super yacht fractional ownership

• Yachting for beginners
• Owning a yacht
• Motor Yachts
• Sailing Yacht
• Indian Ocean
• Mediterranean
• Buying or Selling a Yacht
• Yachting Events
• FAQ – Luxury Yacht Charter
• FAQ – Buying a Yacht
• FAQ – Sell your Yacht
• How Much Does It Cost To Charter A Luxury Yacht?
• All our Blog Post & News

Fractional Yacht Ownership : Everything you Need to Know

Fractional yacht ownership is one of the way to own a yacht that might suit your needs.

For most people, owning a luxury yacht means the freedom to move whenever and wherever they want with maximum comfort. However, it is rare to be able to use it 100% of the time. There are options to counteract the time the boat is not is used, and one of the most profitable and comfortable is fractional ownership.

Shared yacht ownership may be for you. But do you know exactly what it means and entails?

Let’s review the pros and cons of this ownership method to assess whether this can suit you, or whether you should continue chartering yachts or owning one fully .

What is fractional yacht ownership?

Fractional boat ownership is exactly what it sounds like. It allows you to own a part of a yacht for usage time on board. You legally own a piece of it as an asset, and like a company share or a bond, you can sell or transfer it. 

People have been sharing boats through informal partnerships with friends or family members for eons. Fractional boat ownership is simply a formalization of these arrangements which offers you more legal protection in case of conflicts. 

Each owner pays an equity stake in the vessel depending on what percentage of the purchase they want. 

In return, each owner is allotted a set number of days they are allowed to use the boat each year proportionally to their investment. 

On top of the share, the owners have to pay an annual maintenance fee to the management company taking care of managing the calendar, crew, and maintenance of the boat throughout the year.

Fractional boat ownership is different from a time-share which only gives you the rights of property used for a certain amount of time. Once your time is over, your investment also is.

To help you to decide if fractional yacht ownership is right for you, here are the pros and cons you might consider.

The Pros of fractional yacht ownership

By sharing the purchase price, but also the operating and maintenance costs between the owners, fractional boat ownership lightens your investment considerably, allowing you to make serious savings. Financially, but not only.

Fractional boat ownership will also help you to save time on managing different aspects. Indeed, the management company will take care of it – from hiring a crew to coordinating maintenance, to managing the calendar among all owners, to deal with marinas. If you don’t use the yacht, the management company will help you to charter it.

When you use your time aboard, you are free to invite anyone you want. This kind of program is often located in an area, but with the majority of other owner’s agreements, you can cruise the boat in new locations.

If you no longer wish to own a fraction of the yacht, most fractional ownership agreements allow you to easily sell your fractional shares to someone else. Since this kind of program keeps the yachts well-maintained, the value of your share will not devalue so quickly and you’ll be able to more easily change boats than with full ownership.

Furthermore, some fractional ownership organizations maintain fleets that allow you to use a different yacht, enjoy another location, or make up for time lost because of weather or maintenance issues. 

The Cons of fractional yacht ownership

The main drawback of fractional yacht ownership is obviously that you have to share your boat with other owners

Some downsides include that even if you own a part of the yacht, you can’t do whatever you want with it. For example, You can’t personalize a fractionally owned yacht. In fact, you probably won’t have a say on the outfitting or the decoration at all.

You don’t have a lot of flexibility either to use your yacht whenever you want. The yacht isn’t at your disposal all the time and itineraries are planned in a way that you choose your slot in advance. Your last-minute getaways are therefore compromised. 

It also means that the boat might not be available for the particular dates you would like to use it. Read properly the agreement, as some of them allow first come – first served during the unscheduled time if no maintenance is required.

When it comes to moving the yacht, most of the owners have to agree on the destination, so you can be stuck with one area, which can be an issue if you are planning on moving a lot. To relocate your yacht for an extended period of time, you will usually need every owner’s approval. 

On the other hand, most owners may decide to move the boat to an area you don’t particularly like. If you were to charter a boat, you would simply pay a moving fee, but in this case, you are stuck!

Depending on the contract, it is possible that if the majority of the owners want to sell the ship, it can get sold out from under you. So read it carefully!

In fact, the main disadvantage of fractional yacht ownership lies in its name: you only own a portion of the yacht, which means you are not in full control of your property.

Is Fractional yacht ownership for you?

To know  if fractional boat ownership is for you or not, answer these different questions:

• Is it important for you to be in total control of your yacht?
• Do you have time and funds to deal with your yacht’s maintenance costs?
• Are you planning to sail in one area or to explore the world?
• Is having a customized yacht important to you?
• Are you flexible on dates?

Depending on your answers, fractional yacht ownership can be, or not a good option for you.  If you want to save on costs, if you are likely to use it several times throughout the year in one particular region, if you know which boat you want or if you want to invest in a yacht to charter it, then go for shared boat ownership.

For people who don’t want to deal with the hassles of single-ownership, it is also a solution to consider.

On the other hand, people who like changes, whether it’s to try out numerous yachts or to change regions often, are better off sticking with yacht chartering.

For those who don’t want to share and can’t stand the idea of being a co-owner, buying your boat is likely your best option if you can afford it. 

Keep in mind that most fractional yacht ownership programs concern large yachts, like superyachts and mega yachts which require crew. If you enjoy captaining your boat and your friends and family enjoy being the crew, you may lose that aspect of yachting in some way.

The costs of Fractional yacht ownership

You pay your share at the beginning to purchase your portion of the yacht. 

There are no traditional yacht ownership expenses in fractional ownership programs like dockage, moorings, insurance, or boat maintenance costs. But depending on the program you go for, either you will have to pay a certain amount every year to the management company or it will be covered by the charter revenues or a mix of both.

As an example, for a 63-foot yacht with four cabins, some programs offer the cost of the eighth share in the Mediterranean around $180,000 with annual costs for maintenance, crew, insurance, and anchorage around $24,000. Owners will be able to use the boat 4 weeks a year. Another management company offers a California program from $300,000 to $735,000 plus operating costs for quarter shares of vessels ranging from 52 to 82 feet. At this price, the four owners will each be able to use the boat 72 days a year.

The main regions in the world for fractional yacht ownership

Fractional yacht ownership can be done everywhere. 

