Isle of Man YET Scheme Enhances Opportunities for Private Yacht Ownership

By Donald Edwards

08/01/2026

The Isle of Man has recently introduced its Yacht Engaged in Trade (YET) scheme, a development that positions the Island as a leading jurisdiction for owners of large private yachts seeking limited commercial charter opportunities. This initiative demonstrates the Isle of Man’s commitment to providing flexible yet compliant solutions for vessel ownership, while maintaining a robust regulatory framework.

What the YET Scheme Offers

The YET scheme allows privately registered yachts of 24 metres or above to undertake commercial charter operations for up to 84 days per calendar year, without the requirement to convert to full commercial vessel status. Yachts can seamlessly switch between private and charter use under the Isle of Man flag, provided all relevant safety, manning, and compliance obligations are met.

For owners utilising Isle of Man holding companies, partnerships, or trust arrangements, the scheme provides a regulatory basis to generate charter revenue, helping to contribute towards some of the costs of owning the vessel, while retaining established ownership structures. This ensures long-term strategic flexibility in managing both operational and wealth planning objectives. Importantly owners of yachts operated under YET do not need to sign charter agreements and pay VAT for their own use, as such use occurs when the yacht is registered and used as a private yacht. A yacht which maintains an EU VAT-paid status is eligible for the YET scheme, offering greater flexibility for use by EU guests, including under charter contracts.

Operational and Compliance Considerations

Owners and their advisers should be aware of several key points:

• Vessels must remain commercially compliant at all times, including adherence to class certification and relevant maritime conventions.
• Charter activity in EU waters requires careful VAT planning, local registration, and fiscal representation to ensure compliance with applicable EU tax laws.
• Proper documentation and structured administration are essential for smooth transitions between private and charter operations, with oversight of insurance, crew qualifications, and statutory requirements.

How Atla Group Can Help

Atla Group supports owners and advisers in structuring and managing yacht ownership within Isle of Man corporate and trust arrangements. Our expertise covers:

1. Ownership Structures: Advising on Isle of Man companies, trusts and foundations to hold yacht ownership, aligned with governance, succession, and confidentiality objectives.
2. Regulatory and Tax Filing: Helping clients adhere to VAT, customs, and maritime compliance, while ensuring structures accommodate charter revenue without compromising private use benefits.
3. Administration and Oversight: Coordinating statutory filings, trust and corporate administration, and operational compliance to reduce risk and maintain regulatory integrity.
4. Integrated Advisory Support: Connecting clients with maritime lawyers, yacht managers, and tax advisers for a seamless, compliant solution.

Conclusion

The Isle of Man YET scheme represents a significant opportunity for yacht owners seeking operational flexibility while preserving long-term ownership structures. With careful planning and professional guidance, owners can leverage charter opportunities to enhance vessel value without compromising governance or strategic objectives.

Atla Group’s team and their advisors can provide tailored advice and solutions to help clients navigate the YET scheme and optimise their yacht ownership arrangements. We also offer support on a wide range of Trust and Corporate solutions, why not visit our website atla.im for more details.

Contact Donald Edwards and Lyle Krause to discuss how this regime could be structured to suit your ownership and broader wealth planning goals.

Atla Fiduciaries Limited is a limited company registered in the Isle of Man with registered number 029711C and is licensed by the Isle of Man Financial Services Authority. The registered office of Atla Fiduciaries Limited is Ground Floor, Dorchester House, Belmont Hill, Douglas, Isle of Man, IM1 4RE. Directors: B Bielich, J McKenna, N Kelly, R Storey and D Edwards