U.S. Business Owners Eye Tax-Friendly Yachts as Charter Investment Opportunities Expand

With recent updates to U.S. tax law reigniting interest in bonus depreciation, more business owners are looking beyond traditional assets and into luxury charter yachts as a strategic investment. Charter-ready catamarans, especially those operating in the Caribbean, are gaining traction as they offer both potential income and significant tax incentives—creating a rare blend of lifestyle and financial advantage.

This surge in demand follows renewed interest in Section 179 and 100% bonus depreciation, which allows qualifying businesses to deduct the full cost of certain assets—including yachts—used primarily for business purposes. For U.S. buyers, this can translate into a substantial first-year tax deduction when purchasing a vessel that meets the IRS criteria for active use in a charter business.

Steve Varrow, founder of Virgin Islands Yacht Broker (VIYB), noted an uptick in inquiries after publishing a guide that outlines how yacht ownership, when structured correctly, can be paired with professional charter management and LLC ownership for full IRS compliance. ‘Our clients aren’t just looking to buy a boat—they’re seeking a tax-advantaged lifestyle investment that also generates income,’ said Varrow.

Many of the yachts listed with VIYB are already placed in charter fleets or located in jurisdictions like the U.S. Virgin Islands and British Virgin Islands, making them ideal for buyers seeking to capitalize on both depreciation and operational revenue. VIYB also provides support services, including introductions to tax professionals, documentation agents, and charter operators, ensuring a seamless transition into yacht ownership and charter operations.

One example is a 67-foot Fountaine Pajot Alegria currently listed through VIYB, which is positioned to meet the active-use criteria and is offered with charter bookings in place. ‘This level of turnkey readiness is essential for buyers who want to start realizing tax benefits immediately,’ added Varrow.

As the 2025 fiscal year progresses, VIYB expects continued interest from high-net-worth individuals and business owners aiming to leverage these tax benefits before the current rules sunset. With the right strategy, owning a yacht can now be more than a luxury—it can be a smart business move.

About the Author

Steve Varrow is the founder of Virgin Islands Yacht Broker (VIYB), specializing in the sale of luxury catamarans and charter yachts throughout the Caribbean. With over two decades of experience in yacht brokerage, sailing instruction, and charter management, Steve provides high-net-worth clients with expert guidance on tax-advantaged yacht ownership strategies. VIYB operates from the British Virgin Islands, helping buyers and sellers navigate every stage of the yacht ownership journey.

Media Contact:
Steve Varrow
Virgin Islands Yacht Broker
Email: steve@virginislandsyachtbroker.com
Website: www.virginislandsyachtbroker.com

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