15 Best Offshore Banks for Yacht Financing

Yacht finance is its own ecosystem. The numbers are bigger, the collateral floats, and the paperwork runs through maritime registries instead of land registries. Go offshore and the puzzle adds another layer: SPVs in yacht-friendly jurisdictions, flag-state rules, VAT exposure if you cruise Europe, and lenders who quietly specialize in all of the above. I’ve arranged and reviewed enough superyacht and large-yacht deals to know that picking the right bank can make the difference between a smooth launch and a six-month slog. Below is a practical guide to how offshore yacht financing really works, plus my short list of banks that handle it well.

How Offshore Yacht Financing Works (in the real world)

If you’ve financed property or a jet, the broad concepts will feel familiar. The devil is in the structuring.

Ownership structure: Most lenders prefer the yacht to be owned by a special purpose vehicle (SPV) in a stable, maritime-savvy jurisdiction—commonly Malta, Monaco, Luxembourg, Cayman Islands, or the Marshall Islands. The bank takes a mortgage over the vessel and a pledge over the SPV’s shares.

Security package: Expect a first preferred ship mortgage, assignment of insurances (including Mortgagee’s Interest Insurance, MII), assignment of charter income (if any), and sometimes a personal guarantee or a pledge over an investment portfolio (Lombard lending) to boost leverage or reduce pricing.

Typical terms:

Loan-to-value (LTV): 40–60% for yachts over 30m; 50–70% for production yachts under 24m if credit is strong and flag/class are clean.

Pricing: For 2025, I’m seeing Euribor/SOFR + 2.50–5.00% depending on size, AUM, and complexity. Big, clean UHNW files can price tighter.

Tenor: 5–10 years for used yachts; up to 12 years for new builds, often with a balloon.

Fees: 0.5–1.5% arrangement, plus legal/survey costs. Budget €30k–€150k in transaction costs for superyachts (more for newbuilds).

Newbuilds vs. pre-owned: Newbuild financing usually mirrors yard stage payments with performance bonds and refund guarantees; used yachts lean on surveys, class records, and an independent valuation.

Chartering: Some banks allow a limited amount of charter income to support servicing, but most will underwrite your private-use ability to pay. Heavy reliance on charter revenue pushes you toward specialist lenders or higher margins.

Flags and registries: Malta, Cayman, Marshall Islands, Luxembourg (via Belgian or Luxembourg ownership), and Monaco are frequent winners because registries are experienced, and lenders know how to perfect security there.

Tax/VAT: If you cruise the EU and you’re EU-resident, VAT must be addressed—either paid on hull value or managed via commercial chartering (with strict compliance). Non-EU owners often use Temporary Admission to cruise up to 18 months VAT-free, but there are rules about who can be onboard and where the yacht is based.

A conservative rule of thumb: all-in annual running costs are 8–12% of the yacht’s value for 30m+ vessels (crew, insurance, maintenance, berthing, fuel). Crew is usually 35–50% of the operating budget, hull insurance roughly 0.8–1.2% of insured value, and yard periods sneak up on you if you don’t reserve for them.

What to Look for in an Offshore Yacht Lender

Jurisdiction fit: Does the bank actively lend on your chosen flag and SPV jurisdiction? If not, expect delays while they “get comfortable.”

Appetite by size: Some banks love €2–€10m loans for 18–28m yachts; others only wake up above €20m.

AUM linkage: Many private banks price better and lend higher LTVs if you book assets under management with them.

Newbuild capability: Financing stage payments is a different skillset from writing a simple term loan at delivery.

Charter policy: If you need charter income factored in, filter for lenders that allow it and understand operating structures.

Speed and certainty: If you’re buying on a short timeline, you want a lender with an internal legal template for your registry and a track record closing similar boats.

Common mistakes:

Picking a flag your lender struggles to mortgage against.

Underestimating transaction costs (legal, survey, KYC) and timeline.

Assuming charter income will “carry” the loan.