Popular destinations include Europe, in particular, the Mediterranean and the Caribbean, especially the Bahamas.

Among the main regions in the US for fractional boat ownership, you have Miami and Fort Lauderdale, but also Cape Cod and Nantucket.

Some programs also offer Asian destinations mostly in Hong Kong, Thailand, and the rest of South-East Asia.

Read also : Sustainable Yachting: How is the Boat Industry Becoming more Eco-Friendly?

About to buy a yacht?

Were you thinking about Fractional Yacht Ownership? Our professionals will be happy to help you in your endeavors.

Fractional yacht ownership means that you legally own a portion of a yacht, along with co-owners. Therefore you are entitled to use the yacht based on your ownership agreement and must share revenues and costs with other owners.

It depends on your desires and your personality. If you like changes, try out a different yacht model every year and change frequently of destination, then go for yacht chartering. If, on the contrary, you have a crush on a yacht, want to start owning it at a lower cost, and avoid the management requirements, fractional boat ownership is ideal. Unlike chartering, fractional ownership means you can invite as many guests as deemed safe and as long as you have proper safety equipment on board.

The costs include the purchase price of your ownership share and yearly exploitation and maintenance fees to pay to your management company.

Hard to tell. This depends on your availability if you have time or not to take care of your boat, and your budget. If you don’t want to worry about the management aspects and only have a small budget to invest, go for fractional ownership. If you want to have perfect freedom, use your boat anytime and wherever you want, go for full ownership.

Yes, you can. As long as the share belongs to you, you can sell it whenever you want as long as the agreement doesn’t stipulate anything against it. Be aware that the other owners can also do so.

The most popular regions for fractional ownership are the Mediterranean and the Caribbean. But also, the US and some Asian areas.

You can buy a fraction, or a share, of a yacht. You will be the co-owner, or the fractional owner of the yacht and its cost will be spread among all owners.

Yes, fractional ownership and yacht sharing or even co-ownership are all synonyms. You still become the co-owner of a yacht regardless of how you decide to call it.

A yacht sharing program allows you to co-own a yacht, so that you spread its maintenance cost among all owners. It is also known as fractional ownership or co-ownership programs.

The best James Bond Boats and Yachts (2024 update)

Yacht crew positions : hierarchy, missions & salaries explained, you might also like.

What differentiates a yacht from a superyacht or a mega yacht?

Chartering Requirements and Regulations: A Guide for Boat Owners

What are the Fastest Cruising Catamaran on the Market?

• (954) 633-4878
• [email protected]

Compass Articles

• February 17, 2024

Fractional Yacht Ownership: Everything You Need to Know

Thinking about getting into yachting but worried about the cost and hassle? There’s an option you might not have considered: fractional yacht ownership. This guide will explain what it is, how it works, and why it could be a great choice for you.

What is Fractional Yacht Ownership?

Fractional yacht ownership means you share the cost and access to a yacht with other people. Instead of buying a whole yacht by yourself (which can be pretty expensive and a lot to look after), you own a part of it. It’s like owning a slice of the pie. You get to enjoy the yacht for certain times of the year without dealing with all the headaches of full ownership.

• Saves Money : Sharing the costs means you spend less money but still get the luxury experience.
• Less Work for You : There’s a company that takes care of maintenance and everything else. You just show up and enjoy.
• More Options : You’re not stuck with one yacht or place. You can try different yachts and locations over time.

How Does It Work?

Fractional yacht ownership isn’t complicated. Here’s a quick rundown of how most people do it.

Choosing a Program

There are lots of different options out there, so you’ll want to find one that fits what you’re looking for in terms of yacht type, location, and how often you’d like to use it.

The Agreement

You and the other owners sign a contract that spells out everything important, like who gets the yacht when and who pays for what. This helps keep everyone on the same page.

Time to Sail

You book your time on the yacht based on the system the managing company sets up. It’s designed to be fair so everyone gets their turn without any fuss.

Why Consider Fractional Yacht Ownership?

Here are some of the big reasons people like fractional yacht ownership:

• It’s Affordable : You get the luxury yacht experience without the full cost.
• It’s Easy : The managing company handles the hard stuff. You enjoy the sail.
• You Have Choices : Try different yachts and visit different places without being tied down.
• Meet New People : You’ll be part of a community of yacht owners. Great for networking and making friends.

Is It Right for You?

If you love the idea of sailing on a yacht but don’t want to deal with all the expenses and hassle, fractional ownership could be perfect. It’s all about whether you want the perks of yacht life without the full commitment of owning one outright.

• Ideal for people who want to sail part-time.
• Great if you love trying new experiences and locations.

In the end, if getting onto the water in a hassle-free, cost-effective way sounds good to you, it might be worth looking into more. And if you’re looking for a trusted partner in your yacht ownership journey, Fly Yachts is here to help. We know the ins and outs of fractional ownership and can guide you through the process, making sure you find the right fit for your sailing dreams.

Fly Yachts offers everything for those interested in yachts, from buying and selling to planning a yacht trip. If you’re looking to buy a yacht, theirs  Yachts for Sale  page lists numerous luxury options. For custom yacht enthusiasts, the  Build a Yacht  page details how you can create your dream yacht. Sellers will find the  Sell Your Yacht  page helpful for navigating the sales process. For those dreaming of a yacht vacation, check out yacht rental choices on the  Yachts Charter  page and discover beautiful travel spots on the  Charter Destinations  page. Learn about Fly Yachts’ experience and services by visiting the  About Us  page. The  Compass Articles  page is great for reading up on yachting topics. Aviation fans might be interested in the luxury  Aircraft for Sale . For the latest yachting updates, swing by the  Gulfstream News  page. To get in touch or for more inquiries, the  Contact  page has all the details, or you can simply dive into their  Homepage  to see all that Fly Yachts has to offer.

About FLY Yachts

Unmatched Industry Knowledge, Paired With Brokers Who Care Equals Yachting You Love.

Recent Posts

Experience the ultimate luxury and modernity with cobalt boats r6 outboard, the cobalt boats cs23: a modern boat with ultimate luxury.

