Luxury Asset Management
Management for yachts, aircraft, and other luxury assets
The team of specialists at Boston MFO are on hand to help wealthy individuals, families, and companies with the accumulation and management of luxury assets such as superyachts, private aircraft, and collections of art or other valuable possessions. Our luxury asset management services make the ownership and administration of these assets simple and secure. The structures we establish and administer are built around the needs and goals of the owner, whether that is simple leisure use, commercialisation of the assets (e.g. via leasing or chartering), preservation and succession planning, philanthropic use, or any other requirement.
We provide the following luxury asset services:
- Establishment of tailored ownership structures, which will be VAT efficient where applicable.
- Multi-jurisdictional yacht and aircraft registration.
- Support and direction for yacht financing and aircraft financing options.
- Comprehensive administration of the ownership structure.
- Management and financial reporting.
- Provision of internal industry updates and information.
- Coordination and liaison with technical or artistic specialists.
Yacht Registration and Management Services
As complex, mobile, and extremely valuable assets, it is extremely important that yachts are properly registered and their ownership is well structured. Doing so ensures that the owner can enjoy the asset without interference, that costs are kept at reasonable levels, and that liability for any unforeseen issues doesn’t extend to the owner’s other assets. We provide registration and administration services that ensure these considerations are carefully met on an ongoing basis.
The intended use of the asset is vital when considering your options. Those available to private owners are different to those available for commercially operated assets, and many vessels will fall into the latter category if the owner chooses to offer the vessel for charter to mitigate some of the costs of ownership.
Depending on the type and use of the asset it may be possible to implement a structure that allows for the recovery of VAT on the acquisition and operation of the yacht. The physical location of a yacht can also determine which VAT rate is applied upon purchase or importation.
What Boston MFO Can Do for You
We provide structuring advice, company incorporation, administration, VAT and accounting services, and the provision of directors, registered offices, and registered agent/company secretary. Rules and regulations, particularly those governing EU VAT, do change from time to time, but our experienced team is here to support you over the long term. In addition to this advice, we can also offer VAT deferment services on purchases in some jurisdictions, helping to ease the overall outlay required.
Finally, we are also able to advise and support you with yacht financing questions and can make introductions to suitable technical and crewing managers as necessary.
The pre-eminent jurisdiction for European yacht registration is now Malta, offering a central location, EU VAT registration (as a full EU member state), and extremely effective and competitive industry regulation. The Malta yacht leasing scheme is particularly well respected within the industry. We have an office in Malta that is extremely experienced in local structuring for superyachts, supported by an international team able to advise on the bigger picture. For yachts that are likely to be used outside of the EU, our international offices offer non-EU registration and administration alternatives.
Aircraft Registration and Management Services
We provide aircraft registration, structuring and administration services for individuals and companies all over the world. The varied experience of our specialist team encompasses everything from private use of a single plane through to administration of commercial fleets. As with our yachting services, this includes:
- Structuring advice
- Company incorporation
- VAT and accounting services
- The provision of directors, registered offices, and registered agent/company secretary
For aircraft that will be used within the EU, VAT planning will become an important part of the structuring process. As improper VAT planning can lead to aircraft being grounded at certain ports, it is essential this is done properly, and we create ownership structures which ensures ease of use, paying neither too much nor too little VAT based on prevailing law. The locations of use, as well as the type of aircraft and the primary use of the craft, will all impact on the potential VAT situation. In some cases, we can even offer VAT deferment services to minimise the cashflow requirements involved in purchasing an aircraft.
Registering Luxury Assets in the Isle of Man or Malta
The Isle of Man and Malta are two of the most well respected and popular registries in Europe – indeed, they are amongst the fastest growing registries in the world, with the IoM aircraft register broadly being favoured for private jets and the Malta aircraft registry being popular for more commercial arrangements.
Both offer slightly different benefits, but are similar in that they provide extremely high levels of service and respond quickly. With offices in both jurisdictions we are particularly well suited to registering aircraft there and forming structures in those jurisdictions, however we are also able to form and manage aircraft owning companies in a wide variety of jurisdictions and manage aircraft registered in other jurisdictions around the world.
Structuring for Art, Cars, and Collectibles
Although superyachts and aircraft are two of the most common luxury asset types under our management, we are also highly experienced in creating ownership structures for other luxury asset types. We have built and continue to administer ownership structures for artwork, vintage car collections, and other forms of collectibles. Due to the longevity of the investments involved in these asset classes, succession planning is often at the forefront of the owner’s mind. We develop international trust and company structures which will not only safeguard the accumulated assets during life, but will also ensure they are managed appropriately after the original owner’s death and ensure they can be enjoyed fully for both their aesthetic and financial values by the owner’s successors.
In many cases, an owner’s wishes regarding such collections will also include the intention to make them accessible to museums or the public. In these cases, the proper establishment of trusts (or in some cases private trust companies) is particularly relevant and we are well versed in building effective governance structures for philanthropic causes.
Support for Brokers and Managers
Crucially, whereas many corporate service providers will duplicate work done by your asset manager or broker, we will work with your existing providers to ensure no duplication of effort, and therefore no unnecessary fees. We will also work with brokers right from the start of a potential sale process to ensure VAT planning and its impact on total costs of ownership doesn’t delay the sale.
In some cases, our conflict-free administration of assets has complimented the work of yacht and aircraft management companies so well that we have set up specialist arrangements in which we operate as a preferred administration supplier for those firms. Under these arrangements, we provide white-label administration services to a large portion of their client base through a managed trust company structure. If you are a broker or manager interested in a similar partnership, please get in touch.