Taking FX risk in the wrong direction (borrowing in EUR for a USD-priced asset with a USD income profile).

Forgetting the VAT angle when cruising in EU waters.

Below are the lenders I regularly see executing yacht loans offshore with competence. Their sweet spots vary—match your deal to the lender rather than forcing it.

1) Barclays Private Bank (Monaco, Channel Islands, Isle of Man)

Barclays runs a well-established Yachting & Aviation Finance team, with coverage out of Monaco and the Crown Dependencies. They’re comfortable with both newbuilds and refinances, and they know how to work with popular flags like Malta, Cayman, and Marshall Islands.

Sweet spot: €5m–€100m; 24–80m yachts; UHNW clients with portfolios.

Why choose them: Strong cross-border capability, clear documentation, and competitive pricing if you place AUM.

Watch-outs: They prefer clean, classed boats and reputable yards. Charter-heavy business models get scrutinized.

Practical note: I’ve seen Barclays shave 50–100 bps off a margin when clients move meaningful assets to Private Bank discretionary mandates.

2) BNP Paribas Wealth Management (Monaco)

BNP Paribas is one of the most active superyacht lenders in Monaco, with decades of market presence and a specialized team covering EU and non-EU flags. They’re comfortable structuring newbuild financing with staged advances backed by shipyard guarantees.

Sweet spot: €3m–€75m; superyacht newbuilds and refits.

Why choose them: Strong processes for European builders, realistic timelines, and legal resources for cross-border closings.

Watch-outs: Expect conservative LTVs on very custom or older vessels; they will want surveys and robust insurance packages.

3) CA Indosuez Wealth Management (Monaco, Luxembourg, Switzerland)

Indosuez focuses on bespoke solutions for private clients, including yachting. They integrate credit with wealth management and are adept at SPV/share pledge structures through Monaco or Luxembourg.

Sweet spot: €5m–€50m; owners who also want portfolio lending or FX solutions.

Why choose them: Seamless tie-in with wealth planning, hedging, and multi-jurisdiction legal support.

Watch-outs: Relationship-led pricing—bring assets for the best terms.

4) Société Générale (SGPB Monaco and CGI Finance)

Société Générale covers the market on two fronts: SGPB Monaco for UHNW/superyacht lending and CGI Finance (SG group) for retail and mid-market boat loans across Europe.

Sweet spot: SGPB Monaco at €5m–€40m; CGI Finance from ~€100k to low millions for production boats.

Why choose them: Ability to finance a wide range of yacht sizes; fast decisioning on standard models via CGI.

Watch-outs: For superyachts, they’re selective on charter-heavy operations and often insist on bullet/balloon structures for older yachts.

5) EFG Bank (Monaco, Switzerland)

EFG’s specialized lending desk regularly includes yacht loans alongside aircraft and real estate. They’re good at working with complex ownership structures and will often accept a blended security package (boat + portfolio).

Sweet spot: €3m–€40m; complex SPV setups with global asset bases.

Why choose them: Flexible underwriting and genuinely private-bank service.

Watch-outs: Pricing aligns with relationship depth; they’ll ask for clear Source of Wealth documentation early.

6) J. Safra Sarasin (Monaco, Switzerland)

J. Safra Sarasin has a reputation for bespoke private credit solutions. Their Monaco team understands maritime mortgages and can align a yacht loan with sustainability preferences (for example, when owners invest in greener propulsion or refit).

Sweet spot: €5m–€30m; privately-owned yachts with conservative leverage.

Why choose them: Discreet execution and willingness to look at nuanced credit cases backed by AUM.

Watch-outs: They’re methodical; build in time for due diligence and approvals.

7) Banque Havilland (Luxembourg, Monaco)

A boutique private bank offering specialist asset financing, including yachts and aircraft. They’re nimble compared with larger houses and comfortable lending to SPVs domiciled in Luxembourg, Monaco, and selected offshore centers.

Sweet spot: €3m–€25m; UHNW families who value speed and tailored covenants.

