Is a yacht loan or leasing cheaper overall?

It depends almost entirely on the VAT saving from leasing relative to its setup and ongoing costs. For vessels over 16 metres in EU waters, leasing through a Malta structure typically produces a lower total cost. For smaller vessels or non-EU buyers, a standard loan is usually cheaper once you account for the SPV setup, ongoing corporate administration, and complexity.

Can I get a yacht loan and a leasing structure at the same time?

Yes — and this is exactly how the Malta leasing structure typically works in practice. The Maltese SPV that owns the vessel takes out a marine loan from a lender, and the beneficial owner leases the vessel from the SPV. The financing is provided to the SPV with a personal guarantee from the beneficial owner. Loan and leasing are not mutually exclusive — they are often combined.

Do lenders treat leasing structures differently from direct loans?

Most specialist marine lenders and private banks accept leasing structures, but the documentation requirements are more complex. The lender lends to the SPV, takes a charge over the vessel, and requires a personal guarantee from the beneficial owner. LTV limits are generally consistent with personal ownership, though some lenders apply a small additional margin for the complexity.

What are the disadvantages of the leasing structure?

The main disadvantages are: setup cost of €5,000–€15,000 for the Maltese SPV and lease documentation; ongoing annual administration of €3,000–€8,000; a more complex financing process; and the need for specialist legal and tax advisers throughout. The structure is not suitable for buyers who want simplicity or for vessels where the VAT saving is modest.

Is leasing available for all yacht sizes?

The Malta leasing structure is available for all vessel sizes, but the effective VAT rate varies by length. For vessels under 7.5 metres, the EU-water-use percentage is 90%, producing an effective VAT rate of 16.2% — not far below the standard 18%. The structure becomes increasingly compelling as vessel size increases, with the effective rate falling to 5.4% for vessels over 24 metres.

Loan vs Leasing for Yacht Purchases: Which Is Right for You? | Waaza

A yacht loan and a leasing structure are both financing mechanisms — but they work very differently, cost different amounts in total, and suit different buyers. The decision between them is primarily driven by your VAT position, the vessel's size and value, and how important simplicity is versus tax efficiency. This guide compares both options across every dimension that matters.

How each structure works

A yacht loan is a secured lending arrangement. The lender advances funds to the buyer — personally or through an SPV — and takes a charge over the vessel as security. The borrower makes monthly repayments of principal and interest over the loan term. At the end of the term, the vessel is owned outright.

A leasing structure — most commonly the Malta leasing arrangement — involves a Maltese SPV purchasing the vessel, then leasing it to the beneficial owner. The SPV typically funds the purchase partly with its own capital and partly with a marine loan. VAT is charged only on the EU-water-attributable portion of the lease payments. At the end of the lease, the beneficial owner purchases the vessel from the SPV for a nominal sum.

In practice, most leasing arrangements involve a marine loan at the SPV level — so the two structures are not mutually exclusive. The distinction is really about whether the ownership vehicle and VAT treatment involve a leasing layer or not.

Illustration comparing yacht loan and leasing structure financing options showing key differences in cost and VAT treatment

Upfront costs compared

Cost item	Loan (personal)	Leasing (Malta SPV)
VAT on vessel	Full rate (e.g. 18–22%)	Effective rate 5.4–16.2%
SPV setup	None	€5,000–€15,000
Legal / structuring fees	Low	Higher — specialist advisers needed
Deposit / equity	Typically 30–40%	Typically 30–40% at SPV level
Arrangement fee	0.5–1.5% of loan	0.5–1.5% of loan

For a €2 million vessel over 16 metres, the VAT difference alone — 7.2% effective leasing rate versus 18% standard rate — amounts to approximately €216,000. Against setup costs of €15,000 and five years of annual administration at €5,000 each, the net saving is around €176,000. The larger the vessel and the higher the standard VAT rate in the purchase jurisdiction, the more compelling the leasing case becomes.

VAT treatment

This is the central differentiator. A standard loan purchase attracts full VAT at the applicable rate in the country where the transaction takes place — 20% in France, 22% in Italy, 18% in Malta. There is no mechanism within a loan-only structure to reduce this liability.

The leasing structure reduces the effective VAT rate by applying VAT only to the EU-water-attributable portion of the lease. For full details of how the rates work by vessel length, see the Malta yacht leasing guide. For a broader picture of VAT across European jurisdictions, see VAT on yacht purchases in Europe.

Financing terms and LTV

Loan terms for both structures are broadly comparable. Specialist marine lenders offer loan tenors of 10–15 years for vessels in good condition, with LTV of 60–70% for mid-range vessels. The key difference is that under the leasing structure, the loan is made to the Maltese SPV rather than to the individual — which requires additional corporate documentation.

Most lenders require a personal guarantee from the beneficial owner when lending to an SPV. Some apply a slightly lower LTV to SPV-held vessels, though this varies by lender. In practice, the financing terms available through both routes are similar for buyers with strong profiles.

Lender options for each structure

For straightforward personal loan purchases, the full range of specialist marine lenders is available — BNP Paribas Marine, Crédit Agricole, Lloyds Bank, specialist marine finance houses, and private banks. Competition is strong and terms are well-established.

For leasing structures, the lender pool is somewhat narrower — not all marine lenders have the documentation framework for SPV lending. Private banks and the larger specialist marine lenders generally do. It is worth confirming lender appetite for the SPV structure before establishing it.

Illustration showing the step-by-step process of choosing between a yacht loan and a leasing structure for a purchase

Ongoing obligations

Obligation	Loan	Leasing (Malta SPV)
Monthly payments	Loan repayment	Lease payment + loan repayment at SPV level
VAT filing	None	Monthly Maltese VAT returns
Corporate admin	None	Annual accounts, registered office ~€3–8k/yr
Insurance	Comprehensive required	Comprehensive required
End of term	Vessel owned outright	Exercise purchase option for nominal sum

Which to choose

The decision framework is straightforward once the numbers are laid out. Ask three questions:

Is the vessel over 12 metres? Below this, the leasing VAT saving is modest. Above it, the saving becomes increasingly material.
Will the vessel be in EU waters? The leasing structure only produces a VAT benefit if EU VAT would otherwise apply. Non-EU operations change the calculus entirely.
Is the VAT saving larger than the total setup and admin cost? Model it. For most vessels above €1 million in EU waters, the answer is yes. For smaller vessels, often no.

If the answer to all three is yes, the leasing structure deserves serious consideration. If any is no, a straightforward loan is almost certainly simpler and cheaper overall.

The leasing structure is not inherently better — it is conditionally better. The condition is a vessel large enough that the VAT saving materially exceeds the structure's cost. Model it before committing.

Loan vs Leasing for Yacht Purchases: A Direct Comparison