Yacht VAT France and the French yacht tax (TAEMP) in 2027

In short: a yacht bought in France, or brought into France from outside the EU, bears French VAT at 20% unless an exemption or a suspension regime applies. A yacht kept for personal use under the French flag, or used by a French resident under a foreign flag, also pays an annual tax, the TAEMP. From 1 January 2027 the TAEMP is calculated on hull length and on engine power in kilowatts, with new rates and new age reductions.

Updated: November 2026. Key provisions: Articles 278, 292, 297 A, 298 sexies and 259 A of the French General Tax Code (Code général des impôts, CGI); Articles L. 423-4 to L. 423-37 of the French Code of Taxes on Goods and Services (Code des impositions sur les biens et services, CIBS), as amended from 1 January 2027 by Article 66 of Law No. 2026-103 of 19 February 2026; Articles 212 and 217 of Delegated Regulation (EU) 2015/2446 on temporary admission.

The same yacht can be taxed when it is bought, when it enters the EU, every year it stays under the French flag, and whenever it is chartered. This guide explains each tax, who pays it and where the usual mistakes lie, for buyers, sellers, brokers and foreign owners. For advice on a specific boat or transaction, you can speak to a yacht lawyer in France.

Note that from 1 January 2027 the VAT articles of the CGI are repealed and restated in Book II of the CIBS (Ordinance No. 2025-1247 of 17 December 2025 and Ordinance No. 2026-671 of 27 July 2026). The VAT references below are those in force in November 2026.

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VAT when you buy a yacht in France

A new boat from a French dealer

When a VAT-registered business sells you a boat in France, VAT is charged at the standard rate of 20% (Article 278 CGI), whatever the type of boat. A buyer who uses the boat for a genuine charter business may be able to recover it, under the conditions explained below.

Used boats: private sale, dealer sale and the margin scheme

For a used boat, the VAT treatment depends on who sells and how the boat was bought by the seller. A sale between two private individuals is outside the scope of VAT. A dealer who bought the boat from a private seller can apply the margin scheme: VAT is then due only on the difference between the dealer's selling price and purchase price (Article 297 A CGI). A dealer who sells a boat on which VAT was charged and deducted invoices VAT on the full price.

In every case, the buyer of a used boat should check its VAT status. A boat on which VAT was never properly paid in the EU carries that problem with it, and the risk passes to the new owner.

Buying a new boat in another EU country

The EU has a special rule for "new means of transport". A boat is a means of transport for this purpose if it is longer than 7.5 metres, and it is "new" if it is delivered within three months of its first entry into service or if it has sailed less than 100 hours (Article 298 sexies, III CGI). When a private buyer resident in France acquires such a boat from another EU country, VAT is due in France, not in the seller's country, and the seller's supply is exempt (Article 298 sexies, I and II CGI).

For a boat that is not "new" in this sense, a private buyer normally pays the VAT charged by the seller in the seller's country, if the seller is a business. The exact treatment also depends on who transports the boat. Check it before you sign, not after delivery.

Proof of VAT status (the "quitus fiscal")

French tax law provides for a tax certificate (certificat fiscal, often called "quitus fiscal") for certain intra-EU acquisitions of means of transport, including boats over 7.5 metres (Article 298 sexies, V bis CGI). Whatever the route, keep the documents that prove the boat's VAT status: the original invoice showing VAT, the customs import declaration, or the certificate issued when VAT was paid in France. Without them, proving that VAT has already been paid becomes difficult, for example when you sell the boat.

Importing a yacht from outside the EU: customs duty and import VAT

What you pay on import

A yacht imported into the EU from a non-EU country, the United Kingdom included, bears two charges, unless it is placed under a suspension regime such as temporary admission. The first is customs duty under the EU Common Customs Tariff. For sailing yachts between 7.5 and 24 metres, the duty on 6 November 2026 is 1.7% for the general sub-heading and 0% for the sub-heading for "seagoing" vessels (TARIC, codes 8903 22 90 and 8903 22 10). The classification of your boat therefore matters, and a trade agreement may also reduce the duty if the boat has preferential origin.

