Selling a yacht from Europe to the US: legal and tax guide

Selling a yacht from Europe to the US, or buying one in Europe from the US: the short answer

A transatlantic yacht deal turns on three questions, taken in this order: which law governs the sale contract, which flag the yacht will fly, and where VAT and import duties fall. A yacht sold in the EU and shipped or sailed out of the Union leaves without EU VAT, provided the export is proven. A yacht registered outside the EU and used privately by a US resident can stay in EU waters for up to 18 months without paying import VAT or duty, provided the conditions of temporary admission are met. The US side (customs duty, state sales and use taxes, registration) must be checked with US advisers before signing.

Updated: November 2026. Key provisions: Rome I Regulation (Articles 3 and 4); EU VAT Directive 2006/112/EC (Articles 70, 71 and 146); Union Customs Code (Article 250) and Delegated Regulation (EU) 2015/2446 (Articles 212 and 217); French Transport Code (Articles L. 5112-1-3 and L. 5114-6-1); Regulation (EU) 2024/1624 (Article 74).

This guide is for owners, buyers, brokers and family offices dealing with a yacht that crosses the Atlantic in either direction. It covers the European and French rules in detail; the US rules appear only as questions to put to your US advisers. For help with a specific deal, see our page for a yacht lawyer in France.

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1. Which law governs the sale contract

The parties can choose

Within the EU, the law applicable to a contract is set by the Rome I Regulation. Under Article 3, the contract is governed by the law chosen by the parties. Without a choice, Article 4(1)(a) applies the law of the country where the seller has his habitual residence. A yacht sold by a seller living in France to a US buyer, under a contract silent on the point, will in principle be governed by French law before a court in the EU.

Broker standard forms usually contain a choice of law and of court or arbitration. Read them before signing: the court chosen should be one whose judgment can be enforced against the other party and, if needed, against the yacht.

The Vienna Convention does not apply

The UN Convention on Contracts for the International Sale of Goods (CISG, Vienna, 1980) excludes sales of ships, vessels, hovercraft and aircraft (Article 2(e)). The contract therefore has to be complete: the Convention will not fill the gaps.

What the contract must cover

Most transatlantic deals use a memorandum of agreement (MOA). It should cover at least:

• the identification of the yacht: name, flag, registration and hull identification numbers, builder and year;
• the seller's statement on mortgages, liens, debts and arrests, backed by a warranty;
• the deposit: who holds it and when it is released;
• the sea trial, the survey and the conditions precedent;
• the place and date of delivery, and when risk and ownership pass;
• the closing documents: bill of sale, protocol of delivery and acceptance, deletion certificate, VAT and customs evidence;
• who pays for the change of flag, the export and the import.

Where the yacht is registered in France, any deed transferring ownership must be made in writing, on pain of nullity (Article L. 5114-1 of the French Transport Code), and the bill of sale must contain the particulars listed in Article D. 5114-51.

Mortgages and liens

A French-flagged yacht can carry a maritime mortgage. Since 1 May 2026, the rules are in Articles L. 5114-6-1 to L. 5114-6-10 of the French Transport Code: the mortgage must be made in writing, and mortgages rank by the date, hour and minute of registration. Obtain an up-to-date extract from the register just before paying the balance. For a yacht registered in the US or elsewhere, ask the registry for the equivalent extract and check with local counsel which claims can follow the vessel.

2. Choosing the flag

The French flag is reserved

The right to fly the French flag is granted through francisation (Article L. 5112-1-1 of the French Transport Code). A yacht can be francised only if it was built in the EU or has paid the import duties and taxes due (Article L. 5112-1-2), and if at least half of it belongs to nationals of an EU or EEA State, or to companies with their registered office or main establishment in France. A company established in another EU or EEA State qualifies only if the yacht is managed and controlled from a permanent establishment in France (Articles L. 5112-1-3, L. 5112-1-5 and L. 5112-1-6). A US buyer acting alone therefore cannot keep a yacht under the French flag.

