Our CEO, Andy Morgan, shares with us the buoyant growth in the European yacht charter market, the most iconic destinations and how to charter in European waters.

"Since we expanded to the Cayman Islands in 2020, and having relocated myself to the U.S this summer to expand our operations in the states, I am frequently in conversations regarding our services in the yachting space, particularly on yacht registration in Europe.

Our Cayman office was launched to cater to non-EU yacht clients that are seeking to personally enjoy or commercially operate their vessel in European waters. In the following article, I share guidance on how to sail vessel in Europe, privately and commercially as a non-EU resident, in addition to an analysis of the European yacht market.

The European Yachting Sector

The yachting charter market in Europe is particularly buoyant, estimated to be worth $5.79 billion in 2025 and is expected to double in size by 2034, reaching $12.72 billion.

Superyachts ranging from 20 to 50 feet in length generated the most revenue in 2024, primarily due to the rising population of High-Net-Worth Individuals, particularly in Europe, Asia, and the Middle East, as well as demand for growing luxury travel experiences.

Regulatory shifts in Europe have also loosened requirements for foreign-owned vessels, which has expanded Europe’s superyacht charter market to include a broader type of vessel. These changes have reduced operational complexities and created a more unified European market. An example is the new ‘e-Charter Permission’ system introduced in Greece, which enables non-EU-flagged vessels over 35 meters LOA to charter for 28 days annually in Greek waters without requiring a regular charter licence.

Strong International Demand

The Mediterranean offers a vast number of premier yachting hotspots that span several countries within proximity to each other. Yacht owners or charterers can enjoy a vast landscape of cultural diversity, sailing between countries within the same day if they please. There has been a continuous rise in demand for private travel since the pandemic in 2020, and luxury superyachts offer exclusive amenities like resort-style accommodations and a more personalised experience. The French and Italian coastlines have always been top international destinations in the summer; however, an increasing number of non-European nationalities, such as Australians and Americans, are exploring Greece and Croatia.

Average Costs of the European Charter Market

The cost of chartering a yacht in Europe is largely determined by the size of the vessel, operational costs such as crew and facilities, the season, and the destinations it sails to. During Europe’s peak season, from July to August, charter prices rise by 20-50%. Some of the most popular destinations in Europe include France, Italy, Croatia, and Greece, and prices depend on the country’s status, season, boat size, crew, and other factors.

Italy leads the way, with an average price of €9,110 per week to charter a vessel during peak periods, followed by Greece, Croatia, and France, which average between €6,000 and €8,000 per week. These price points relate to smaller yachts, such as bareboat or modestly crewed yachts, that are 9–15 meters in length.

Luxury superyachts, defined as those over 25 meters and up to 90 meters long, are more expensive, with an average charter price of €50,000, and often prices of €500,000+ per week in Europe during peak season. Superyachts with higher square footage offer higher crew-to-guest ratios, typically featuring 5-8 cabins, top-tier chefs, and exclusive amenities on board, including lounges, gyms, beach clubs, pools, and helipads.

Most Popular European Destinations

Europe boasts some of the most exclusive yachting hotspots in the world, offering the ultimate luxury experience, including world-class marinas, scenic coastlines, prestigious beach clubs, and Michelin-starred dining.

Italy

The Italian yacht market is predicted to grow at the fastest rate, with a 6.9% increase from 2024 to 2030, as iconic destinations such as the Amalfi Coast and Capri continue to entice yacht owners every year. The Italian coastline is renowned for its dramatic and beautiful landscapes, exquisite food and wine, and rich heritage, with Naples, Pompeii, and Roman sites nearby. Sardinia is also a popular destination in Italy, offering secluded coves, crystal-clear waters, regattas, and private beach clubs.

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France

The Côte d’Azur, along the French Riviera, is one of the most iconic luxury destinations, encompassing Cannes, Saint-Tropez, Antibes, and Monaco. Known for its glamour, exclusive social events, ultra-modern marinas, and stunning azure waters, it attracts A-list celebrities.

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‍‍Greece

A paradise in the Aegean Sea, Greece is a playground for yacht charterers seeking a cultural experience and laid-back adventure, with over 6,000 islands to explore. From volcanic landscapes in Mykonos to medieval architecture in Rhodes, Greece boasts a rich history and stunning natural beauty, complemented by competitive charter rates and affordable local hospitality.

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‍Croatia

Another historic region with natural beauty is Croatia. Spanning over 1,000 islands, home to waterfalls and pine-covered coves, the Croatian coast and Dalmatian Islands offer an affordable luxury experience, making them ideal for family charters. It's easy cruising distances are ideal for exploring medieval towns such as Dubrovnik, Split, and Hvar, known for their old architecture with a Venetian flair.

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Balearic Islands

There’s only one place that comes to mind when you think of legendary nightlife and bohemian beach scenes: Ibiza. The Balearic Islands offer a diverse landscape to explore, ideal for party lovers but also sailors seeking cultural experiences. Mallorca and Formentera have luxury marinas and untouched turquoise anchorages.

