire, whenever you like.
Children
Nearly all yachts warmly welcome children of all ages, from newborns to teenagers. Crews take pleasure in hosting and entertaining children, with many yachts equipped to cater to families with small children. Children must always be under the charterer’s supervision and regular crew members are not responsible for children onboard. Vessels may include nanny cabins, baby equipment, and safety features. Some yachts, with extensive inventories of watersports toys, are ideal for teenagers. Lastly, your broker can guide you in selecting yachts that align with your family’s requirements.
Smoking
No smoking allowed inside the vessel.
Wi-fi Connectivity
The majority of yachts have Wi-Fi connectivity, and utilise local 3G/4G/5G services or satellite connections. Smaller yachts usually rely on a 3G connection, functional within a few miles offshore. In addition, larger yachts often feature VSAT, ensuring a continuous satellite connection available in nearly all parts of the world, however this excludes the most remote areas. If you have connectivity concerns, we can furnish more detailed information about the specific yachts under consideration.
Your Journey is Our Priority, Ensure Your First Time on a Yacht Charter is Perfect from Start to Finish!
Communicating your preferences and requirements to your 212 Yachts charter broker is the key to unlocking a truly tailored and unforgettable yacht charter experience. Before booking your yacht, sharing as many details as possible ensures not only a superior level of service but also effective management of your expectations. At 212 Yachts, we understand that each yacht is unique, and by understanding your likes, dislikes, and specific requirements, we can curate a charter that aligns seamlessly with your desires. Your journey is personal to us. Therefore, make sure to express your preferences upfront, so that we can guarantee a yacht charter that exceeds your expectations. Get in touch with our team today!