672 Wine Club

• Motorcycles
• Car of the Month
• Destinations
• Men’s Fashion
• Watch Collector
• Art & Collectibles
• Vacation Homes
• Celebrity Homes
• New Construction
• Home Design
• Electronics
• Fine Dining
• Benchmark Wines
• Brian Fox Art
• Chase United
• Disneyland Resort
• Gateway Bronco
• Royal Salute
• Sports & Leisure
• Health & Wellness
• Best of the Best
• The Ultimate Gift Guide

Own a Superyacht for a Fraction of the Cost

Avyachts’ new fractional program represents an alternative to the hefty costs of sole superyacht ownership and the unpredictable experiences of chartering., michael verdon, michael verdon's most recent stories, new zealand’s thrilling win gets the america’s cup off to a rip-roaring start.

• Jeff Bezos May Be the Owner of a New $80 Million Gulfstream Jet

Rescuers Find Remaining Missing Aboard the Sunken ‘Bayesian’ Superyacht 

• Share This Article

Want to own a new superyacht at a fraction of the cost of the same boat at the other end of the dock? A new yacht company in Fort Lauderdale is applying features of fractional ownership programs to the superyacht world. Like NetJets and Flexjet have done for business aviation, AvYachts plans to make yacht ownership much less costly while also providing an alternative to the often erratic standards of the yacht charter market. The company is targeting both experienced yachties and those who know nothing about superyachts, other than seeing themselves and their loved ones aboard their own vessel in the world’s most beautiful waters, being waited on hand and foot by their own crew.

Related Stories

• Tiffin’s New Off-Road Camper Van Delivers All the Comfort of an RV in a Compact Package

This Speedy 70-Foot Power Catamaran Is Designed to Cut Through Rough Waters

• SpaceX’s Falcon 9 Rocket Has Been Grounded (Again) After a Booster Explodes

“We’ve set up a very flexible, comprehensive program so that our owners don’t have to deal with crew issues, maintenance, or managing the yacht,” says Kathy Kennedy, AvYachts ’ chief operating officer. “They simply pay a fee and enjoy the best of owning a yacht without the hassles. We’ve designed the program to be simple, transparent, and cost-effective.”

Like business aviation, owners purchase shares in a superyacht so that they are partial owners. Typically, the owners will buy a 20-percent stake that gives them full access six weeks each year for a five-year ownership period, but AvYachts said it is willing to sell a 10-percent stake (for three weeks) or even make other arrangements with potential owners. That, says Kennedy, allows them to enjoy yacht ownership during the five-year contract, and see a return on the investment when the yacht is eventually sold.

The company currently has a Westport 112 as the first boat in its fleet and is acquiring several Westport 130s, mainly because owners have requested the larger models. AvYachts chose Westport because of the benefits that partnering with North America’s largest superyacht builder offers. “We know they will be there if anything happens to the yacht or its engines,” says Kennedy. “We wanted the most stable and reliable provider for our clients.”

AvYachts is starting with a Westport 112 superyacht.  Photo: Courtesy AvYachts

According to the sales schedule, a 20-percent stake in the Westport 112 would cost $1,780,000, as opposed to buying it outright for $8,900,000. The residual value that an owner should receive after five years is $1,380,000. AvYachts takes care of weekly scheduling, maintenance, payment, and rotation of the five-person crew, and other issues that have to do with yacht ownership. Owners pay for any incidentals or costs associated with stocking special foods or drinks during their charters. AvYachts estimates that total annual costs (including crew, maintenance, and operating costs) would be about $340,000 for owners spending six weeks aboard the yacht. Compared to chartering, that could be much less expensive than chartering a yacht of the same size, depending on the charter vessel’s age, brand, and location.

Ultimately, AvYachts plans to base yachts in Monaco and New England for summer charters, and another in Florida for winter charters to the Keys or Bahamas . “Owners will be able to move between the yachts so they can experience different locations,” says Kennedy. “The idea is to mix up the charter destinations while creating a consistent, first-class owner experience.”

AvYachts has also recently partnered with Elite Alliance, a provider of exchange services for luxury vacation homes. Under the agreement, AvYachts owners can exchange a week aboard the yacht for three weeks at a luxury villa or any other Elite Alliance property around the world. “We decided to open it up to other luxury opportunities,” says Kennedy. “Again, the idea behind the program is to be as flexible and transparent as we possibly can, so the owners will make the most of the experience.”

Read More On:

• Fort Lauderdale
• fractional ownership
• New England
• Westport Yachts

More Marine

This Revamped 161-Foot Trinity Superyacht Could Be Yours for $16 Million

Meet the Wine Club That Thinks Differently.

Receive editor-curated reds from boutique California producers four times a year.

Give the Gift of Luxury

Latest Galleries in Marine

10 Must-Haves That Will Make Your Yacht Trip Even Better

6 Electric Surfboards That’ll Help You Ride the New E-Foil Wave

More from our brands, victoria’s secret fashion show 2024 models casting announcements, live updates: tyra banks, gigi hadid and more, chinese tennis star zheng qinwen has ‘yao ming’ u.s. marketing potential, ‘september 5’ review: taut media-critical control-room drama reveals how a hostage crisis forever changed tv news, a long night out during art basel yields run-ins with collectors, celebs, and art world power brokers, the best yoga mats for any practice, according to instructors.

Yacht Share Network

Yacht Share Network – as featured in the Sunday Times – is the world’s largest yacht brokerage dedicated to co-owned yachts representing over 200 yachts in the best global boating hotspots.

We are purposefully not tied to any particular yacht brand as we recognise that our range of differing yachts from all the leading brands offers potential co-owners much more choice, which simultaneously translates to more competitive offerings.

HOW IT WORKS

Fractional yachting, jet share network, featured yachts, prestige 750 fly, sunseeker 88, riva 90 argo – monaco, pearl 62 – puerto portals – mallorca, pearl 95 – balearics & western med, azimut 26m grande, the world's largest yacht share brokerage.

We have 3 teenage lads, and they just didn’t want to come on holiday with us anymore. However, once there was a yacht on offer that suddenly changed. Now they love to come along and we have wonderful family times together. The boys are great company and we have created lots and lots of new family memories that will remain with us forever.

The yacht share idea always appealed to us, finding a professional and reliable syndicate was harder. I am happy to vouch for Yacht Share Network, they are truly the masters of the universe and make it work incredibly well.