The French annual tax on pleasure craft

France levies an annual tax on craft used for personal purposes (taxe annuelle sur les engins maritimes à usage personnel), under Articles L. 423-4 et seq. of the French Code of taxes on goods and services (Code des impositions sur les biens et services). It applies to French-flagged craft (Article L. 423-10) and to foreign-flagged craft whose owner or user lives in France, or is a company with its seat in France or controlled by such persons (Article L. 423-11). The tax is multiplied by three (under 15 metres) or five (15 metres or more) for a yacht flying the flag of a State listed as non-cooperative for tax purposes, or of a non-EU State without a tax treaty with France providing for exchange of information (Article L. 423-20).

A US owner who does not live in France and keeps a foreign-flagged yacht is in principle outside this tax. This changes if the owner moves to France or lets a French resident use the yacht.

Other registers and the US flag

The flag does not settle the VAT question: a yacht under an EU flag is not VAT-paid for that reason alone. It does matter for customs, because temporary admission (section 3) requires a yacht registered outside the EU.

Registration under the US flag is a matter of US federal law, with US ownership requirements. US law also restricts commercial use of yachts in US waters, in particular carrying passengers for hire between US ports. Do not charter a yacht bought in Europe in the US without prior US advice.

3. VAT and customs on the European side

Selling a yacht located in France to a US buyer

VAT applies to supplies made by a taxable person acting as such (Article 2(1)(a) of the VAT Directive): a shipyard, a dealer or a company that owns the yacht. A sale between private individuals is outside VAT, and what matters then is the VAT status of the yacht itself (see below). Where the seller is a business, two situations must be kept apart.

• The yacht leaves the EU. A supply of goods transported outside the EU by or on behalf of the seller, or of a buyer not established in the Member State concerned, is exempt from VAT (Article 146(1)(a) and (b) of the VAT Directive; in France, Article 262, I of the French General Tax Code (Code général des impôts) until 31 December 2026). The exemption depends on proof: the export declaration and evidence that the yacht actually left the EU. Without it, French VAT is claimed from the seller.
• The yacht stays in the EU. The sale bears French VAT at the standard rate of 20% (Article 278 of the French General Tax Code until 31 December 2026), unless a specific exemption applies, such as the one for vessels used on the high seas and carrying passengers for reward (Article 148(a) and (c) of the VAT Directive).

If the yacht is under temporary admission, the sale itself can end the arrangement and make VAT and duty due: check the customs position before signing. Note also that from 1 January 2027 the French VAT rules move from the General Tax Code to a new Book II of the Code of taxes on goods and services (Ordinance No. 2025-1247 of 17 December 2025), so the French article numbers will change.

VAT-paid status

The first document a European buyer asks for is the evidence that VAT was paid on the yacht in the EU, on its first supply or on import. Without it, customs may treat the yacht as non-Union goods and claim import VAT and duty. On a yacht worth €10 million, VAT at the French rate of 20% is €2 million.

A buyer who orders a new yacht from a shipyard in one Member State and bases it in another should also know that a boat longer than 7.5 metres, supplied within three months of first entry into service or after no more than 100 hours at sea, is a "new means of transport": VAT is then in principle due in the Member State of arrival, whoever the buyer is (Articles 2(2) and 138(2)(a) of the VAT Directive).

Importing a yacht from the US into the EU

A yacht brought from the US and released for free circulation in the EU is imported: import VAT becomes chargeable (Article 70 of the VAT Directive), at 20% in France, together with any customs duty under the EU tariff. Once these are paid, the yacht has Union status and can later be resold in the EU as a VAT-paid vessel. A US-built yacht may also need an EU conformity assessment (section 6).

Temporary admission for US owners

The Union Customs Code allows non-Union goods intended for re-export to be used in the EU with relief from import duty (Article 250 of Regulation (EU) No 952/2013). For a yacht, total relief applies if it is registered outside the EU in the name of a person established outside the EU and is used by a person established outside the EU (Article 212(3) of Delegated Regulation (EU) 2015/2446). The maximum period for privately used sea craft is 18 months (Article 217). VAT follows the same path: it becomes chargeable only when the yacht leaves the arrangement (Article 71(1) of the VAT Directive).