The second charge is import VAT at 20%. It is calculated on the customs value, plus the customs duty and other import taxes, plus incidental costs such as commission, transport and insurance up to the first place of destination in France (Article 292 CGI).

Monaco is not a third country for customs purposes. Its territory is part of the customs territory of the Union under Article 4(2)(a) of Regulation (EU) No 952/2013 (the Union Customs Code). A yacht arriving from Monaco is not imported into France.

Customs value

The customs value is in principle the price actually paid, but the French customs authority (douane) can challenge a price it considers too low. An independent valuation and a clean set of purchase documents help if the value is questioned.

Temporary admission for non-EU owners

Temporary admission (admission temporaire) allows a yacht to be used in EU waters without paying customs duty or import VAT, provided it is later taken out of the EU. For means of sea transport, the conditions are set by Article 212 of Delegated Regulation (EU) 2015/2446: the yacht must be registered outside the EU in the name of a person established outside the EU, and it must be used by a person established outside the EU. Persons established in the EU can use it only in the narrow cases to which Article 212 refers (Articles 214 to 216 of the same regulation).

For private use, the time limit is 18 months (Article 217(e)). For commercial use, the regime only covers the time needed for the transport operations (Article 217(b)). If the conditions are breached, for example because an EU resident uses the boat outside the permitted cases or the time limit is exceeded, the duty and VAT become due. These conditions should be reviewed with a lawyer before the boat enters EU waters, not when customs come on board.

VAT on yacht charter

For VAT, chartering a yacht, with or without crew, is the hire of a means of transport. A hire is "short-term" when the customer has continuous use of the boat for no more than 90 days. A short-term charter is taxable in France when the boat is actually put at the customer's disposal in France, wherever the owner or the customer is established (Article 259 A, 1° a CGI; from 1 January 2027, Articles L. 211-80 and L. 211-81 CIBS). A charter starting from a French port therefore bears French VAT.

The French tax authority's official guidance (BOFiP, BOI-TVA-CHAMP-20-50-30, § 40) accepts one adjustment: the share of the hire corresponding to the time the boat is actually used outside EU territorial waters is exempt. The charter company estimates that share on its own responsibility and must be able to prove it. Data from an automatic identification system (AIS) meeting SOLAS standards is presumed reliable. Without AIS, boats under 15 metres can rely on the charter contract or the logbook, with proof that the boat left French or EU territorial waters; boats of 15 metres or more need technical data showing the actual time spent outside those waters. This applies to contracts signed from 1 November 2020, and the old flat-rate reductions are no longer in the guidance.

The TAEMP: France's annual tax on pleasure yachts

Which boats and who pays

The TAEMP (taxe annuelle sur les engins maritimes à usage personnel) is set out in Articles L. 423-4 to L. 423-37 CIBS, in force since 1 January 2022. Many owners still call it by its former name, the DAFN. It applies to boats armed for personal use at sea. Boats armed for professional use, which hold a "permis d'armement" under Article L. 5232-1 of the French Transport Code, fall outside it (Articles L. 423-3 and L. 423-5 CIBS).

Until 31 December 2026, a boat is taxable if its hull is 7 metres or longer, or if its engines reach 22 administrative horsepower (CV). From 1 January 2027, the power threshold becomes 120 kW of propulsive power (Article L. 423-6 CIBS). Undecked boats mainly propelled by oars are outside the tax.

A boat under the French flag is taxable. A boat under a foreign flag is also taxable if its owner, or the person who has the use of it, is an individual whose main residence is in France, a company with its registered office in France, or a company controlled by such persons (Article L. 423-11 CIBS). The tax is due by the owner (Article L. 423-29) and, for a foreign-flagged boat, also by the person who has the use of it (Article L. 423-30).

How the tax is calculated from 1 January 2027

The tax is the sum of a hull term and an engine term. Until the end of 2026, the engine term uses administrative horsepower, calculated from cylinder capacity (Article L. 423-9 CIBS) and quite different from the horsepower in the engine brochure. From 2027, it uses propulsive power in kilowatts on a marginal scale, and it disappears for boats taxable only because of their length.