Boating was never my dream however it was my husband Robert’s ultimate goal in life. Sharing meant we managed to achieve a of this and more with a fraction of the cost. We could still take the children skiing and do all the other things a busy family wants to do. When you see your 7 year old swimming in the sea and in the tender shouting faster whilst laughing and screaming you know that holidays are back to being magical. This has been the making of us as a family thank you so much.

I’ve known William for many years and he knew that our boat sat empty in Cannes for most of the time. He suggested we sell some shares instead of just burning cash on moorings and maintenance. Yacht Share Network took her into their fleet and we got ¾ of our capital back. Now we just have ¼ of the running costs, and don’t feel so guilty that we only use the boat about 6 weeks of the year.

I have to admit, I probably love boating more than my wife does so buying a boat was unlikely to ever happen. A boat share however… I got the boss to approve, and a happy wife is a happy life lol!

Our best deals

Aquilla 44 – miami/bahamas winter & hamptons/newport/nantucket summer, princess 62 – puerto portals, princess 64, 2005 sunseeker manhattan 50, azimut 60 – miami, how it works, fractional yacht ownership.

© 2024 The Yacht Share Network. All Rights Reserved Terms of Use and Privacy Policy

Enquire Now

First Name*

Your e-mail*

Phone Number* (please include country code)

Boating Experience

We use a third party provider, to deliver our monthly e-newsletter. We gather statistics around email opening and clicks using industry standard technologies including clear gifs to help us monitor and improve our e-newsletter. For more information, please see our privacy notice.

Superyachting for a fraction of the cost

Fractional ownership schemes are well-known both in the private jet and the holiday residence spheres, and new schemes in the superyacht sector are opening the doors to new owners while adding an element of environmental responsibility.

“I’ve learned that there are two misleading words in this industry – one of them is ‘super’ and the other is ‘yacht’,” tech entrepreneur Jasper Smith told Superyacht Life early in 2021 . “From the public’s perception, it can look elitist and a bit bling.” As a young man, Smith – a keen sailor – had jumped in a boat and sailed from Australia to Alaska via Kamchatka. He climbed mountains along the way, defining what experiential yachting meant 20 years before it became a trend. He went on to own sailing boats, taking his family to far flung destinations and introducing his children to the yachting lifestyle.

The downside to this dream scenario were the months his boat sat in a marina unused, requiring maintenance and costing money. To mitigate costs, Smith decided to share ownership of a boat with a group of friends. It was his first foray into fractional ownership and would prove to be the nucleus of his marine adventure company Arksen , and its Adventure Syndicate .

Jasper Smith

Fractional ownership is not a new concept on land – one only has to think of the ubiquitous timeshare holiday homes dotted all over the world – or in the air, where companies such as NetJets and Flexjet are but two well-known examples. Even in superyachting there have been a few ventures into the concept. Floating Life back in 2007, for example, led the way with the YachtPlus fractional plan for a series of 41-metre yachts designed by iconic land-based architects Foster + Partners, and is currently working on a new fleet of 43-metre fractional ownership yachts.

Others, too, are making strides in this developing area of the market, which provides the luxury and privacy of the superyachting experience at a greatly reduced cost to outright ownership – which in turn opens superyachting to a far wider community of potential clients. There are schemes available with SeaNet Europe , for instance, or AvYachts , which offers typically a 20 per cent stake in a vessel in return for a guaranteed six weeks on board per annum for five years.

Fractional ownership is also a neat fit for the post-Covid rise in demand for yachts, and indeed the first model in Smith’s Arksen 85 range, currently in build at Wights Shipyard in the UK, has been bought by a syndicate of experienced yacht owners who are moving up in size. But there is a lot more to Arksen’s proposition than just offering a floating timeshare, and it speaks to the sensibilities of a new generation of ocean users.

Arksen 85 Tropical

With naval architecture by Humphreys Yacht Design, the all-aluminium explorer is robust enough to operate in areas where there may be ice yet compact enough to classify as a small commercial vessel. It has a 7,000 nautical mile range for remote autonomy, two high-capacity watermakers to generate its own drinking water, and a high-capacity sewage treatment system for operating off grid in environmentally sensitive areas.

“I see the boat as a floating expedition base camp,” says one of the first syndicate owners. “I’m a climber and skier turned sailor, so I am excited about the opportunities for alpine missions delivered from our oceanic mountain hut!”

The Arksen proposition also encompasses the Sea Time Pledge , whereby owners are encouraged to donate a portion of their vessels’ annual sea time to scientific research or educational projects. “The fact that we have committed 10 per cent of the boat’s time to these important projects is great,” says the owner. “It allows the kids to be involved in finding solutions to some of our most pressing issues and for the community to share knowledge.”

Photo: Floating Life

Syndicate owners collaboratively decide on layout, interior design and water toys. One of the most important decisions is agreeing on the four-year cruising itinerary, which is based on the syndicate’s pre-selected cruising area. Boat one chose Global – the other options being the Americas, Asia or Europe – and its 2022 maiden voyage will take in a UK circumnavigation, exploring some of Scotland’s far flung outposts, including Sula Sgeir, North Rona, Sule Skerry and St Kilda.

“We’re cruising from Southampton to Shetland – hopefully taking in the Faroe Islands – and exploring the ‘roof of Scotland’. I’m longing to make a landing on Rockall, which will be a test for the crew, the vessel and my amphibious scrambling skills,” the owner says.

In its first year, the boat will have its capabilities tested in a variety of environments from the backcountry of east Greenland and the Scoresby Sound Fjord system to Caribbean sun and sand. The syndicate also has Finland, Sweden, Norway and Svalbard in its sights, as well as Med-lounging for summer – all seamlessly arranged by Arksen’s concierge arm, the Explorers’ Club.

“It might sound odd for a cutting-edge explorer, but I can’t wait to hit the Med. I love the culture and pace of life. We’re looking forward to exploring Sardinia and Corsica, and visiting friends for more freediving lessons in Greece,” says the owner. “That said, I think the jewel in the crown for explorer yachting must be the Antarctic and I’ve never been, so I cannot wait to head across the Drake Passage for a cruise of the peninsula, seeking out some ski mountaineering routes and visiting some of the old BAS bases.”  

