Blue water cruising on catamaran: focus on financing

Published on 16 october 2014 at 10h05

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BUYING A CATAMARAN - the most popular solution
Whether new or second-hand, buying a catamaran which is going to be with you for the years ahead is the most logical solution (see the following pages for the choice between new, second hand or a catamaran at the end of a management term). All that remains is to finance it. And in this instance there is a “magic” product which in some situations can make for substantial savings, and that is leasing or LPO. The Lease with Purchase Option financing is available to residents of the European Community and Switzerland. You can buy a new catamaran through leasing, but it is equally possible to buy a second-hand catamaran with this type of financing, on condition that not all of the VAT (tax) has been paid. For this, it means that the purchased boat belongs to a company (for professional use), or that is already in a leasing program. In theory the LPO can only be applied to a catamaran equipped for offshore sailing. If you are a European or Swiss resident and your catamaran is available in French waters, the French tax authorities allow, within the framework of the LPO, VAT to be charged at 10% instead of the normal 20% on rental. But note that this allowance is only relevant to the charter income, and not the purchase of the catamaran. To buy a catamaran without VAT you will have to set up a company, and therefore make the catamaran “work”… Getting back to our purchaser: there’s going to be a company which will buy the ...

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