The ownership entity
A BV that exists only to own the yacht is the legal owner. The liability stays within this BV, and the lender and the insurer deal with one company. You can later sell the yacht itself or the shares in the BV. The family holding company owns this BV. See how the group is structured. Gulf owners who order a yacht at a Dutch yard usually set up the owning BV in the Netherlands too. The BV is then in the same country as the build contract.
Flag and registration
The Dutch flag is respected in every marina. The reasons are its EU status, its name for quality and a practical register. For charter use, a Dutch owner sometimes uses a separate, well-known charter flag. The choice depends on where you cruise and how you use the yacht. The Dutch BV can own the yacht under either flag.
VAT status of the yacht
For private cruising in the EU, you need proof that VAT has been paid on the yacht. You settle this at import or purchase and keep the proof on record. For commercial charter, the VAT rules of the operator apply, with their own rules for deduction. Owners from outside the EU who cruise in the EU for a limited time can use the EU rules for temporary admission. Work out which rules apply and which paperwork you need before the purchase, with a specialist VAT adviser. The approach for aircraft is similar. See aircraft ownership through Dutch structures.
Do you want to set up a Dutch BV from abroad? See setting up a BV in the Netherlands for the costs, the steps and the timeline. We arrange the notary and the KVK registration for you.
The paperwork to keep
Keep the VAT proof on board. Make the management and charter agreements at arm's length, and keep logs that match the stated use of the yacht. The Dutch Tax Administration looks for the same kind of substance in other companies. See what the tax authorities look for.