Photo: Arksen

Alongside downtime and family adventures, the owners will welcome a mix of scientific expeditions. Arksen is a founding partner of the Yachts For Science initiative, which matchmakes owners’ vessels with the marine research community. Projects range from collecting data on deep scattering layers, tagging Mediterranean white sharks and monitoring sargassum to gathering marine environment data for the open source ocean data portal OcToPUS.

“We have a raft of scientific programs we’re trying to fit in with our itinerary, which are all vetted by Dr Lucy Woodall at Oxford University,” the owner says. “We have scientists interested in coming onboard to track and study the ‘Type C’ orca population in Antarctica and the Southern Ocean, which would be fascinating to be involved with.”

Arksen’s aim is to create the world’s largest privately owned research-capable fleet that has sustainability at the fore of design and construction and gifts owners the freedom to enjoy their assets to the full. Every Arksen is built in recyclable aluminium, has the option of a serial hybrid drive system, solar panels fitted to reduce the amount of generator run time, and an optimized hull that requires less power, therefore less fuel, therefore less emissions . 

“Exploration means different things to different people,” the owner concludes. “For me, it’s skiing, climbing and voyaging in great company, and the 85 can carry all we need to fulfil my ambitions – equipment, my friends and family, and a good cellar and larder to keep them all happy!” It’s clear that with fractional ownership schemes the traditional barriers to yacht ownership, kinship and the joy that the superyacht life can bring are coming down – and the desire of new owners to take  positive actions on saving the oceans is going up.

You may also like...

The pursuit of Excellence

For Boston-based businessman Herb Chambers, building a superyacht is just as enjoyable as enjoying the finished product.

Six of the best... family-friendly yachting destinations

From kayaking in Norway to turtle tagging in The Bahamas, there’s a perfect superyacht destination for every family.

The allure of superyacht charter

If you’ve never experienced it before, it can be hard to grasp why some people choose a yacht over a hotel, but for one first-time charterer a five-day cruise in Croatia proved a real eye-opener.

Do you work in the superyacht industry? Yes No I would like to receive updates from Superyacht Life

Don’t miss out

Sign up to our newsletter and get our latest stories delivered monthly to your inbox.

Enjoy Unforgettable Vacations With Fractional Yacht Ownership

Incredible adventures await with our yacht timeshare program, monocle's fractional program is reshaping the yachting world, affordable yacht ownership is a smart lifestyle investment, experience unparalleled value with monocle yachts, yachting is the ultimate luxury vacation – monocle’s fractional yacht ownership program is unparalleled.

Industry-Leader Monocle is Transforming the World of Yachting through Fractional Ownership. Making Yachting Highly Affordable & Saving Owners Millions.

Attention Cruise Ship Travelers:

Cruise the Mediterranean this summer on your own private yacht for less than a charter cost. Why risk your family’s health traveling with thousands of strangers when now is the perfect time to safely cruise on a private yacht at a fraction of the cost. Monocle Fractional Yachts invites you to a one-week trial cruise with your own private crew ensuring an amazing, relaxing and safe vacation. Don’t miss out, call us today! 954-563-5808

"The Absolute Best Value in Yachting"

3 stateroom example       4 stateroom example.

Our Concept in a Nutshell

The Monocle Fleet

The Monocle Advantage

• Frequently Asked Questions

WHAT'S NEW AT MONOCLE?

Monocle Worldwide

Yacht Lifestyle

Your yachting vacation is not just about seeing new horizons, vistas, landscapes and seascapes. It is about witnessing glorious sunrises, magnificent sunsets and conversing happily over dinner under the stars with loved ones aboard your own private yacht. With no intrusions from the outside world, you and your family can reconnect enjoying fun filled days swimming, snorkeling and jet skiing in a secluded bay. You can explore beaches or immerse yourself in the local lifestyle creating a family vacation filled with unforgettable moments and a lifetime of loving memories. Monocle’s Fractional yacht program affords you the incredible opportunity to share precious private time with your family and friends in the most luxurious and enchanting settings.

Monocle is headquartered in Fort Lauderdale, Florida; however, our program is global.  The most popular destinations for our fractional yacht program are the Bahamas, Caribbean, the Mediterranean & the American northeast in areas such as Maine, Cape Cod & Nantucket.

2024 © Monocle Yachts Worldwide LLC. ALL Rights Reserved   ·   (954) 563-5808

Yacht Fractional Ownership

Acquiring a yacht is one of the most special investments one can make. Yachts unlock dreams made of holidays in exclusive creeks worldwide, distant from the hustle and bustle of crowded resorts and close to secluded and exclusive beaches and rivieras. Yachts are also a tool to signify one’s social position. Notwithstanding this, like any other investment, it requires careful planning to minimise inefficiencies and consequently reduce costs. Contrary to other assets, such as immovables, whose value increases with time, yachts tend to depreciate quickly and are subject to high maintenance costs. For this reason, yacht owners aim to mitigate this financial burden. To mitigate such risks and offset, even partially, the investment made, owners tend to opt for mixed-use of the yacht by chartering her to third parties. Although this is a possible solution, there are also some negative aspects connected with yacht chartering:

• Impossibility of using her during peak season
• Use of yacht by third parties who might not treat her as their own to the detriment of her value
• Yachts would generally need to be stationed in the same part of the world to minimise relocation costs
• Engagement of third-party advisors and fiscal representatives to assist with VAT and other related tax compliance matters
• Increase in insurance costs related to the commercial use of yachts
• Increase maintenance and refit costs to ensure the yacht could be registered as commercial and be compliant with the commercial yacht code

Chartering, however, is not the only option to recover costs related to acquiring the yacht. In fact, over the last few years, fractional ownership has proven to be a valid alternative to chartering.

How does fractional ownership work?

Yacht fractional owners own a share or portion of a yacht jointly with other persons who can use the same depending on the terms and conditions of the ownership agreement between all parties. Contrary to a time-sharing arrangement, which grants a right of use only for a limited period, fractional ownership gives a title of ownership (although in common with other persons) and a return of price in case of sale to third parties.  Fractional owners could either acquire a share in the yacht directly or indirectly through the setting up, together with other persons, of a company that will be the yacht’s registered owner. The latter option could provide direct and indirect tax efficiencies if adequately structured. Fractional ownership allows owners to use the yacht for a maximum period, which generally varies between 3 and 6 weeks. Fractional owners are also entitled to charter or sub-lease the yacht to third parties during the period assigned to them or sell their share should they not be interested in the continued enjoyment of the asset. Maltese law also allows the possibility of setting up shipping cell companies where the patrimony of each cell is separate and distinct from other cells, thus giving the shareholder an additional layer of protection and flexibility in structuring their ownership as the fractional right would be assigned to the cell.

