CGMER : Boat financing and insurance

Anyone wishing to acquire a yacht, but who does not want to tie up their entire capital. More importantly, anyone wishing to benefit from tax advantages.

No. Even if you can afford to buy the boat outright, you will not only save money by paying less tax but you can also continue to allow your capital to work for you, making bigger savings.

This depends on you financial residence - the country where you pay your income tax. Normally it is the local law of this country.

With the leasing instalments you will pay only half of the French VAT, which at this moment equates to 9.8% of the lease instalment.
This advantage is in accordance with EU tax law, because the provision of a service is taxed in the country in which the service is being rendered. Because the lessor (CGMer’s holding company CGL) is located in France, French VAT is applied. Your yacht is taxed according to EU laws from the outset.

CGL, the holding company for CGMer, has been providing boat finance for over 30 years.

Yes. It can be advantageous for people who have a mooring in Croatia, for example. In this example, depending on the time spent outside the EU waters, the VAT can be reduced to 0% for each lease payment.
At the end of each year, you have the option to be charged according to the “forfait regime” (9.8% VAT on the lease instalments) or according to the actual time spent outside EU waters. In the latter case, proof that the vessel has been berthed outside the EU for the whole year and a written confirmation of your stay outside the EU during this period is required, e.g. your log book is sufficient.

Yes. But only if the company cannot recover the VAT. Tax authorities often consider the operation of a yacht to be a hobby, in spite of commercial use. In cases where tax is recoverable, we can offer interesting credit solutions instead.

It is sufficient if you state that you have left EU waters, even if you can not specify when and for how long.

Technically, and from the location of its berth, the yacht must be able to leave EU waters. It must also carry a life-raft. Also the yacht must have a CE-Classification A, B, or C(> 6.50m).

Yes. We offer a special contract. Italian leasing however is only interesting for larger yachts. In general, we create tailor-made solutions to fit your individual needs.

GYLF is the broker for the leasing products of CGMer in Northern Europe, as well as in Spain and Portugal.

No. We accept all models, motor yachts as well as sailing yachts.

We offer terms of between three and twelve years. For the higher priced yachts, terms up to 15 years are possible.

This depends on your personal situation and wishes. In general the longer durations cause less strain on your liquidity and the monthly instalments are lower. Additionally, the money you did not tie up can bring you dividends on other assets.

Depending on your fiscal residence the first instalment (your investment) must be between 30% and 50% of the purchase price of the yacht. Individual solutions are however possible.

No. We offer leasing with an option to buy.

You can transfer the contract to a third party at any time (prior approval of their financial situation is required). No additional costs will arise. The buyer will be able to profit from a tax advantage. The buyer can also re-arrange the remaining duration according to his requirements. Should you however wish to terminate the contract earlier, the full (local) VAT must be paid.

Yes. If your dealer is willing to accept your boat. You will pay the first instalment under the lease to your dealer. The value of your present boat will be credited to your first instalment.

Yes. You will pay the first instalment, including the tax advantage, directly to your dealer. We will receive an invoice, confirming your payment, and will pay the remaining amount to the dealer upon delivery of your yacht.

Legally the lessor (CGMer) is the registered owner. You may however use the yacht as if you were the owner. You become the owner at the end of the leasing period, if you take up the option to buy.

When signing a credit contract, you will be the legal owner.

Usually the boat will suffice as guaranty. As with every other financial institution, we will carry out a credit assessment to check your financial situation.

Yes. As far as these costs can be included in the initial buying price. Your yacht dealer will also have to co-operate, if the add-ons are bought from different suppliers.

You decide who will be the lessee. All others will be registered as co-lessees. We will need the documents for the credit assessment from all participants (up to 3 persons). There will be an annex added to the agreement.

Yes, this is no problem. The instalments will be changed accordingly, should you leave the EU waters permanently or return anew. A simple request in writing suffices.

We are owned by the Société Générale, the fourth largest bank in the world. So this risk can be considered to be very small. In addition there are securing agreements between banks, which prevent financial disadvantages to our customers. As a financial institution, our holding company is subject to the supervision of the “Banque de France”. This supervision ensures the coverage of any obligation by reserves, according to the Basel II criteria.

The most common flags we offer are the German, French or Dutch flag. We can however, also offer the Spanish or Italian flag. Of course we speak all these languages. The choice of flag is not related to the country you are from. So you are free to decide.