How to buy a yacht comes down to a clear sequence: define how you will use it, charter first, set a budget that includes about 10% of the yacht’s value a year in running costs, and choose between a new build and a pre-owned yacht. For a pre-owned yacht, you then sign a Memorandum of Agreement, usually the MYBA form, pay a 10% deposit into escrow, carry out a sea trial and survey, and only then accept the yacht, settle flag, structure, VAT and insurance, and close. The steps that protect you most are the survey, the contract and the tax structure, and all 3 happen before the balance is paid.
Buying a yacht looks like buying a house on water. In practice it is closer to buying a small business: the yacht has staff, a regulator, an insurer, a tax position and a maintenance cycle, and each is set by decisions you make before closing. This guide walks first-time owners through the process in the order it actually happens, with a timeline and a due diligence checklist. It is general guidance, not legal or tax advice. It was last updated on 18 September 2026.
How to buy a yacht: key facts
- Contract: most brokerage sales of larger yachts use the MYBA Memorandum of Agreement (MOA), which sets the steps from deposit to delivery.
- Deposit: typically 10% of the price, paid within a few banking days of signing into an escrow account held by a stakeholder.
- Inspection: the buyer can run a sea trial and a condition survey, including a haul-out at the buyer’s expense, before accepting the yacht.
- Commission: brokerage commission is normally paid by the seller out of the sale price.
- Running costs: plan on 10% to 15% of the yacht’s value a year, with crew the largest single cost.
- Temporary admission: a yacht registered and owned outside the EU can generally stay in the EU for up to 18 months without paying import VAT; in Great Britain the period can be up to 24 months.
- New builds: a large custom yacht typically takes 3 to 4 years from contract to delivery.
Before you search: how to buy a yacht that fits your life
Step 1: Define how you will use the yacht
Everything else follows from use. Before you look at listings, answer 4 questions honestly: where you will cruise, how many weeks a year you will be aboard, how many guests will usually join you, and whether you want to charter the yacht out when you are not using it.
A family spending 3 weeks a year in the Mediterranean needs a very different yacht from an owner planning ocean passages or weekend hops between the islands of Croatia. Range, hull type, cabins, crew and even the regulatory code all follow from these answers.
Step 2: Charter before you buy
A week aboard a yacht of the size you are considering will tell you more than any specification sheet. You will learn whether you prefer the steady comfort of a displacement hull or the speed of a planing hull, how much space your guests really need and what a professional crew is like to live with. Many buyers change their target size, up or down, after a charter. We explain the reasoning in our guide to why smart yacht buyers charter first, and our Mediterranean yacht charter guide covers 2026 rates and booking.
Step 3: Set a budget that includes running costs
Budget for 2 numbers: the price and the annual cost of keeping the yacht. The industry rule of thumb is that running costs are about 10% of the yacht’s value a year, and independent analysis puts realistic ranges at 8% to 20% depending on size, age and use. On a 50 m motor yacht, crew typically takes 30% to 40% of the budget, followed by maintenance, insurance, berthing and fuel.
Add purchase costs on top of the price: survey, haul-out, legal fees, registration, any VAT due and initial outfitting. Set aside a refit reserve each year, because large yachts usually need a significant refit every 5 to 7 years.
Step 4: Should you buy a new build or a pre-owned yacht?
| New build | Pre-owned | |
|---|---|---|
| Time to use | About 3 to 4 years for a large custom yacht; less for a production yacht | Weeks to a few months |
| Price | Typically 20% to 50% above comparable pre-owned | Lower; the first owner has absorbed early depreciation |
| Specification | Your layout, systems and finish | Existing layout; changes need a refit |
| Main risks | Yard delays, stage payments, change orders | Hidden defects, deferred maintenance |
| Key protection | Build contract, payment guarantees, owner’s representative | Survey, sea trial, class records |
If you are working out how to buy a yacht for the first time, a well-maintained pre-owned yacht is usually the faster and lower-risk route, provided the survey is thorough. A new build suits owners who know exactly what they want and can wait.
How does the yacht buying process work?
Step 5: Appoint a broker and understand central agency
A buyer’s broker searches the market, advises on value, negotiates and manages the process through to closing. In the MYBA system common in Europe, the seller often appoints a central agent with the exclusive right to market the yacht. Your broker then works with the central agent, and the commission, normally paid by the seller, is shared between them. Using your own broker usually does not increase the price you pay, and it gives you an adviser whose job is your side of the deal.