Who should opt for fractional ownership?

People who know from the outset they will only be using the yacht for a few weeks a year and want to avoid dealing with third-party operators such brokers, marina agents, seafarers, and tax advisors would do well to consider opting for a  fractional ownership arrangement. These functions would be delegated to a yacht manager by paying a yacht management fee. Such a manager would be in charge of dealing with third parties concerning all of the above matters.

Fractional ownership is a formal arrangement meant to regulate the fractional use of yachts amongst more people by giving certainty on the rules to be adopted and avoided or at least reducing conflicts with service providers and between the fractional owners.

How is the amount of time used decided?

This depends on and is usually proportionate to, the investment made in the yacht.

What are the benefits of fractional ownership?

• Financial: one significantly saves the total purchase price by acquiring a portion of the yacht.
• Saving Time: time spent coordinating the yacht’s management, maintenance, crew employment-related matters, berthing, insurance, and fiscal issues, amongst others.
• It is easier to dispose of the interest in the asset.
• Possibility to change yachts should the fractional owner not be interested in that model. Some fractional ownership organisations even maintain fleets based in different geographical locations.

What are the disadvantages of fractional ownership?

• Sharing the yacht with other people, the impossibility to personalise the yacht and choose particular crew members.
• Use of the yacht is possible during specific periods only and restricted to particular geographical locations. Suppose the yacht is always based in the Mediterranean. In that case, a user cannot decide unilaterally to move her to the Caribbean to return to the Med region again unless most owners (based on a contract of use) choose otherwise.
• The yacht might be unavailable during certain parts of the year if already booked by other fractional owners or under maintenance.

What are the VAT implications, if any, for fractional ownership?

Regarding the EU VAT legislation, supplies of goods or of services made by a taxable person acting as such in return for consideration within the territory of a Member State are subject to VAT unless specifically exempted. As such, transactions that cumulatively meet these conditions are said to fall within the scope of EU VAT, whilst transactions that fail to meet any of the requirements are classified as falling outside the scope of EU VAT, which is to be disregarded for VAT purposes. A transaction deemed to fall within the scope of VAT has then to be methodically analysed to determine its correct VAT treatment, most significant, where it is to be taxed, whether an exemption applies and if not, who would be the person liable to pay the VAT to the tax authority. It is in the background of these concepts, that the numerous transactions contained in fractional ownership, from ownership to management, need to be assessed to establish the appropriate VAT treatment and resulting implications.

As a point of departure, ownership, per se, even if partial and undivided, does not render the owner a taxable person for VAT purposes unless he carries out an economic activity. In the fractional ownership set-up, the owners would not be carrying out an economic activity since each would be using the asset (the yacht) privately. Selling a fractional share would likewise fall outside the scope of EU VAT since the seller (the fractional owner) is not a taxable person for VAT purposes in that he is not in the business of selling or trading in shares in yacht ownership, that is, not carrying out an economic activity. The yacht’s purchase, management fees, operational and maintenance services necessary for the functionality and upkeep of the yacht all appear to be supplies of services subject to VAT. As a rule, the VAT incurred by the management company will be deductible to the extent that it is attributable to its taxable supplies, namely the management fees and recharges claimed from the owners in proportion to their fractional share. The owners, however, have no right of deduction, and the VAT incurred should constitute an irrecoverable cost. Given that in the fractional ownership model, expenses are shared; the VAT cost would thus be less burdensome when compared to full ownership of a yacht.

How do you understand if fractional ownership is the right solution for you?

Fractional owners need to understand if they want the yacht exclusively for themselves or not and whether they are willing to share it with strangers and be able to use it only for specific parts of the year.

On the other hand, all those aspects concerning her maintenance would be delegated to third parties, thus rendering matters easier for the end user. Lastly, fractional ownership would permit the benefit of a yacht at a reduced price, and if one uses a yacht for a few weeks a year, savings would be much higher than the ones made under a charter option.

Charles Vella

Vat advisor, full name *, your company *, email address *, phone number *.

Please leave this field empty. I consent to Zampa Debattista storing my personal data provided for the sole purpose of responding to my enquiry and administering my request, as defined within the privacy policy .

Send Sending..

Previous Post VAT Newsletter Q3 2023

Next post vat grouping – igaming industry.

Comments are closed.

• Student Hub
• Audit & Assurance
• Corporate Services
• Digital Consulting
• Financial Reporting
• Internal Audit

Quick Links

• Get in touch
• Privacy Policy

© 2024 Zampa Debattista.

crafted by BRND WGN

• History & Values
• ESG & Sustainability
• Meet the Team
• Engagements
• Engagement Quality
• ACCA Programme
• University Programme
• Internship Programme

How Does Fractional Yacht Ownership Work?

All of the fun, at a fraction of the price..

Being on the ocean in your very own luxury yacht is an enchanting feeling, one of freedom from daily stresses and an indulgence in your own desires. Much like other recreations, however, boating comes with its share of preparation, continuous upkeep, and unexpected expenses that can sometimes hinder your plans. Chartering a yacht allows you to enjoy the boating lifestyle without the responsibilities, but the vessel has probably been used by many other guests and can be difficult to book. With SeaNet’s yacht sharing program, you can have all of the benefits of yacht ownership without all of the extra hassles.

Fractional yacht ownership is where several people all purchase shares of a yacht that is fully-managed, serviced, and maintained by a professional company, and each owner gets a set number of weeks to enjoy the luxury vessel as they wish. Being a part of a fractional yacht ownership program gives you all of the benefits of owning a yacht, without the hassles and headaches that come with being responsible for the upkeep of a boat. Your shares of the yacht can even be transferred or sold once you have decided to move on to a different program.

