As yachting is a transnational business, money across borders is paramount. In this article we discuss how international bank accounts simplify life for marine businesses and users.
Can International Bank Accounts Handle Multi-Currency Transactions for Yachts?
One of the benefits of an international bank account is its multi-currency trading features. Yachts traveling across borders will incur expenses in different currencies.
An international bank account will give owners and operators the ability to receive checks, pay bills, and transfer money from one currency to another.
A yacht, for example, can take anchor in the Bahamas, and buy fuel and provisions there in Bahamian dollars. After that, it arrives in Italy, and docking fees are paid in euros.
The international account allows these payments to be made simply without having to exchange currency each time. Many offshore banks even offer debit/credit cards that can be used anywhere in the world and payments are automatically converted into the payment currency at attractive rates.
This is incredibly handy when it comes to controlling the finances of an international yacht. Crew pay, repairs, maintenance – everything comes from the same account wherever you go and in whatever currency you choose.
Charter fees or sale proceeds can also be transferred directly to owners, and in foreign currencies.
In theory, an international bank account is a global wallet that allows you to easily convert money as needed.
Why Are International Bank Accounts Important for Offshore Yacht Financing?
Getting or constructing a luxury yacht takes considerable funds for most people. A foreign bank account is a very useful thing when you need to obtain offshore yacht loans.
Most yacht mortgage and construction loan lenders require that you have an account with them throughout the term of the loan.
This allows you to see and manage the flow of funds. You can take payments, interest and charges directly. The borrower has confidence that the loan money is being used for the intended purpose.
Also, international accounts offer flexible repayment periods. Owners who live in a different country than the lender will not have to worry about making timely EMIs.
Offshore countries sometimes even provide tax breaks and interest rates for yacht loans made through their banks.
For instance, yacht loans with licensed banks in the Commonwealth of Dominica are deductible as interest payments.
The international banking relationship makes it easier for both borrowers and lenders to apply for and track loans. It provides a convenient channel of financing and ownership for luxury ocean-spanning ships.
How Do International Bank Accounts Support Global Yacht Registration?
Registering a yacht is also both legal and practical. But the ideal flag state may not be the owner's country of residence.
Here an online foreign bank account can come in handy as it meets local banking requirements for yacht registration outside of the country.
Most foreign registries require a bank account number to establish creditworthiness on the island. Having an account with an offshore bank regulated in the flag state you’re interested in overcomes this mandatory requirement.
Using this account allows you to confirm regular business interactions and prove residency in order to be eligible for registration.
Additionally, some registries provide incentives to foreign owned yachts registered locally. For example, the Cayman Islands exempts import duties from tax if at least one member of the yacht owner's company has a bank account in the territory.
With a customized international bank account, yachters are able to select the most optimal flags around the globe after evaluating regulatory policies and financial benefits.
This also simplifies jurisdictional hopping because bank regulation is consistent.
What Are the Tax Advantages of Using International Bank Accounts in Yachting?
Tax compliance is also one of the major benefits of international banking. Many offshore centres charge no or minimal taxes on money earned and deposited abroad.
You can make substantial savings by channelling yachting profits through licensed banks in such tax-reduced locations.
Individual earnings from yacht charters, for instance, would be kept in a Bahamian bank account and not subject to taxation by the Bahamas.
Similarly, any capital gains from the future disposition of the yacht are exempt if the transaction occurs through that account. A British Virgin Islands international bank, for example, exempts global earnings from a locally-registered yacht leasing company.
It’s a powerful reason for non-resident yacht owners to establish offshore structures and invest with certain offshore banks. Shipyards and other active yachting enterprises also receive repatriated earnings tax exemptions from some banking jurisdictions.
International bank solutions allow both private yacht owners and yachting businesses to legally reduce tax obligations and raise cash flows internationally.
Prompt guidance helps you to navigate the best possible financial plans for each situation.
What Fees Should Yacht Businesses Expect from International Bank Accounts?
While international accounts offer obvious financial benefits, there are hidden costs that you need to account for.
You have to take into account upfront app fees, monthly service fees, transaction fees. But all-in-one digital banks, such as Jetonbank, make everything low cost.
At Jetonbank, you don’t have to maintain a minimum balance or incur monthly account fees. Incoming wire transfers and debit card transactions are not subject to charges. Inter-currency transfers are charged a 0.5% exchange fee and spread-free. Rules compliance such as online KYC are all handled via the app.
The operating expenses of a Jetonbank international account are negligible compared to the gains earned. Yacht owners and crew enjoy global-level banking, so they can manage finances in one go.
Affordable and on-demand via the app makes digital banks the best option for roving maritime professionals.
International banking has become an integral part of the global yachting market today, for both individual and corporate consumers.
From multi-currency payments and lending, to international registration and taxation, a world bank account brings enormous benefits.
Digital banks lend themselves especially to the demands of the mobile maritime community. Jetonbank offers a fully licensed offshore banking solution designed for world financial control at the fingertips.
Interested yacht owners and industry professionals can take a peek into Jetonbank’s portfolio and get started with an international account online.
