What a yacht really costs per year

Ask any broker what a yacht costs to run and you will hear the same rule of thumb: about 10% of its value per year. Useful, memorable — and wrong in both directions. Before you sign anything, it is worth replacing the slogan with real budget lines.

The 10% rule and its limits

For a motor yacht of 15 to 25 metres kept in the Mediterranean and used a few weeks a year, annual costs do tend to land between 8% and 12% of value. The rule fails at the edges. A recent 12-metre under warranty, in a modest marina, can run on 5-6%. A twenty-year-old 24-metre with paid crew can absorb 15% or more, because costs track length, age and complexity — not the price you paid. That is the trap of the cheap older boat: the purchase price falls, the bills do not.

The berth: geography decides

Berthing is usually the largest single line, and the spread is dramatic. On the Riviera — Antibes, Cannes, Golfe-Juan — an annual berth for a 21-metre yacht costs roughly €35,000-70,000 when one exists at all, and summer visitor rates can pass €500 a night. The same boat in Brittany or Galicia might pay €8,000-15,000 a year. In between sit mainland Greece, Turkey and Tunisia, serious options for owners happy to open the season with a passage. Seasonal contracts (April to October) suit those who haul out every winter; annual contracts win if the boat stays afloat. Decide where the boat will live before you buy — no other choice moves the total as much.

Insurance

Comprehensive cover typically costs 1% to 1.5% of insured value per year: €4,500-6,500 for a €450,000 catamaran, €22,000-33,000 for a €2.2M flybridge. Premiums rise with cruising range, charter use and claims history, and ease with an experienced skipper's CV and a recent survey report.

Maintenance, wintering, antifouling

Routine upkeep — engine servicing, anodes, filters, polishing, the endless small jobs — absorbs 2-4% of value each year on a boat in normal use. Add the recurring appointments:

• Antifouling: haul-out, pressure wash and repaint every 12-18 months; €2,500-4,000 for a 12-metre, €8,000-15,000 for a 21-metre.
• Wintering: lift-out, storage ashore or under cover, engine winterisation; €3,000-10,000 in northern climates.
• Scheduled engine services: large diesels have four- and five-figure service milestones; check the hour counters against the maintenance schedule.

Crew: the 20-metre threshold

Below roughly 20 metres, most owners run the boat themselves with occasional professional help. Above it, insurers, systems complexity and sheer workload push you toward employment. A full-time Mediterranean captain costs €60,000-90,000 a year including social charges; add a deckhand-stewardess and you approach €150,000 before food, uniforms and training. Running costs do not climb smoothly with length — they jump at the crew threshold.

Depreciation, the invisible line

New production yachts commonly lose 25-35% of list price over the first three years, then 3-5% a year as the curve flattens. Nobody writes a cheque for depreciation, which is why buyers ignore it; yet if you sell after five years it is often the largest cost of all. Strong brands and documented maintenance slow the slide; heavy customisation accelerates it.

The hidden lines

• Electronics age like phones, not like hulls: plan a €15,000-50,000 refresh every 8-10 years.
• Exterior upholstery, canvas and teak survive about 5-7 Mediterranean summers.
• Surveys: €3,000-10,000 before purchase, then periodic surveys required by insurers.
• Tender and outboard, safety-equipment recertification, registration fees — and the first season's inevitable "while we're at it".

Two worked examples

A 21-metre flybridge worth about €2.2M, Riviera berth, crewed:

• Berth: €45,000
• Insurance: €28,000
• Maintenance, antifouling, lift-outs: €70,000
• Captain plus seasonal deckhand: €110,000
• Fuel, 150 engine hours: €35,000
• Reserve for electronics and cosmetics: €25,000

Total: about €313,000 a year — roughly 14% of value — before depreciation.

A 42-foot catamaran worth about €450,000, owner-run, based in Greece:

• Berth: €9,000
• Insurance: €5,500
• Maintenance and antifouling: €12,000
• Sails and rigging reserve: €4,000
• Fuel and miscellaneous: €6,500

Total: about €37,000 a year — roughly 8% of value.

Both numbers are realistic. Neither is "10%".

Cutting the bill

• Charter management: a managed programme can offset 30-60% of running costs, in exchange for wear and calendar constraints.
• Co-ownership: splitting fixed costs two or four ways works when the agreement is drafted by a lawyer, not sealed by a handshake.
• Port choice: wintering in Greece, Turkey or Tunisia rather than on the Riviera saves €20,000-40,000 a year on a 20-metre.
• Flag: registration affects VAT, crew rules and charter eligibility; take specialist advice before the purchase, because restructuring afterwards is expensive.

A yacht is not an investment, and the owners who enjoy theirs most are those who budgeted honestly on day one.