The team at SeaNet are pioneers in developing yacht sharing programs that work and have proven time and again to successfully meet our yacht owners’ needs through our unique, tailored system. The brands we have chosen to offer to you are among the finest vessels in the industry and feature the latest trends in style, comfort, and technology. If you’re interested in learning more about a personalized fractional owner program that fits your budget and lifestyle, please use our contact page, fill out the form, and one of our expert sales professionals will be in touch shortly to discuss options.

While there are many advantages to sharing ownership of a luxury yacht, the cost savings is certainly the primary reason that most boaters opt into our program. Many yacht owners only get to use their boat 5-8 weeks out of the year, so why carry the ongoing expenses of maintaining it? Below are a few of the main benefits of sharing a yacht through a SeaNet program instead of owning it outright:

• The entire ownership is turnkey and stress-free. Your yacht is clean and ready to cruise when you show up. When you’re done, there is no additional work required. We handle everything. • Any routine maintenance or repairs are completely covered, relieving you of the hassles of upkeep on your vessel. • Your yacht is professionally maintained by our team who has decades of combined experience. • Yachts that get used more and generally in better shape. If your vessel sits for long periods of time, systems and equipment begin to fail more frequently. • You never have to worry about managing a captain or crew, all of this is done for you. • Our complete yacht management service even includes provisioning, so your boat is fully stocked when it’s time to depart with your guests. • Your share in the yacht can be easily sold or transferred when you’re ready to move on.

Relatively new in the industry, fractional yacht ownership is quickly becoming a popular choice among boaters who want to experience the luxury lifestyle, without the high upfront and ongoing costs associated with being the sole owner of a vessel.

So what kind of yacht can you expect to buy into through a fractional ownership program? “SeaNet only offers the very best quality brands such as Benetti , Sunseeker, Absolute , and Van Dutch,” says Michael Costa, CEO and Founder of SeaNet. “All of our available yachts emphasize enjoyment on the water and total comfort. Whether sunbathing in a tropical destination or enjoying the 360-degree views from the flybridge, you will truly experience the luxury yachting lifestyle.”

New to our fleet of managed yachts available to you as a fractional owner is this stunning 2022 Absolute 62 FLY located in Newport Beach, California.

The new 62 FLY by the Italian luxury builder, Absolute Yachts, offers an inviting combination of performance, handling, exterior social areas, and interior comfort. Whether you are entertaining important guests for a night out under the stars, or cruising for several nights on an on-water vacation, the 62 FLY delivers in all aspects. There are four cabins on board, including a tremendously spacious and well-lit master suite, that all offer total comfort and plenty of storage. Enjoy the luxury yachting experience with SeaNet’s professional management services at a fraction of the cost with our exclusive yacht sharing program.

Related Posts

SEANET YACHTS FRACTIONAL YACHT OWNERSHIP NOW AVAILABLE IN THE PNW

New Model, The Absolute 70 Navetta

New Model, The Absolute 53 Navetta

Receive a market evaluation on your boat.

• new inventory
• all inventory
• preowned inventory
• sell your boat
• absolute yachts
• benetti yachts
• solaris power yachts
• alpha custom yachts
• Fractional Inventory
• All inventory
• What is Fractional Ownership?
• Cruising Locations

Click to speak with a private yacht concierge.

Fractional Yacht Ownership

Fractional yachts ownership differs from chartering in that the person who plans to use the vessel will own parts of it. One of the main benefits of fractional yachting ownership is that it can help keep buy-in costs low for a larger yacht and leave the maintenance to a management company.

If you are interested in fractional yachts ownership, AVYachts is the company you can turn to. We offer quality fractional ownership service to those who are dreaming of owning a yacht. Through our service, you can enjoy the conveniences of yacht ownership without the hassle of maintaining the vessel.

The Smart, Cost-Effective Way of Yachting

Some may consider yachts as the perfect holiday home. Nothing compares to exploring the seas on a boat that offers optimum comfort and functionality. That said, not everyone may be able to afford to live the yacht life. This is where fractional yachts ownership can help.

The goal of fractional yachts ownership is to tailor individualized, intelligent, and secure yachting ownership solutions to the needs of anyone who aspires to be a yacht owner. Different from traditional ownership, fractional yachts ownership guarantees your enjoyment of exploring the seas while you get to keep yachting costs to a minimum.

With fractional yachts ownership, you may be able to own a yacht that is bigger than the vessel you may be able to get for your current investment. Fractional ownership also allows you to use the boat as you like and on most days that are convenient for you. The berthing, cleaning, repairs, and maintenance of the vessel will be the responsibility of the fractional yachts ownership company.

Realizing Your Dream of Owning a Yacht

The high purchase price and ever-increasing annual costs associated with yacht ownership are one of the reasons why some of us stay away from it. This reason to avoid yacht ownership is supported by the fact that no one would normally use a yacht 24 hours a day and 365 days a year. With fractional yachts ownership, you can live your dream of owning a yacht at a fraction of the costs.

An Affordable Alternative to Traditional Yacht Ownership

By distributing the purchase and annual costs of yacht ownership with another individual, you can enjoy the benefits of luxury yachting in a way that may be more affordable for you. Those who share yacht ownership may be able to use their vessel in an individualized and flexible the entire year. In addition, they can avoid time conflicts by sharing yacht ownership with a person whose interests align with theirs.

Living the Yachting Life Without Any Hassle

Through fractional yachts ownership, you can enjoy your pressure leisure time at sea while someone else handles all the aspects of yacht management for you. The fractional ownership company will help make sure that the shared vessel is in top condition and arrange maintenance, mooring, and repositioning as needed.

Fractional Yachts Ownership That Fits Your Budget and Lifestyle

Great fractional yachts ownership should be able to provide you with customizable packages that can fit your lifestyle as well as budget. At AvYachts, we give you the choice to be a shared owner for three or six weeks of the year. Additionally, you will be offered the opportunity to sell or trade a week at sea with a week on shore. This is through the privileges of being a Premier Elite Alliance member.

We understand that one size does not fit all in fractional yachts ownership. For this reason, we allow you to choose the size of your yacht as well as the time on board that is the most convenient for you.

Frequently Asked Questions

Where can I use the yacht?

When you co-own an AVYachts yacht, you will have the ability to use it in amazing destinations in your five years of ownership! You can always consult our representative for our destination guide.

