With the Caribbean charter season now upon us, we provide an update on whether the recent changes to yacht VAT in the Bahamas will affect charter clients this winter.
Earlier this year a new VAT policy for yachts cruising in the Bahamas was announced with the original proposed tax standing at a significant 15% starting from January 2015. This was later lowered to 7.5% but there were still concerns about the potential negative effect this increase could have on sea tourism in the Caribbean archipelago, particularly for charters already booked for winter 2014/2015.
As one of the most popular winter luxury charter destinations in the world, superyachts visiting the Bahamas make an important contribution to the local economy. However, it has now been confirmed that the VAT on foreign flagged charter vessels will continue to incur the 4% charter tax as usual, paid by the charter client. All foreign flagged yachts must also continue to register as Foreign Vessels in order to charter in Bahamian waters
Year on year, some of the global charter fleet’s finest superyachts make their way to the glistening Caribbean waters to escape the European winter for a few weeks and explore the pristine islands of the Bahamas. With more than 700 stunning islands and islets to choose from, a Bahamas luxury yacht charter itinerary offers the quintessential superyacht experience – island-hopping from one paradise to another relaxing on pearl white sands and diving in crystal clear coral strewn waters.
For more information about booking a charter in the Bahamas or the Caribbean contact your preferred charter broker.