Choose a broker who belongs to a recognised industry association and is candid about a yacht’s weaknesses. Our conversation with a Monaco-based yacht sales broker explains how acquisition, structure and future resale fit together.
Step 6: Sign the MYBA Memorandum of Agreement and pay the deposit
Once price and main terms are agreed, the parties sign the MOA. It records the price, the place and date for inspection, the closing date and place, what is included in the sale, and the rules for acceptance or rejection. Special terms go into an addendum.
The buyer then pays a deposit, typically 10% of the price, into an escrow account held by a stakeholder, usually a broker, lawyer or escrow agent. Under the standard form this happens within a few banking days of signing. The deposit is your leverage and your exposure: if you miss a deadline or reject the yacht without a valid reason, you can lose it.
Step 7: Sea trial and survey
The sea trial comes first. You and your surveyor see the yacht underway and check engines, steering, stabilisers and systems. Under the MYBA process the trial is typically limited to a few hours, and you must decide promptly afterwards. If the trial is unsatisfactory, you can reject the yacht and recover your deposit.
Next comes the condition survey, often with a haul-out so the hull, running gear and underwater fittings can be inspected. Surveyors grade defects by seriousness, from safety-critical to cosmetic. The survey and haul-out are at the buyer’s expense. The survey report is the basis for your decision to accept, to accept subject to repairs or a price adjustment, or to reject the yacht for a serious defect as the contract defines it. Read the contractual deadlines carefully: ambiguous reporting or late notice can amount to acceptance by default.
Which legal, flag and tax checks do you need?
Step 8: Check classification, flag and ownership structure
Classification. Most yachts above 24 m are built and maintained under the rules of a classification society, typically a member of the International Association of Classification Societies (IACS). Class status tells you whether the yacht has kept up with its periodic surveys and any recommendations. Ask for the class records and check that no conditions are outstanding, because they transfer with the yacht.
Flag. The flag state sets the safety code, crew certification and survey regime. For commercial yachts of 24 m and over, the main codes include the Red Ensign Group Yacht Code, used by the UK and its related registries such as the Cayman Islands, and the Malta Commercial Yacht Code 2025, in force since 1 July 2025. The Marshall Islands is another widely used yacht registry. The right flag depends on where you cruise, whether you charter and who your crew are.
Ownership structure and VAT. Most larger yachts are held through a single-purpose company, which simplifies liability, privacy and resale. VAT depends on where the yacht is used and who owns it. In the EU, an imported yacht is in principle subject to VAT, while a yacht registered outside the EU and owned by a person established outside it can use temporary admission for up to 18 months. Great Britain allows up to 24 months for qualifying non-UK residents. These rules interact with your tax residence and any property you own, so take advice from a specialist yacht lawyer and tax adviser before signing the MOA.
Step 9: Arrange insurance
Place hull and machinery cover and protection and indemnity (P&I) cover before closing, so the yacht is insured from the moment it becomes yours. Insurance typically costs about 0.5% to 2% of the hull value a year, depending on value, cruising area, crew experience and claims history. Insurers will want the survey and details of the captain and crew.
What happens at closing and after?
Step 10: Plan crew and management
Decide before delivery who will run the yacht. Smaller boats may need only a captain on call; superyachts need a full crew under proper employment contracts, a management company for technical, crew and compliance matters, and a clear annual budget. Where the yacht will be based matters too: Mediterranean home ports differ in berthing cost, fuel and tax, and Montenegro, for example, sells duty-free fuel to yachts, as we explain in our note on Porto Montenegro.
Step 11: Closing and delivery
On the closing date, the buyer pays the balance, normally 90% of the price, and the seller delivers the documents: the bill of sale, a certificate of deletion from the previous registry, class and statutory certificates, and any company documents if shares are being transferred. The parties sign a Protocol of Delivery and Acceptance, and the deposit is released. The place and timing of closing are often chosen to fit the VAT and customs position, so plan them with your advisers.
How long does it take to buy a yacht?