What does the quarterly fee cover?

The costs of maintenance, crew service, insurance, and repositioning to locations are included in the quarterly fee.

What are my options if I want to sell my share before my five-year ownership ends?

You have two options. If you realize that our ownership program is not for you within your first year of ownership, we are willing to buy back your share for the 70% of what you paid. Should you wish to sell your portion of the vessel before your five-year term is over, we will do everything we can to help you market and sell it as if it were a full yacht sale.

Reach Out to AVYachts Today

Do you wish to own a yacht without paying its full purchase price? Our shared ownership program at AVYachts may be the best solution for you. Contact one of our staff members now for more information.

AvYachts Destinations

Please fill out the form below to get more information!

The Coveted Group Receives $8.5 Million Investment for East Cape Los Cabos Project

The Coveted group announces two real estate projects in Northern Arizona and Wisconsin.

Los Cabos, Mexico - August 30, 2024 —

The Coveted Group , led by visionary Founder and CEO Derrick Grahn, is renowned for its innovative real estate projects. The company is now developing Nine Palms Ranch, its newest venture on the East Cape of Los Cabos. Drawing inspiration from the nearby iconic surf break, Nine Palms is set to redefine deeded fractional real estate, a niche The Coveted Group dominates with its participation in the pioneering of developments like Flora Farms.

Valued in the hundreds of millions, The Coveted Group recently secured a significant endorsement and investment of $8.5 million from Aktiva Capital—a private investment fund based in Mexico City—and its partners. This investment kickstarts The Coveted Group’s vision of crafting an unparalleled residential experience at Nine Palms Ranch, aligning with the global demand for personalized, home-centric vacation home ownership, a market anticipated to reach $36 billion by 2031.

“This investment further validates our fractional business model and the appeal of Cabo’s East Cape,” says Derrick, detailing why The Coveted Group’s innovative approach to fractional real estate ownership has gained such traction. “Our experience mirrors popular research showing that people typically use second homes for only two to four weeks a year. Savvy buyers recognize the value in owning specific weeks of a luxury second home in perpetuity, rather than purchasing an entire property outright.”

Derrick explains that instead of spending $1 million on a luxury second home that demands passive management, buyers can own a few weeks or a month of an even more luxurious property for under $100,000, securing their place in that home forever. The fractional real estate offered by The Coveted Group is turnkey, meaning owners never have to expend effort to enjoy, use, rent, or sell it. Unlike timeshares, which are often seen as liabilities, fractional ownership through The Coveted Group represents a tangible asset.

The East Cape, with its dramatic desert landscapes cascading into the azure waters of the Sea of Cortez, has seen a surge of interest. It’s reminiscent of the unspoiled beauty of Cabo in decades past.

“I’ve noticed a huge uptick in activity in the area over the last several years. The market is trending towards the luxury sector, as evidenced by the newly developed Costa Palmas, which includes Four Seasons and Aman,” says LeeRoy Jarvis of Cabo Cribs Luxury Real Estate.

Kelly Underdahl of WARE Baja adds, “The East Cape in Los Cabos represents the pinnacle of luxury real estate's upcoming frontier. It’s a sanctuary for those desiring the ultimate coastal lifestyle.”

Broker Blake Harrington of The Baja Real Estate Co. notes, “The towns of San Jose Del Cabo and Cabo San Lucas have been experiencing some growing pains due to higher densities from Cabo’s real estate boom over the last few years. This is part of what makes the East Cape so appealing. In contrast to San Lucas and San Jose, the East Cape offers a rare and timeless Baja experience, with dirt roads, trails, and miles of undeveloped, secluded beaches, providing guests and residents a genuine sense of exploration.”

Nine Palms Ranch aims to encapsulate and preserve the property’s untouched wilderness and nostalgic allure.

Gaston Sosa (left), chairman of Aktiva Capital, and Derrick Grahn, CEO of The Coveted Group, formalize their agreement in Mexico City.

Current Nine Palms Ranch opportunities are twofold. For those focused on financial gain, The Coveted Group offers accredited and sophisticated investors opportunities with very strong returns. For those who prefer owning a piece of Nine Palms Ranch, Coveted is close to unveiling exclusive Founding Ownership opportunities . However, this elite tier of ownership isn’t open to the general public. Similar to American Airlines' iconic and now unavailable “Air Pass” program, the Coveted Group’s Founding Ownership Program is invitation-only, a strategy that has been a cornerstone of Coveted Group’s success, fast-tracking initial sales of their distinguished projects. The Founding Owner program offers exclusive founder-only pricing and special lifetime benefits to those whom Coveted deems an ideal fit for Nine Palms, align with Coveted Group’s dream client profile, or possess elite status as a current Coveted Group client.

As Cabo’s East Cape rises in prominence, Nine Palms Ranch by Coveted is set to become one of Los Cabos’ newest havens, where rustic Baja nostalgia meets modernity through Coveted Group's innovative fractional real estate model. Residents and visitors will find an idyllic escape, complete with picturesque views and a range of amenities, including a beach club, boutique hotel, spa, and various outdoor recreational opportunities. Each element is thoughtfully designed to enhance the natural beauty of the Baja landscape and breathe new life into the ranch's historic land.

For more information, visit The Coveted Group’s website , follow their Instagram , or explore their YouTube channel .

About the company: Using a unique, proven, and proprietary business model, The Coveted Group offers turn-key solutions for developers, property owners, and homeowners to 3x expected forecasts. Coveted has the real world experience to assist with all or part of the following — feasibility, funding, concept, hospitality implementation, planning, architecture, legal, fiscal strategy and accounting, marketing, and sales.

Contact Info: Name: Derrick Grahn Email: Send Email Organization: The Coveted Group Website: https://thecovetedgroup.com/

Release ID: 89138692

Should there be any problems, inaccuracies, or doubts arising from the content provided in this press release that require attention or if a press release needs to be taken down, we urge you to notify us immediately by contacting [email protected] (it is important to note that this email is the authorized channel for such matters, sending multiple emails to multiple addresses does not necessarily help expedite your request). Our efficient team will promptly address your concerns within 8 hours, taking necessary steps to rectify identified issues or assist with the removal process. Providing accurate and dependable information is central to our commitment.