The conditions are applied strictly. Use by a person established in the EU, chartering, a sale to an EU resident or overstaying can make import VAT and duty due on the full value of the yacht. Keep evidence of the owner's residence, the date of entry into EU waters and who used the yacht.

4. The US side: questions for your US advisers

Victoris does not advise on US law. The points below deliberately contain no figures or references, because they depend on federal and state rules that change. Put them to a US lawyer and a US customs broker before signing.

• Customs duty: the duty on a yacht imported into the US depends on its tariff classification and its origin. Ask which classification applies, which entry procedure is needed and who will file it.
• State sales and use taxes: they vary from state to state and depend on where the yacht is delivered, registered and kept. Taking delivery in one state and keeping the yacht in another can still trigger use tax in the second.
• Registration: federal documentation or state registration, ownership conditions, and how a mortgage is recorded.
• Technical standards: US emissions and safety rules for imported boats and engines.
• Commercial use: restrictions on chartering a foreign-built or foreign-flagged yacht in US waters.
• Sanctions and anti-money laundering: US banks and service providers will screen the parties and ask about the source of funds.

5. Holding the yacht through a company

A French company

Holding a yacht through a French company rarely brings a tax benefit. Article 39, 4 of the French General Tax Code excludes from deductible expenses, unless the company can justify them, the costs of buying, renting or maintaining yachts and pleasure boats, depreciation included. In practice, deduction is accepted only for a boat genuinely used for the business, such as chartering. Private use of a company yacht by a director or shareholder is also a taxable benefit for that person.

French wealth tax

The French real estate wealth tax (impôt sur la fortune immobilière) only covers real estate assets (Article 964 of the French General Tax Code), and shares in a company count only to the extent of the real estate the company holds (Article 965). A yacht, which is movable property, is outside its scope, whether held directly or through a company.

Offshore and US companies

Where a French company controls a foreign entity holding the yacht, two French rules must be checked: Article 209 B of the French General Tax Code, which can tax in France the profits of a controlled foreign entity subject to a privileged tax regime, and Article 57, which adds back to a French company's profits any advantage transferred to a related foreign company, such as rent below market value. Other rules apply to French resident individuals. The US tax treatment of an LLC and of yacht expenses is a question for US tax advisers.

6. Technical compliance: CE marking

Directive 2013/53/EU on recreational craft applies to recreational craft with a hull length of 2.5 to 24 metres. A yacht in that range built for the US market, whose manufacturer has not carried out the EU conformity assessment, cannot simply be put into service in the EU: a private importer must first obtain a post-construction assessment (Articles 19(2) and 23 of the Directive). Yachts longer than 24 metres fall outside the Directive. Check the position, and its cost, before agreeing the price.

In the other direction, a European yacht taken to the US must meet US emissions and safety standards. Ask your US advisers.

7. Anti-money laundering rules: what changes in July 2027

The new EU Anti-Money Laundering Regulation (Regulation (EU) 2024/1624) applies from 10 July 2027 (Article 90). Two provisions concern yachts directly:

• persons trading in high-value goods must report to the financial intelligence unit every sale of watercraft acquired for non-commercial purposes at a price of at least €7.5 million (Article 74(1)(b));
• legal entities established outside the EU that acquire such watercraft (non-commercial purposes, price of at least €7.5 million) from these traders must submit their beneficial ownership information to the central register of the Member State concerned (Article 67).

Member States must transpose the accompanying Directive (EU) 2024/1640 by 10 July 2027 (Article 78). Banks already run identification and source-of-funds checks, on both sides of the Atlantic, together with sanctions screening. Preparing these documents early avoids delays at closing.

