- It was France that led the way with the launch in 1976 of the lease with purchase option, a product designed essentially for private individuals, offering them a truly modern solution for financing their boats.
 
- Leasing offers the possibility of a fixed-rate partial exemption of VAT on the instalments.
 
 
- The French leasing system is based on the category of fitting-out and approval of the boat as marked on the Certificate of Registry. The VAT rate is 19.60%. The different VAT rates applicable are as follows:
 

The partial VAT exemption on the instalments for boats financed by lease with purchase option in France. Concerning VAT, the tax rules state that the lease of a boat is taxable only on a fixed-rate basis depending on the category of navigation and approval of the boat marked on its Certificate of Registry.
 
Boat owners have a choice between two possible solutions:
 
- Fixed-rate calculation: the tax rules are simply based on the category in which the boat has been approved. Thus, if the boat is fitted out and approved in category 1, the tax reduction is 50%, thus giving a VAT rate on the instalments equal to 9.80%.
 
Actual use: VAT is applied to the instalments on the basis of actual navigation time in the territorial waters of the European Union.
 
 

The Italian leasing system, on the other hand, is based on the size of the boat, and the VAT rate is 20%. The different VAT rates applicable are as follows :

The flags which currently allow interesting, legally acceptable financial arrangements are: (list subject to modification)
 
- French,
- Italian,
- British,
- Spanish,
- Madeira and Luxemburg in certain cases, for companies.

Durations and down-payments:
 
- From 4 years to 12 years (depending on the bank)
- From 25 to 50% of the purchase price incl. VAT. 
 
- Who can apply for financing?
 
Private individuals and companies from the European Union.