Taxation of Yachts and Private Jets in Italy: A Guide for Expats and HNWIs

Relocating to Italy is an exciting step for high-net-worth individuals (HNWIs) and international expats looking to enjoy the Mediterranean lifestyle. However, owning or operating a yacht or a private jet in Italy comes with specific tax and compliance obligations. At Knotted.it, we guide newcomers through these complex rules, ensuring that your Italian dream remains smooth sailing.

Understanding the Italian Framework for Luxury Assets

When you register or moor a yacht in Italy, or base a private jet in an Italian airport, you become subject to a series of national and EU regulations.Key points include:

• Luxury Tax (Imposta erariale sui mezzi di trasporto): This applies to yachts, superyachts, and private aircraft above certain sizes or engine capacities.

• VAT on Purchase and Leasing: Italian and EU rules determine how VAT is calculated on the acquisition or charter of yachts and jets.

• Registration and Flagging: Choosing whether to flag your vessel or aircraft in Italy or abroad has direct tax and compliance implications.

At Knotted.it, we help expats understand the difference between registering in Italy versus keeping an international flag, balancing convenience, costs, and exposure to local taxes.

Yacht Taxation in Italy: Mooring, Use, and Leasing

Italy’s coastline, stretching from the Ligurian Riviera to the hidden bays of Puglia and the islands of Sicily and Sardinia, makes it one of Europe’s premier destinations for yacht owners. Yet, alongside the glamour of Mediterranean cruising, there are important tax considerations that every expat or high-net-worth individual should understand. When a yacht is based in Italian waters, or when its owner is an Italian tax resident, several fiscal rules come into play. The annual state tax on pleasure boats, often referred to as the “luxury tax,” applies to vessels over a certain size or engine capacity, and its amount increases in proportion to the yacht’s length and power. This levy is due regardless of whether the yacht is privately owned or leased, making it essential to plan ownership structures with care.

Mooring a yacht in an Italian marina also entails indirect taxation. Berth contracts and related services are usually subject to VAT, meaning that the choice of port — from the fashionable harbours of Portofino and Porto Cervo to the quieter marinas of the Amalfi Coast — can influence the final cost of keeping a vessel in Italy. Many HNWIs explore leasing solutions, often through an Italian or European company, which can create opportunities for partial VAT optimisation on charters if the yacht spends a significant amount of time in international waters. However, the effectiveness of these arrangements depends on proper documentation and strict compliance with European Union maritime and tax regulations. At Knotted.it, we work closely with maritime lawyers and tax specialists to help clients balance their love for yachting with the need to manage fiscal exposure, ensuring that every aspect of ownership, from registration to day-to-day use, is aligned with Italian and EU rules.

Private Jet Taxation and Operational Costs

For expats and HNWIs who rely on private aviation, bringing a jet into Italy or basing one at an Italian airport introduces its own set of fiscal and operational dynamics. Italian law imposes an annual charge on private aircraft, calculated according to the weight of the plane, and this tax applies whether the aircraft is personally owned or operated through a corporate structure. Beyond the direct levy, owners must also consider the cost of fuel and potential excise duties, particularly for non-commercial flights, as well as landing and handling fees, which vary from one airport to another — from Rome Ciampino and Milan Linate to smaller hubs such as Olbia or Florence.

Operating a private jet in Italy also involves human resource and compliance elements that can have a tax impact. If pilots, cabin crew, or ground staff are employed locally, their salaries may trigger social security contributions and payroll taxes, which need to be coordinated carefully with any operating company or family office managing the aircraft. Some owners choose to register their jet in another jurisdiction, combining it with an Italian base for convenience, but this approach requires meticulous planning to avoid conflicts between different sets of aviation and customs rules. At Knotted.it, we help clients design an aviation strategy that integrates with their personal residency and wealth planning, allowing them to enjoy the freedom and efficiency of private air travel while remaining fully aligned with Italian tax requirements. By addressing these issues before relocating or before repositioning an aircraft to Italy, expats can ensure that their private jet is not only a symbol of mobility and prestige but also an asset managed with financial prudence and legal certainty.

Residency and Ownership: How They Interact

For many expats moving under the Italian Flat Tax Regime (100k or 200k), or considering the Golden Visa, the way you own yachts and jets can affect your tax exposure:

• Assets held through trusts, companies, or special purpose vehicles may enjoy different treatment.

• If you relocate to Italy and become a tax resident, worldwide assets (including yachts and aircraft) may need to be reported under the RW form for foreign holdings.

At Knotted.it we offer wealth planning solutions that integrate these aspects, helping HNWIs protect their lifestyle assets without compromising fiscal efficiency.

Practical Tips from Knotted.it

• Plan your arrival: before relocating, review the registration and leasing of your yacht or jet.

• Keep documentation clear: Italian authorities value transparency on ownership and usage.

• Consider complementary services: concierge management, mooring support, and aviation operations can be outsourced to trusted partners.

Knotted.it specialises in advising expats, entrepreneurs, and wealthy families who want to enjoy Italy’s lifestyle while staying fully compliant with tax and customs rules.

Take the Next Step with Knotted.it

If you are considering applying for Italy’s Golden Visa and investing in a luxury property, the right advice makes all the difference. At Knotted.it, we combine immigration know-how, tax expertise, and a deep understanding of Italy’s premium real estate market. Whether you are drawn to a villa in Tuscany, a penthouse in Milan, or an exclusive seafront home in Sardinia, we can guide you through every step — from eligibility checks and property scouting to fiscal planning and lifestyle support.

📲 WhatsApp: +41 76 771 30 22

📧 Email: info@knotted.ch

Contact our team today to schedule a personalised consultation and discover how to secure Italian residency while maximising the value and enjoyment of your investment.