Two examples, on our reading of the new scale. A 12-metre sailing yacht built in 2010, with a diesel engine below 120 kW, will pay the hull term only: €470 in 2027. A 12.5-metre motor yacht built in 2015 with 250 kW of propulsive power will pay €470 for the hull plus an engine term of 159 x €3 + 91 x €4 = €841, so €1,311 in total. The first year of registration is reduced by one twelfth per full month elapsed (Article L. 423-17), and the tax is not collected if it is below €76 (Article L. 423-34).

Older boats, electric boats and exemptions

The reduction for older boats depends on a fixed construction date, not on the boat's age, and boats built from 1 January 2008 onwards get none. For 2026, boats built before 1993 get 80% off, 1993 to 1997 get 55% and 1998 to 2007 get 33% (Article L. 423-19 CIBS, repealed from 2027). From 2027, the hull and engine terms are reduced separately, as shown in the table.

Electric boats are not exempt. From 2027, a boat powered exclusively by electricity, hydrogen or both gets a 50% reduction on the engine term (Article L. 423-24-2). The only exemptions are for boats classified as historic monuments and, from 2027, those listed (inscrits) as historic monuments, and for boats holding the "bateau d'intérêt patrimonial" heritage label (Article L. 423-18 and Article D. 423-3 CIBS).

Large yachts and certain foreign flags

Yachts of 30 metres or more with at least 750 kW of propulsive power pay a separate flat tariff of between €30,000 and €200,000 a year, depending on length and power (Article L. 423-25 CIBS). The age and electric reductions do not apply to them. For a taxable boat flying the flag of a non-cooperative State or territory, or of a non-EU State that has no tax information exchange agreement with France, the tax is multiplied by three below 15 metres and by five from 15 metres (Article L. 423-20).

Assessment and payment

The TAEMP is assessed by the administration from the registration data, and the amount is made available to the owner online (Articles L. 423-32 and D. 423-6 CIBS). Payment is due by the last day of the second month after the month in which the tax is assessed (Article A. 423-9), by card or direct debit on the dedicated online portal (Article D. 423-10). Unpaid tax is recovered under the procedures of the CGI and the French Tax Procedures Code (Livre des procédures fiscales), and checks and penalties follow the Transport Code (Article L. 423-36 CIBS).

Owning a yacht through a company

Corporate tax: yacht costs are not deductible by default

Many owners consider holding the yacht through a company. French tax law is direct on this point: unless the company can justify them, the costs of buying, renting or maintaining yachts and pleasure boats, including depreciation, are excluded from deductible expenses (Article 39, 4 CGI). In practice, the justification is available where the boat is used for the company's own business, typically genuine charter, and not where the company simply holds the owner's private yacht.

Commercial use and VAT recovery

VAT on the purchase and running costs can be deducted only by a VAT-registered business that uses the yacht for taxed transactions, such as a real charter activity. The tax authority looks at the facts: weeks actually chartered, market prices, real marketing and the owner's private use. A boat chartered two weeks a year to friends at a friendly price is not used for an economic activity, and the deduction will be reversed with interest and, where applicable, penalties.

Flag choice for French residents

A foreign flag does not take a French resident out of the French tax system. The TAEMP follows the owner or user resident in France (Article L. 423-11 CIBS), with a multiplier for certain flags (Article L. 423-20), and temporary admission is not available to a boat used by a person established in the EU outside the narrow cases of Articles 214 to 216 of Delegated Regulation (EU) 2015/2446. The flag also has maritime and social consequences, to be reviewed with the owner's residence and plans for the boat in mind.

Wealth tax and reporting obligations

The yacht and the IFI

France's wealth tax is now limited to real estate (impôt sur la fortune immobilière, IFI). It applies to individuals and households whose taxable real estate exceeds €1,300,000 (Article 964 CGI). A yacht is not real estate and is not in the IFI base. Where shares in a company are held, they are taxed only for the fraction of their value that represents real estate held by the company (Article 965, 2° CGI). A yacht held by a company therefore does not increase the taxable fraction.