Why choose them: Short decision lines and pragmatic lawyers who know registry nuances.

Watch-outs: Pricing is relationship-driven; they like additional banking business.

8) Butterfield (Bermuda, Cayman, Guernsey)

Butterfield’s “specialty lending” includes yachts, making it a go-to in the Caribbean and Atlantic offshore triangle. They’re particularly convenient for Cayman or BVI structures and US-dollar loans.

Sweet spot: $2m–$30m; Caribbean-based or US-linked ownership.

Why choose them: Deep knowledge of Cayman and Bermuda registries; straightforward collateral packages in USD.

Watch-outs: If your cruising is EU-heavy and you need EUR funding, shop both sides—USD can still work with FX hedging, but check your income currency and charter plans.

9) Nedbank Private Wealth (Isle of Man, Jersey, Guernsey)

Nedbank PW is strong in marine and aviation finance for HNW clients. They’re efficient on 15–35m yachts and understand the Crown Dependencies, UK builders, and common SPV setups.

Sweet spot: £1m–£20m; production and semi-custom yachts.

Why choose them: Practical underwriting, sensible documentation, and a team that actually picks up the phone.

Watch-outs: Less suited to very large (>50m) custom superyachts unless there’s significant AUM.

10) Lombard (NatWest Group) – Marine Finance (Channel Islands, Isle of Man, UK)

Lombard is a mainstay for boat and yacht finance, including offshore deals via the Crown Dependencies. They move quickly on well-known brands and models.

Sweet spot: £250k–£15m; 12–35m production/semi-custom yachts.

Why choose them: Speed and standardized processes; they know the marine space inside out.

Watch-outs: Older vessels or exotic flags can mean more conservative LTV or additional surveys.

11) Investec (Channel Islands/UK)

Investec’s asset finance arm is comfortable with luxury assets, including yachts. Their entrepreneurial client base means they’ll consider non-standard income profiles with the right security mix.

Sweet spot: £1m–£30m; owner-operators and entrepreneurs.

Why choose them: Flexible deal-making, quick term sheets, and sensible covenants.

Watch-outs: Expect robust KYC and a clear repayment story if relying on liquidity events.

12) UBS (Monaco, Switzerland and global)

UBS doesn’t market “yacht loans” on retail pages, but their private bank absolutely arranges bespoke credit against marine assets—often paired with Lombard lending. If you already house large AUM with UBS, this can be one of the most efficient paths to finance.

Sweet spot: €10m+; UHNW with substantial AUM at UBS.

Why choose them: Pricing power through portfolio relationship and ability to execute across multiple jurisdictions.

Watch-outs: They prefer first-class collateral (recent build, solid class/maintenance) and conservative leverage if not cross-collateralized.

13) Emirates NBD (UAE)

For GCC-based owners, Emirates NBD offers yacht finance with local expertise—handy if the yacht is Dubai/Abu Dhabi-based or you want AED/USD funding tied to GCC cash flows.

Sweet spot: AED 1m–30m+; 12–40m yachts based in UAE/GCC.

Why choose them: Local valuation networks, familiarity with regional registries and marinas.

Watch-outs: If you plan to base and charter in the Med, ensure the structure, flag, and VAT position will also pass muster with European authorities and insurers.

14) Bank of Valletta (Malta)

Malta remains a favored flag and leasing hub. BOV’s corporate and private teams are familiar with Maltese yacht SPVs, mortgages, and registry procedures, making them a useful regional partner.

Sweet spot: €500k–€10m; Malta-flagged yachts and EU cruising profiles.

Why choose them: Registry proximity, local legal familiarity, and coordination with Maltese service providers.

Watch-outs: For larger superyachts or complex charter structures, expect them to syndicate or require strong guarantees.

15) Citi Private Bank (global)

Citi’s private bank builds bespoke lending around UHNW clients’ global assets. While they’re more famous for aircraft finance, they will look at large yacht loans where the relationship supports it.