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Montenegro

A fast-growing luxury market, Montenegro is a relatively new destination that is becoming increasingly popular due to its competitive prices and attractive environment. Competitive berthing fees, lower VAT, and operational costs are key advantages that attract superyachts to the Adriatic region. Montenegro also offers a state-of-the-art marina, the Fjord-like Bay of Kotor, forested peaks, and Venetian towns.

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Chartering a Yacht in Europe – as a Charterer

If you plan to charter a yacht this season, the process and requirements will differ depending on whether you own the vessel or are simply looking to charter one.

If you’re an EU or Non-EU citizen seeking to charter a yacht, you can freely charter any commercial yacht within the EU without restrictions based on your citizenship. The process typically involves:

• Choose yacht type and destination (bareboat, skippered, crewed)

• Select a licensed EU charter provider (France, Italy, Malta, etc.)

• Sign charter agreement - governed by local maritime and VAT law.

• Pay applicable VAT - charged based on flag state and embarkation port.

• The VAT will depend on where the yacht is registered for charter, for example, France offers 20% VAT on charter fees whilst Croatia offers 13% VAT.

Chartering a Yacht in Europe – as an Owner with EU-Citizenship

If you’re an EU-resident owner seeking to charter your yacht in the EU commercially, the following rules apply:

• Register the yacht commercially, even if flagged outside the EU. Non-EU flags (e.g. Cayman Islands, Marshall Islands) are accepted; however, some countries prefer EU-flagged yachts. All commercially registered yachts must comply with MARITIME SAFETY, MLC, and ISM/ISPS codes.

• Import the yacht into the EU: Pay VAT on the value (if not already EU VAT-paid) and register the yacht for VAT. VAT must be charged on all charter fees.

• Maintain commercial books, invoices and filings.

• Ensure compliance with all local licensing charter rules, which may vary depending on the country.

• Utilise a fiscal representative or agent in your operating country.

It’s essential to consider the flag and import implications before purchasing a yacht. Having worked in the yachting sector, assisting High-Net-Worth Clients with VAT registration and ownership structuring, I am happy to provide any consultation if needed.

Chartering a Yacht in Europe – as an Owner with Non-EU Citizenship

If you are a non-EU resident and own a non-EU-flagged yacht, you have two main options to operate legally in EU waters:

The Cayman Islands – Temporary Admission Regime

The Temporary Admission regime is applicable for private use only, meaning the yacht cannot be used commercially by non-EU residents in EU waters. The regime allows non-EU-flagged yachts to sail in EU waters for up to 18 months VAT-free.

How to Sail in the EU under the TA Regime

• Ensure your yacht qualifies for Temporary Admission. Non-EU-flagged yachts, such as Cayman Islands or Marshall Islands-registered yachts, owned and operated by individuals or companies with residency outside of the EU, are permitted.

• Prepare documentation (such as certificate of registry, proof of ownership, etc.)

• Declare Temporary Admission upon arrival at a country with a customs office.

• Retain proof of Temporary Admission entry, such as a customs stamp, confirmation or certificate.

Yacht Engaged in Trade (YET) Regime

The Yacht Engaged in Trade regime is applicable for non-EU-flagged yachts that are under 24 meters, which wish to enter EU waters to operate commercially. This regime permits non-EU yacht owners to charter their non-EU-flagged yacht for a maximum of 84 days per year. The yacht is not required to switch to commercial registration permanently, nor is it subject to paying full EU VAT on import.

How to Sail in the EU under the YET regime

• The non-EU resident must register the yacht under the flag of the Cayman Islands or the Marshall Islands. Only motor or sailing yachts that measure under 24 meters LOA are permitted.

• The yacht must be classed with an IACS member and hold complete technical requirements with the Large Yacht Code or equivalent. It will be required to undergo a survey and technical inspection.

• The yacht must maintain the relevant safety requirements, commercial equipment on board, and meet the MLC and STCW crew standards.

• Must obtain a YET Certificate of Compliance (COC) and Temporary Certificate of Registry during charter periods.

It’s essential to note that charter under the YET regime is currently only accepted in France and Monaco and is only permitted for non-EU individuals or entities.

Interested in the Temporary Admission Regime or Yacht Engaged in Trade Programme?

I have worked closely with yacht owners for over twenty years by assisting with global yacht registration and ownership structuring for both commercial and private yachts. I provide yacht owners with guidance on choosing the most appropriate flag that aligns with their intended use of the asset and how to maximise its value.

We established an office in the Cayman Islands in 2020 and assist many yacht owners with the Temporary Admission and Yacht Engaged in Trade regimes. If you would like to know more about yacht registration in the Cayman Islands, feel free to contact me directly. I’d be happy to discuss your requirements via a call."

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