Chartering your boat to offset costs

The sum to do first

Charter income is a calculation:

Weeks booked × weekly rate − agency commission − extra costs = net income.

Extra costs include the skipper or crew if the charter is skippered, cleaning between charters, extra insurance, extra maintenance, fuel and port fees not paid by the guest, and the commercial licences. Ask a charter company for its real figures for your model, the weeks it books in a season, its commission, and its owner contract. We do not quote income figures, because they differ by model, port and year.

What charter changes in Spain

• Registration. A boat chartered commercially is registered in the commercial list, Lista 6. See How to register a yacht in Spain: Lista 6 vs Lista 7 (commercial vs private).
• Tax. The commercial status can affect VAT and the Spanish registration tax. Mixed charter and private use in Spain can lose an exemption. See Spanish taxes beyond VAT: registration tax and transfer tax (ITP).
• Safety and survey. Commercial boats carry more safety equipment and are inspected to a higher standard. See Essential safety equipment by flag and category.
• Insurance. A private policy does not cover paying guests. See Marine insurance: cruising limits, agreed value, winter storage.
• Skipper. Charter guests with no licence need a skipper. See Skipper licences in Spain: PNB, PER, Patrón and Capitán de Yate, and foreign licence recognition.

Management contracts

Most owners put the boat with a charter company under a management contract. Read these points before you sign:

• How many weeks you can use the boat yourself, and in which months.
• Whether the company guarantees any income, and for how long.
• Who pays for repairs after charter damage, and who decides.
• The term of the contract and the exit conditions.
• The condition in which the boat returns to you.

The cost to the boat

A charter boat is used by many hands every week of the season. Engine hours rise, upholstery wears, and a boat that has been chartered for five years looks and feels different from a private one. That affects resale. See Try before you buy: chartering the model first for what ex-charter boats are like to buy.

Is it worth it?

For most private buyers, charter reduces the running cost without covering it, in return for fewer free weeks and more wear. It suits a buyer who would not use the boat more than 6 to 8 weeks a year anyway. It does not suit a buyer who wants the boat available every August.

Related guides

• The true cost of ownership in Spain and the Med
• Who should own the boat? Private, company or co-ownership
• How to register a yacht in Spain: Lista 6 vs Lista 7 (commercial vs private)