Revolution in Superyacht Ownership: How a Legal Ruling Reshaped the Landscape of Tax and Governance

The winds of legislative change are billowing the sails of superyacht ownership. The epicentre of this revolution? A game-changing ruling from Germany’s Federal Fiscal Court on tax and governance.

For years, yacht owners and their legal advisors have strived to construct robust yacht-holding structures in a complex and often cloudy legal landscape. However, the spring of 2025 brought new currents of clarity to assist superyacht owners in their navigation. The Court’s landmark decision expands the protections and benefits of family foundations beyond EU’s borders and validates them as legitimate channels for superyacht ownership. This ruling not only establishes a sturdier legal framework but also sharpens the requirements necessary to demonstrate genuine separation of ownership and control.

However, a clear understanding of VAT realities is crucial. Relief under Temporary Admission (TA), a scheme for non-EU yachts cruising the EU, hinges on the yacht being owned/used by persons living outside the EU customs territory. While welcoming, TA doesn’t provide a free pass for EU-resident owners seeking private usage - the path to compliance demands import and VAT.

The veritable sea-change in tax and governance not only lessens uncertainties around tax laws but also aligns with Controlled Foreign Company regulations for operating incomes or passive cash flows. As superyacht owners adapt to the fresh breeze of transparency ushered in by this legal ruling, the future holds clearer waters and straighter sailing in the realm of superyacht ownership.