Sweet spot: $10m+; complex multi-jurisdictional ownership with significant AUM.

Why choose them: Cross-border reach, integrated capital markets/FX, and structuring firepower for newbuilds or refits.

Watch-outs: Very relationship-led. Without a meaningful private banking relationship, you’ll be pointed elsewhere.

Quick Comparison at a Glance

Fastest on standard deals: Lombard, Nedbank PW, Investec

Best for Monaco and Med superyachts: Barclays, BNP Paribas, CA Indosuez, SGPB

Best for Caribbean/Atlantic structures: Butterfield

Best when you’re placing AUM: UBS, Barclays, CA Indosuez, EFG, J. Safra Sarasin, Citi PB

Regional specialists: Emirates NBD (GCC), Bank of Valletta (Malta/Med)

Step-by-Step: Getting to Yes

I like to break the process into four phases. Timelines assume a clean file and responsive counterparties.

1) Pre-file (1–2 weeks)

Define budget and structure: SPV jurisdiction, flag, and cruising region. Decide currency (EUR vs USD) based on income and charter profile.

Assemble a pack: Passport/KYC, Source of Wealth, asset & liability statement, CV, resumes for key staff if chartered, draft Memorandum of Agreement (MOA) or letter of intent, preliminary insurance quotes, and if used, the latest survey/class records.

2) Indicative terms (1–2 weeks)

Approach 2–3 suitable lenders (not 10). Share enough detail for a realistic indication: builder, model, age, price, proposed LTV, flag, and SPV.

Compare term sheets on apples-to-apples basis: LTV, margin, amortization schedule, covenants (usage, charter caps), requirements for AUM, and fees.

3) Credit & docs (3–6 weeks)

Full survey/valuation: For used yachts, a condition and valuation survey plus sea trial. For newbuilds, yard due diligence, build contract review, and a drawdown schedule tied to milestones.

Legal workstreams: SPV incorporation, mortgage and deed of covenants drafts, share pledge wording, assignments of insurance and charter income. Registry checks for mortgage registration.

Insurance binding: Hull & machinery, P&I, and MII naming the lender.

4) Closing & post-close (1 week)

Mortgage registration at the flag registry.

Funds flow: lender to seller or yard escrow against title documents.

Post-completion: deliver class certificates, insurance endorsements, and any outstanding conditions subsequent.

Total: 6–10 weeks is realistic for clean used boats; 10–16 weeks for newbuilds requiring banking conditions in the build contract.

Example Scenarios

30m semi-custom, €8m purchase, private use

LTV: 60% (€4.8m loan)

Terms: 3M Euribor + 3.0%, 7-year amortization with 20% balloon

Annual debt service: roughly €720k–€780k (rate dependent)

OPEX: €800k–€1m annually

With €10m AUM placed, margin could tighten by 50–75 bps.

45m steel newbuild, €30m, staged payments

Facility: Up to 50% LTV during construction, rising to 55% at delivery

Security: Builder refund guarantees, assignment of build contract, step-in rights

Pricing: SOFR + 2.75% with $15m AUM pledged

Timeline: Credit approved pre-contract; funds disbursed against milestones, final tranche at delivery with mortgage registration.

22m production yacht, €3m used, light charter

LTV: 65% via Lombard/CGI, fixed/variable options

Charter income: Lender underwrites personal ability to service; may cap charter days at 12–16 weeks/year

Insurance: Charter endorsement required; higher P&I cover.

Documentation Checklist (what lenders actually ask for)

KYC & Source of Wealth: High-resolution passport copies, proof of address, detailed SoW narrative, liquidity proofs.

Corporate: SPV formation docs, UBO declarations, board resolutions, register of members.

Asset: MOA/build contract, surveys (hull, machinery, rig if applicable), class certificates, maintenance logs, hour meters.

Legal: Title chain, deletion certificate (if changing flag), mortgage and deed of covenants, share pledge agreement.

Insurance: Hull & machinery certificate, P&I, MII; lender named as loss payee.