Foreign bank accounts

Individuals resident in France must declare, with their income tax return, the bank accounts they open, hold, use or close abroad (Article 1649 A CGI). This includes accounts used to run a yacht. The fine is €1,500 per undeclared account, raised to €10,000 where the account is in a State or territory that has no administrative assistance agreement with France giving access to banking information (Article 1736, IV, 2 CGI). Sums transferred through undeclared accounts are presumed to be taxable income unless proven otherwise (Article 1649 A CGI).

Rules that change: what to watch in 2027

• TAEMP reform on 1 January 2027: new hull rates, a kilowatt-based engine term, new age reductions and a 50% reduction for electric or hydrogen boats (Law No. 2026-103 of 19 February 2026, Article 66).
• VAT recodification on 1 January 2027: the VAT articles of the CGI move into Book II of the CIBS. Contracts, invoices and tax opinions that cite CGI articles should be updated.
• Administrative guidance: the BOFiP guidance on charter VAT refers to the CGI as it stood. Check whether it has been updated after the recodification before you rely on it for a 2027 season.
• Finance laws: the TAEMP was amended by the finance laws for 2025 and for 2026. Check the rates in force on the date the tax falls due.

Lawful planning: what holds up and what does not

There are no shortcuts in yacht taxation, only regimes with conditions and evidence requirements. A charter structure holds up if the activity is real, documented and priced at market rates, and if the owner's private use is limited and paid for. Temporary admission holds up if the owner and user are genuinely established outside the EU and the time limits are respected. The exemption for use outside EU waters holds up if the data prove it. When these conditions are not met, the bill comes later, with interest and penalties. Review the structure before the purchase, before the first charter and before the boat enters EU waters.

FAQ: yacht VAT and the TAEMP in France

How much is the TAEMP on a 12-metre sailing yacht?

For 2026, a 12-metre yacht pays a hull term of €458 plus an engine term based on administrative horsepower. A single four-stroke diesel of 2 litres gives 8 administrative CV (4.009 x 2.0, rounded down), so (8 - 5) x €14 = €42, and €500 in total if the boat was built in 2008 or later. From 2027, the same boat pays only the hull term of €470, because its engine is below 120 kW.

Can I recover the VAT when I buy a yacht?

Only if the buyer is a VAT-registered business that actually uses the yacht for taxed transactions, such as a genuine charter activity. VAT is not recoverable on a yacht used privately. The tax authority checks the reality of the activity and the share of private use.

I live in France. Does a foreign flag avoid French yacht taxes?

No. The TAEMP applies to foreign-flagged boats owned or used by French residents, multiplied by three or five for certain flags. Temporary admission is reserved for owners and users established outside the EU, and foreign bank accounts used for the yacht must be declared.

Is there an age discount on the TAEMP?

Only for boats built before 1 January 2008: 80%, 55% or 33% depending on the construction date in 2026. From 2027, the hull term keeps these rates and the engine term is reduced by 70%, 50% or 25%, except from 1,000 kW.

What happens if I do not pay the TAEMP?

The tax is assessed by the administration from the register data, so it does not go unnoticed. Unpaid amounts are recovered under the general tax recovery procedures, and checks and penalties follow the Transport Code (Article L. 423-36 CIBS).

Are electric boats exempt from the TAEMP?

No. Until 2026 an electric motor is converted into administrative horsepower like any other engine. From 2027, a boat powered exclusively by electricity or hydrogen gets a 50% reduction on the engine term only. The hull term remains due.

Do I pay French VAT on a yacht charter that starts in France?

Yes, for a charter of up to 90 days where the boat is handed over in France. The share corresponding to actual use outside EU territorial waters can be exempt, provided the charter company can prove it, for instance with AIS data.

Yacht taxes are rarely a problem when they are planned, and often a serious one when they are discovered during an inspection or a resale. If you are buying, selling, importing or chartering a yacht, a yacht lawyer in France can check the VAT status of the boat and the structure before you commit.

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