The timeline below is indicative for a pre-owned yacht. Each deal is different, and contract deadlines always prevail.
| Stage | Typical duration (indicative) |
|---|---|
| Define use, charter and set budget | 1 to 6 months |
| Search, viewings and offer | 2 weeks to 3 months |
| Sign MOA and pay 10% deposit | A few days |
| Sea trial, survey and haul-out | 1 to 3 weeks |
| Acceptance, repairs or price adjustment | 1 to 3 weeks |
| Flag, structure, insurance and crew set-up | Runs in parallel, 2 to 6 weeks |
| Closing and delivery | On the agreed date |
| New build, large custom yacht | About 3 to 4 years from contract |
Due diligence checklist before you accept a yacht
- Title: confirm the seller owns the yacht, and obtain evidence that it is free of mortgages, liens and debts.
- Registry: check the current registration and that a deletion certificate will be issued at closing.
- Class: review class status, survey history and any outstanding conditions.
- Survey: commission an independent surveyor, including a haul-out and engine inspection.
- Maintenance records: check logs for engines, generators, paint and major systems, and when the next refit is due.
- VAT and customs: establish the yacht’s VAT status and obtain supporting documents.
- Charter history: if the yacht has chartered, check its commercial certification and records.
- Crew: review existing crew contracts if the crew are staying on.
- Inventory: agree in writing what is included, from tenders and toys to spares.
- Contract deadlines: diarise every date in the MOA for acceptance, notices and closing.
Frequently asked questions
What is the first step when buying a yacht?
The first step is deciding how you will use the yacht: where you will cruise, for how many weeks a year, with how many guests, and whether you will charter it out. These answers set the size, hull type, crew and regulatory requirements. Chartering a similar yacht for a week is the most reliable way to test those assumptions before you buy.
How much deposit do you pay when buying a yacht?
Under the MYBA Memorandum of Agreement, the usual deposit is 10% of the purchase price. It is paid into an escrow account held by a stakeholder, typically a broker, lawyer or escrow agent, shortly after signing. The balance of 90% is paid at closing. You can usually recover the deposit if you reject the yacht on valid grounds within the contract deadlines.
What is a MYBA Memorandum of Agreement?
The MYBA Memorandum of Agreement is the standard contract used for most brokerage sales of larger yachts. It sets the price, the deposit, the timing and place of the sea trial and survey, the rules for accepting or rejecting the yacht, and the closing arrangements. Buyers and sellers add specific terms in an addendum, ideally reviewed by a specialist yacht lawyer.
Do I need a survey when buying a yacht?
Yes. A condition survey by an independent surveyor, usually with a haul-out, is the most important protection a buyer has. It identifies safety-critical, important and cosmetic defects and forms the basis for accepting the yacht, negotiating repairs or a price reduction, or rejecting it. The buyer normally pays for the survey and haul-out.
Who pays the broker when you buy a yacht?
Brokerage commission is normally paid by the seller out of the sale price. Where a central agent markets the yacht, the commission is usually shared between the central agent and the buyer’s broker. That means a buyer can usually have their own broker without paying a separate fee, although advisory or new-build consultancy services may be charged differently.
Do I have to pay VAT when I buy a yacht?
It depends on where the yacht is used and who owns it. A yacht imported for use in the EU is in principle subject to VAT, but a yacht registered and owned outside the EU can use temporary admission for up to 18 months, and Great Britain allows up to 24 months for qualifying non-residents. Take specialist tax advice before signing.
Buy your first yacht with LIVERIA Yachting
A good yacht purchase is decided early: in the use you define, the budget you set and the structure you choose before signing.
LIVERIA International Realty is a Mauritius-based luxury real estate agency with a presence in Dubai and London, recognised by the Luxury Lifestyle Awards in 2024 and 2026 and by the Global Elite Awards in 2025 and 2026, which named LIVERIA among the Top 100 Companies Worldwide in both years. LIVERIA Yachting helps clients charter, buy and sell yachts in the Mediterranean through its Monaco-based broker partner and trusted operators; if you are at the start, begin with chartering first. Reach us at [email protected].
Sources
- Superyacht Investor, Buying a superyacht: the Memorandum of Agreement (November 2025)
- International Institute of Marine Surveying, Analysis of the MYBA sales contract (January 2026)
- European Commission, Guidance note for pleasure craft (April 2026)
- GOV.UK, Sailing a pleasure craft into the UK temporarily for private use (July 2025)
- Transport Malta, Commercial Yacht Code 2025 (July 2025)