Financials: Personal statements, tax returns where relevant, cashflow forecasts if chartering.

Pro tip: A clear, credible SoW saves weeks. Vague or heavily redacted wealth narratives are the number one cause of closing delays in my experience.

Costs, Rates, and LTVs in 2025

Rates move, but typical ranges I’m seeing:

LTV:

24–35m, <10 years old: 55–65%

35–60m, <10 years old: 45–60%

Older than 10 years: -5–10% from above, or bullet structures with lower leverage

Margins:

With AUM: Euribor/SOFR + 2.25–3.50%

Without AUM: +3.25–5.00%

Fees:

Arrangement: 0.5–1.0%

Legal: €25k–€100k (can be higher for multi-jurisdiction)

Survey/valuation: €10k–€40k for large yachts

Registry/mortgage: €5k–€20k depending on flag and complexity

Flag, VAT, and Chartering: Avoid the Traps

Flag choice: Align your lender, insurer, and itinerary. Malta and Cayman are popular for a reason: predictable mortgage registration and international recognition. Marshall Islands is another workhorse for larger yachts.

VAT in EU waters: If the UBO is EU-resident and the yacht is for private use, expect to pay VAT on the hull value or structure a compliant commercial operation (which brings crewing, safety, and reporting obligations). Temporary Admission is powerful for non-EU residents, but comes with strict usage rules.

Charter income: Lenders may accept limited charter income, but they’ll haircut projections—assume 50–60% of a broker’s glossy schedule. Build your serviceability without relying on a perfect charter season.

Crew and safety: If operating commercially, MLC and flag-state requirements for crew qualifications and manning apply. Lenders may require evidence of compliance and a professional management agreement.

How to Choose Among the 15

If you’re Monaco-based with a strong securities portfolio and want a clean, private deal on a 40m: Barclays, BNP Paribas, or CA Indosuez are first calls.

If your SPV is Cayman or Bermuda and you’re USD-centric: Butterfield is pragmatic and quick.

If speed on a 20–30m production yacht matters: Lombard, Nedbank PW, or Investec can be very efficient.

If you’re a UHNW consolidating banking relationships: UBS, EFG, J. Safra Sarasin, or Citi PB can deliver pricing and structuring advantages.

If GCC-based with a local boat: Emirates NBD has the local processes and valuers you need.

If Malta flag/lease is central to your plan: Bank of Valletta aligns neatly with the registry.

Negotiation Levers That Actually Work

AUM placement: Move assets and ask for a tiered margin grid that steps down with AUM milestones or after clean payment history.

Covenant calibration: If you need higher charter days, trade for a lower LTV or a higher DSCR covenant and commit to professional management.

FX hedge support: If price and income are in different currencies, request bank-assisted hedging with embedded options to protect upside.

Survey scope: Agree the scope early and pick a surveyor acceptable to both parties to avoid rework.

Red Flags That Spook Credit Committees

Unclear Source of Wealth or reliance on sanctioned markets.

Very old or heavily modified yachts without recent refits or class certifications.

Vague itineraries that scream VAT trouble in the Med.

Thin liquidity outside the asset, especially for charter-reliant plans.

Builder risk on newbuilds without bankable refund guarantees.

Final Pointers from the Trenches

Start the insurance conversation on day one. Mortgagee’s Interest Insurance and P&I endorsements can hold up closings if left late.

Pick your flag with your lender and tax counsel at the table. Change it midstream and you’ll blow timelines.

Over-communicate on surveys and remedial works. Lenders are allergic to surprises during sea trials.

Budget with reality: debt service + 10% of hull value for OPEX is a safer planning anchor at 30–50m than the optimistic numbers often pitched.

Yacht finance offshore isn’t exotic if you work with banks that do it every week. Match your yacht, flag, and objectives to a lender’s sweet spot; bring a clean file; and don’t be shy about trading relationship depth (AUM, broader banking) for better terms. The fifteen banks above are where I’d start the conversation for a serious, well-run deal.