Alt tag: Man using a laptop on the deck of a yacht with another luxury yacht in the background at sunset.
Buying a yacht is rarely as simple as finding the right vessel and paying the asking price. For many owners, the more important question is how the acquisition should be structured.
Yacht finance can provide an alternative to using a large amount of capital upfront, allowing owners to spread the cost of an acquisition while retaining liquidity for other investments and the ongoing costs of ownership.
In 2026, the decision is becoming increasingly focused on more than the amount being borrowed. The value, age, condition, maintenance history and intended use of the yacht can all influence how a financing structure is assessed, while owners are also considering how the asset fits within their wider financial plans.
For anyone considering a yacht acquisition, understanding the available structures and what lenders look for can make the process considerably clearer.
What Is Yacht Finance?
Yacht finance refers to the different financial structures available to help fund the acquisition of a yacht.
Traditionally, buyers may have considered a conventional yacht loan, where a lender provides capital towards the purchase and the borrower repays that amount, plus interest, over an agreed period. However, lending is only one option.
Leasing has become an important part of the European yacht-financing landscape, particularly for owners looking for a different balance between upfront capital, monthly payments and ownership structure. Yacht leasing can provide access to an asset without requiring the buyer to fund the entire acquisition from their own capital.
The most suitable structure depends on the yacht, the owner, the intended use of the vessel and the desired approach to ownership.
How Can You Finance a Yacht?
There is no single way of financing a yacht, but the main options include:
- Purchasing the yacht outright using available capital
- Using a traditional loan or lending structure
- Using a financial lease
- Using an operating lease
Purchasing outright provides full ownership from the outset but also ties up significant capital in a single asset.
A yacht loan can reduce the initial capital requirement while giving the buyer a more conventional ownership structure. However, the cost and availability of lending will depend on the transaction, the borrower and the yacht.
Leasing takes a different approach: rather than simply borrowing money to purchase the yacht, the financing structure is built around the use and ownership of the underlying asset.
Yacht Leasing: An Alternative to Buying Outright
Yacht leasing can be attractive for owners who want to acquire a yacht while maintaining greater liquidity elsewhere in their portfolio.
Instead of committing the full purchase price on day one, the cost is spread through an agreed lease period. Depending on the structure, the legal ownership of the yacht may remain with the lessor throughout the term, while the client retains the use of the vessel and, in some structures, an option to acquire it at the end of the lease.
For owners considering a private yacht lease, the structure can be particularly relevant when the yacht is intended for personal use, and the owner wants to consider the wider financial implications of the acquisition.
What Do Lenders Look At When Financing a Yacht?
One of the biggest misconceptions around yacht financing is that the lender is only assessing the buyer.
The yacht itself is central to the transaction.
In 2026, marine lending is increasingly focused on the quality of the underlying asset, with lenders considering factors such as vessel age, condition, valuation, maintenance and potential resale value. Older vessels can attract greater scrutiny because their condition and future market value can be more difficult to assess.
Age and condition
Age does not automatically make a yacht unsuitable for finance. However, older vessels may require more detailed technical and valuation assessments, particularly where significant maintenance or refurbishment is required.
A well-maintained yacht with a clear service history may present a very different proposition from a vessel with substantial deferred work.
Valuation
The value of the yacht affects how much financing may be available and how much equity the owner may need to contribute.
Loan-to-value, or LTV, is an important consideration in marine lending because it determines the proportion of the asset’s value being financed.
Maintenance and refit history
A documented maintenance programme can provide greater visibility into the condition of the vessel.
For older yachts in particular, evidence of major upgrades, engine work or a comprehensive refit can be relevant to understanding the asset’s future potential.
The recent return of Belle Brise, the 48-metre Perini Navi originally launched in 1993, provides an interesting example. Following an extensive rebuild at Lusben in Livorno, the yacht underwent significant restoration and technical upgrades before returning to Malta in 2026. Rather than viewing age in isolation, the project demonstrates the importance of considering what investment in an established yacht can mean for its future life and value.
Intended use
Whether the yacht will be privately owned, commercially operated or used for charter can also affect the financing structure.
The legal, operational and tax considerations can differ depending on how the vessel will be used, making it important to establish the intended use at the outset.
The owner’s wider financial position
The borrower remains an important part of the assessment. Depending on the lender and structure, this may include consideration of liquidity, existing assets and the owner’s wider financial position.
The result is that yacht finance is ultimately about more than securing enough money to complete a purchase. It is about understanding both sides of the transaction: the person acquiring the asset and the asset being acquired.
How Much Does Yacht Finance Cost?
Rates, fees, deposit requirements and repayment structures can vary considerably depending on the transaction. Current marine-lending guidance highlights factors including the amount financed, down payment, vessel age and type, term and borrower profile as influencing the cost of borrowing.
For that reason, owners should look beyond the headline interest rate or monthly payment.
The overall financial picture may include:
- Initial equity or down payment
- Interest or lease costs
- Arrangement and administrative fees
- Insurance
- Maintenance
- Crew and management
- Berthing or storage
- Fuel and other operational costs
The financing structure should therefore be considered alongside the total cost of ownership, rather than in isolation.
Financial Lease vs Operating Lease
For owners considering yacht leasing, it is important to understand that different leasing structures can produce very different ownership outcomes.
St Julian’s Finance offers both financial lease and operating lease structures for new and used yachts.
Its financial lease is designed for selected yachts where finance of between €600,000 and €1.2 million is required. The structure can be used for privately or commercially operated yachts, with terms of between three and seven years. Legal ownership remains with the lessor during the lease, while economic ownership is transferred to the lessee, with full ownership transferring when the purchase option at the end of the lease is paid.
The operating lease is designed for higher-value yachts costing up to €20 million, again with three- to seven-year terms. Under this structure, a dedicated special purpose vehicle owns the yacht and leases it to the client for the agreed period. At the end of the term, the lessee has the right to purchase either the yacht or the SPV, depending on the agreed structure.
For privately used yachts, SJF also highlights the VAT treatment available through its operating lease structure, where VAT is charged on lease rentals rather than the full purchase value and is spread through the lease period. The precise tax implications will depend on the circumstances and structure of each transaction.
The important point is that private yacht leasing is not one standard product. Different structures can be used to achieve different ownership and financial objectives.
Speak to our specialists to find out more about the two different leasing options available.
Speak to St Julian’s Maritime Finance
Why Specialist Yacht Finance Matters
A specialist provider understands that a yacht is a highly specific asset rather than a conventional piece of property. Its value can depend on its age, specification, provenance, condition, refit history and future marketability.
St Julian’s Finance has an established team with more than 30 years of yacht-financing experience, offering financial and operating leases for new and used yachts for both private and commercial use.
Its support also extends beyond the financing structure. SJMF can assist clients with yacht selection, sourcing maintenance providers, selecting insurance, flag registration and crewing, helping to bring several parts of the ownership process together.
That broader understanding can be particularly valuable when dealing with a high-value asset where the financial structure, ownership arrangements and practical requirements of the yacht are closely connected.
Considering financing for your next yacht acquisition? Discover how St Julian’s Maritime Finance can help structure the right solution for your yacht.
Explore St Julian’s Maritime Finance’s yacht leasing solutions
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