The investment deduction (IAB) under Section 7g of the German Income Tax Act (EStG ) is a tax instrument under German income tax law. It allows taxpayers in Germany (business owners, self-employed individuals, and persons with business income) to claim up to 50% of the estimated acquisition costs of a commercially chartered sailing yacht as a tax deduction.

You can find more information on this topic on the Nautic Alliance blog: "Yacht Investment Explained Simply"

Through the investment deduction (IAB) under Section 7g of the German Income Tax Act (EStG), you can deduct up to 50% of the net acquisition cost of a charter yacht used for commercial purposes from your taxable income—up to a maximum of €200,000 per business. This is possible up to three years before the actual purchase.

Calculation example:

For a recreational or series-production yacht with a net purchase price of €400,000, you’ll fully utilize the statutory maximum amount with an IAB of €200,000. With a personal top tax rate of, for example, 45% (including the solidarity surcharge), this results in a tax savings of up to €90,000.

If tax assessments from previous years are retroactively adjusted, the tax office will refund those taxes directly to your account. As a result, the amount of equity you actually need to purchase the yacht in this example is reduced from €400,000 to €310,000.

The prerequisite is that your business’s profit in the year prior to the formation of the IAB did not exceed €200,000 and that the yacht is chartered for commercial purposes. Always consult your tax advisor regarding the exact calculation.

Through the investment deduction (IAB) under Section 7g of the German Income Tax Act (EStG), you can claim up to 50% of the net acquisition cost of a charter yacht used for business purposes as a deduction from your taxable income—and you can do so as early as three years before the actual purchase.

For a purchase price of, say, €400,000 (net), the maximum IAB amounts to €200,000. Based on an average top tax rate of approximately 45%, this results in a tax savings of about €90,000. If tax assessments from previous years are retroactively adjusted, the tax office will pay this amount directly to you as cash. This reduces the amount of equity you actually need to purchase the yacht.

You can obtain specific information on this from your tax advisor.

Yes, that is generally possible. High-income employees can establish their own business (GmbH & CoKG) in consultation with their tax advisor. Through this business, the charter yacht is operated commercially, and the IAB is formed in accordance with legal requirements.

The prerequisite is the intention to generate long-term profits through the charter (intention to make a profit).

Yachten Meltl is an experienced yacht dealer with many years of expertise in purchase and charter models. Yachten Meltl advises clients on the selection and specification of new and pre-owned yachts from renowned shipyards such as Bavaria Yachts and Dufour Yachts. In addition, Yachten Meltl coordinates the entire purchase process and connects yacht investors with specialized operating companies for charter management.

Operational management is handled by the Nautic Alliance network, which includes established partners such as Pitter Yachtcharter and Sun Charter. The network charters approximately 600 yachts at locations in 7 countries throughout the Mediterranean region. They handle moorings, maintenance, upkeep, guest services, and commercial charter operations, so that the yacht investor incurs no operational expenses.

Generally speaking, yes—you can charter the yacht yourself at special rates. Depending on the charter model, you can also use a comparable model within the Nautic Alliance network in other beautiful sailing destinations in the Mediterranean for private vacation cruises at special rates.