8. Chartering and leasing: the VAT rules

When a yacht is chartered or leased rather than sold, VAT applies to the hire, and the place of taxation depends on its length:

• short-term hire (a continuous period of no more than 90 days for vessels) is taxed where the yacht is actually put at the customer's disposal (Article 56(1) and (3) of the VAT Directive);
• longer hire of a pleasure boat to a private customer is taxed where the boat is actually put at the customer's disposal, if the supplier provides the service from a business or fixed establishment located there, and otherwise where the customer lives (Article 56(2));
• Member States may tax according to where the yacht is actually used and enjoyed, inside or outside the EU (Article 59a).

A yacht used for navigation on the high seas and carrying passengers for reward can benefit from VAT exemptions on its supply, chartering and maintenance (Article 148(a) and (c) of the VAT Directive). In France, the exemption covers commercial vessels used on the high seas (navires de commerce maritime affectés à la navigation en haute mer, Article 262, II, 2° of the French General Tax Code until 31 December 2026). These regimes require a real commercial activity and evidence of use. Leasing schemes advertised in other Member States should be checked against that State's current rules before you rely on them.

9. Step by step: a transatlantic yacht sale

The order of operations matters as much as their content. The checklist below follows a typical deal.

Two points cause most disputes. The deposit should be paid to an independent escrow holder under written release conditions, not to one party's own account. And the balance should be released only against the signed bill of sale, the deletion certificate (or a firm undertaking to deliver it) and the agreed VAT and customs evidence.

Frequently asked questions

Do I pay EU VAT if I buy a yacht in France and take it to the US?

If you buy from a business seller, no EU VAT is due when the yacht is exported outside the EU by or on behalf of the seller, or of a buyer not established in France, and the export is proven (Article 146(1) of the VAT Directive). If the yacht stays in EU waters, French VAT at 20% is due on the sale unless another exemption applies. A sale between private individuals is outside VAT.

Can a US citizen keep a yacht in the Mediterranean without paying EU VAT?

Yes, for up to 18 months under temporary admission, if the yacht is registered outside the EU in the name of a person established outside the EU and is used privately by such a person (Articles 212(3) and 217 of Delegated Regulation (EU) 2015/2446). Residence counts, not nationality. Chartering the yacht, or letting an EU resident use it, can end the relief.

Can a US citizen register a yacht under the French flag?

Not alone. At least half of the yacht must belong to EU or EEA nationals or to qualifying companies with their seat or a permanent establishment in France (Articles L. 5112-1-3, L. 5112-1-5 and L. 5112-1-6 of the French Transport Code).

Which law applies to a yacht sale between a European seller and a US buyer?

The law chosen in the contract. Without a choice, a court in the EU will apply the law of the seller's habitual residence (Article 4(1)(a) of the Rome I Regulation). The Vienna Convention does not apply to vessels.

Do I need a CE mark to bring a US-built yacht to Europe?

If the yacht is 2.5 to 24 metres long and has no EU conformity assessment, a private importer must obtain a post-construction assessment before putting it into service in the EU (Directive 2013/53/EU). Larger yachts are outside this Directive.

What changes in July 2027 for yacht sales over €7.5 million?

From 10 July 2027, traders in high-value goods must report to the financial intelligence unit every sale of a yacht for private use at a price of at least €7.5 million, and non-EU companies buying such yachts from them must register their beneficial owners in the EU (Articles 67 and 74 of Regulation (EU) 2024/1624).

Conclusion

A yacht sale between Europe and the US brings together three sets of rules that do not overlap: the law of the contract, the law of the flag, and the VAT and customs rules on each side. The costly mistakes come from taking them in the wrong order: signing before the VAT position is known, choosing a flag that rules out temporary admission, or releasing the price before the documents arrive.

Victoris advises on the French and European side of these transactions, in English, alongside your US advisers. To discuss a purchase or a sale, see our page for a yacht lawyer in France or use the booking link above.

Article written by Guillaume Leclerc, lawyer at the Paris Bar, 34 avenue des Champs-Élysées, Paris. Working languages: French and English.