The expense involved in owning and operating a luxury yacht is considerable. From the large initial investment in purchasing or constructing a vessel to maintenance, repairs, insurance and so on, yachting can be a costly pastime.
Those who own yachts and regularly go overseas with their yachts can take some of the main benefits an offshore bank account can offer.
In this article, we’ll discuss the reason why yacht owners need to get an offshore bank account and what benefits they will get from it.
Why Should Yacht Owners Consider an Offshore Bank Account?
One of the most obvious reasons why yacht owners may consider opening an offshore bank account is for convenience and ease of global payments.
When travelling abroad, having access to cash anywhere in the world can make it easier to pay, transfer money and make purchases overseas.
Offshore accounts allow you to access funds anywhere in the world without worrying about currency exchange rates or foreign transaction fees each time money is needed to be transferred or spent.
International ownership and flagging of ships are part of the mix, too. Most wealthy yacht owners keep their vessels registered in foreign countries for tax and operational benefits.
A Jetonbank offshore bank account associated with the offshore company and vessel structure creates a secure money center associated with yacht ownership and operation.
What are the Key Benefits of an Offshore Bank Account for Yacht Owners?
But other than the convenience, there are several other significant potential benefits of having an offshore bank account for yacht owners:
Increased privacy and confidentiality
Offshore banking markets adhere to more stringent privacy policies governing account holder data and activity. This level of financial anonymity can appeal to the wealthy. It’s also easier to secure your assets when you have the extra protection of an offshore account.
Access to niche financial services
The offshore banks for the wealthy and for high-value business transactions offer niche solutions for the yachting industry and its property. This would include private yacht financing, access to marine insurance, and investment options.
Tax planning opportunities
Depending on where you live and whether you flag the ship, a Jetonbank offshore account can make certain tax tricks possible. Income from international yacht charter or sales obtained from an offshore company might not be taxed in the country at all. Expert tax advisors can help with structuring.
Asset protection
If there are lawsuits, creditors or divorce, having liquid assets held offshore will ensure the money is protected from any lawsuits. That type of asset protection makes yachting a great business for the very wealthy.
Ease of international payments
As noted, offshore accounts make sending and receiving money across the globe effortless as foreign transaction fees are not charged. This makes it easy to pay foreign shipyards, crews, fuel dealers, etc when travelling abroad.
Can an Offshore Bank Account Help Yacht Owners with International Transactions?
In fact, having an offshore bank account is a huge asset that yacht owners can benefit from in handling money related to international activity, travel, and trading. A few examples:
- Ships cruising from one country to another can pay for fuel using the offshore account anywhere in the world. Do not need to carry several currencies.
- Crew pay, docking, repairs, and provisioning to foreign ports are all facilitated by paying in a single offshore account.
- Commissioning works in overseas shipyards for both new build and refits are easy to pay with invoices paid from the offshore bank.
- Worldwide yacht sales (purchase and sale) can also be accomplished through funds held in the offshore account rather than wiring cross-border each time.
- Charter fees for operating a yacht overseas can be paid directly into the offshore account and treated accordingly.
In a way, therefore, an offshore bank account is essentially a global money supply or "wallet" for yacht owners international business, transactions and cash flow requirements. This borderless flexibility holds tremendous practical appeal.
Are Offshore Bank Accounts Legal for Yacht Owners?
Typically, yes - offshore bank accounts are legal for yacht owners. Nevertheless, it’s crucial to get the reporting requirements in one’s country of origin clear.
In most developed nations like the US, UK, EU countries, individuals are expected to report offshore accounts and excess assets to their local tax authorities. If you don’t, you risk punishment.
When the offshore account is disclosed in compliance with the law, and not being used for criminal activities such as tax evasion, it is OK to have funds in an overseas account. Tax experts can advise you based on where you live and your financial circumstances.
It is important, too, to choose an offshore bank that is registered and regulated in a secure jurisdiction. By taking due diligence on the bank, you can be confident that the account is legal and legitimate.
Offshore banking with Jetonbank is a legitimate option for many yacht owners around the world.
Are There Tax Advantages to Having an Offshore Bank Account for Yacht Ownership?
For yacht owners who own a residence, or have a ship built, having a Jetonbank offshore bank account might unlock some tax advantages.
A few examples:
- Non-resident yacht owners who sail less than 183 days a year in their home country and sail their yacht offshore may pay little to no tax on income.
- International yacht chartering earnings paid by an offshore company and bank account could be subject to a lower effective rate than local taxes.
- Depending on the jurisdiction, capital gains on the sale of a yacht that are later sold through an offshore structure are subject to a reduced or exempt rate.
- Offshore firms also make it possible that costs such as repairs, technology, insurance, etc can be deducted from charter profits or sold at a later date.
But each individual’s tax circumstances will vary depending on where you live, what citizenship you have, and what financial information you have. It is highly advised to consult with an experienced offshore lawyer and tax consultant to consider your options and ensure compliance.
If structured appropriately, an offshore bank account might come with benefits but also paperwork and disclosure obligations.
Offshore banking might sound difficult and mysterious to some, but for international yacht owners it opens up incredibly practical benefits in terms of ease, security, finance, taxes and protection.
A legitimate offshore bank such as Jetonbank provides a safe and fully regulated service to this exclusive group of clients.
Yacht owners interested in offshore opportunities should talk to professionals to see if the benefits justify the cost or responsibility for their specific situation. For most, it is worth the effort to have an offshore bank account.
