Connect with us
Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

LIFESTYLE

Art on superyachts: what to do when one luxury asset houses another

Art on superyachts: what to do when one luxury asset houses another 39

The global luxury goods industry, which includes high-value items such as superyachts and fine art, has been growing steadily for decades. Yet, one of the main risks associated with ‘passion investing’, or investing in items of desire, is that the high levels of adoration can often override rational decision-making.

While emotions are an essential part of what makes us human, there can be perils to following your heart when it comes to investing, especially when one luxury asset houses another. For example, many superyacht owners are also art collectors, often displaying their works of art aboard their boat. Even though the value of the art can often outweigh the value of the yacht, many of the ultra-wealthy fail to protect their most prized possessions from the likes of creditors, criminal activity or other catastrophes that come with being out at sea. This results in the loss of precious art, and ultimately, of millions of pounds.

As such, when purchasing luxury assets, it is important to apply the same asset protection, tax and legal considerations that you would usually apply to a business or real estate investment.

TAX CONSIDERATIONS

It is crucial to know the tax status of your yacht and art collection, as well as how different tax authorities may treat it. While the rules can be complex and vary depending on where you are travelling to and from, one of the main tax concern for art is import VAT. For example, in when entering the EU, the appropriate import VAT rate will depend on which country the art is first imported through. Once your yacht and its contents enter the EU, it is free to move, provided it does not qualify as cultural property.

LEGAL CONSIDERATIONS

While many art collectors use their superyachts as floating art galleries, this decision can carry hidden risks when sailing to multiple destinations. Many countries have strict laws to protect their cultural property, so you may encounter legal issues if you’re moving important artworks from one country to another. Often, an export licence is required. However, it is worth noting that if a country feels the art is of particular importance, this may be denied.

ASSET PROTECTION

If you’re a yacht owner, you’ve probably built up a complex portfolio of assets that cross international borders. As such, you’ll need to protect your lifestyle and the fruits of your labour, worldwide. All while managing the risks to preserve the value of your portfolio.

HERE TO HELP

At Turner Little, we have a wealth of experience in asset protection and know the importance of securing your high-value portfolio from threats, including creditors, divorce, bankruptcy and more. The key is to plan now to protect for later, so we work tirelessly to provide bespoke solutions that work for you. Speak to a member of our specialist team today.

 

Continue Reading