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What is MYBA?
MYBA (The Worldwide Yachting Association) is the leading authority in luxury yacht charters, renowned for establishing the MYBA Charter Agreement-the industry’s most trusted and globally recognized contract for superyacht charters.It standardizes terms to protect both owners and charterers, ensuring clarity and legal compliance.

How the MYBA Contract Works?

1. Core Inclusions:

   • Base Charter Fee: Covers yacht hire, crew wages, basic consumables, and insurance (marine risk, third-party liability).

   • Equipment: Includes all water toys and operational gear.

2. Additional Costs:

   • APA (Advance Provisioning Allowance): Typically 30-40% of the charter fee, prepaid to cover variable expenses like fuel, food, docking, and special requests.

   • Extra Charges: Guest-specific costs ( premium beverages, excursions) are deducted from the APA, with refunds for unused funds.

3. Payment Structure:

   • 50% Deposit: Paid upon signing to secure the booking.

   • Balance: Remaining 50% paid post-charter, held in escrow until completion.

   • Security Deposit: Often required for potential damages, refundable post-inspection.

4. Key Clauses:

   • Cancellation: Penalties apply based on notice period ( 50% forfeiture if canceled within 60 days).

   • Breakdown/Substitution: Guarantees a replacement yacht if the original becomes unavailable.

   • Stakeholder Protection: Funds held in secure accounts to safeguard client payments.

5. Flexibility:

   • Special Conditions: Modifications to standard terms ( inclusive fuel hours, Wi-Fi) can be added to accommodate unique needs.

   • Regional Adaptation: Used globally, with adjustments for local regulations ( VAT, docking rules).

Why MYBA Matters?

• Legal Safeguards: Addresses maritime law, insurance, and dispute resolution comprehensively.

• Transparency: Clear terms for inclusions/exclusions, reducing ambiguity.

• Industry Standard: Adopted by top brokers and owners worldwide for its reliability.

A charter agreement ensures clarity, compliance, and risk mitigation for all parties.

Key elements include:

1. Parties & Scope: Defines responsibilities of the charterer, owner, and broker, along with the yacht’s specifications and charter period.

2. Payment Terms:

   • Deposit: Typically 50% upfront to secure booking, with balance due 1 month pre-charter.

   • APA: Advance Provisioning Allowance (30-40% of charter fee) for operational costs (fuel, food, mooring).

3. Cancellation Policy:

   • 60+ days: 30% penalty; <60 days: Full charter fee forfeited (exceptions for force majeure).

   • Travel insurance recommended to cover cancellations.

4. Operational Terms:

   • Security Deposit: Refundable post-charter if no damages.

   • Inclusions/Exclusions: Covers crew, insurance, and basic consumables; excludes taxes, fuel, and alternative berthing fees.

5. Compliance & Liabilities:

   • Vessel Condition: Requires pre/post-charter inspections to document damages.

   • Substitution Clause: Allows replacement with a similar or superior yacht if unavailable.

Value Proposition: Streamlines expectations, minimizes disputes, and ensures regulatory adherencefor a seamless luxury experience.

The Advance Provisioning Allowance (APA) is a prepaid fund covering variable expenses during a yacht charter, ensuring seamless operations and personalized service. Key aspects include:

• Purpose: Simplifies payments by covering fuel, food, docking, crew gratuities, and custom requests without mid-charter transactions.

• Calculation: Typically 30-40% of the charter fee, adjusted for itinerary, yacht size, and client preferences  (luxury brands, extended voyages).

• Payment: Paid upfront alongside the charter fee, managed via bank transfer to the broker or yacht management.

• Management:

  • Captain oversight: Tracks expenses, provides receipts, and adjusts allocations(fuel vs. amenities).

  • Transparency: Detailed spending reports and refunds for unused funds; excess costs settled post-charter.

• Value: Enables custom provisioning (e.g., premium cuisine, high-end beverages) while maintaining budget control and operational efficiency.

When you sign the MYBA charter agreement, you pay a deposit of 50 percent of the total charter fee by bank transfer. The remaining 50 percent, plus an Advance Provisioning Allowance (APA), any taxes, delivery or redelivery fees and any other agreed charges, is payable by bank transfer five weeks before the charter starts.

The onboard recreation equipment list is current but may change unexpectedly. If items become unavailable, the owner will strive to provide comparable alternatives.

Note that local regulations may limit personal watercraft use (e.g., Jet Skis) in certain areas. If your yacht isn’t an RYA training center, guests may need proper licensing.

Our brokers will clarify these details and guide you through all requirements during your trip planning!

The standard rule based on a week-long yacht charter.

• Range: 5–20% of base charter fee, depending on region/service (10–15% Mediterranean, 15–20% Caribbean/US).

• Calculation Basis: Applied to net charter fee (excluding VAT/APA), with crew size and charter length influencing final amounts.

Key Factors:

• Service Quality: Adjust within range based on satisfaction ( 10% standard, 15–20% for exceptional service).

• Cultural Norms: Higher expectations in US/Caribbean vs. Europe ( 15–20% vs. 5–10%).

• Crew Distribution: Tips divided equally among all crew, including less visible roles (chefs, engineers).

Payment & Logistics:

• Timing: Given at charter’s end, directly to the captain for equitable distribution.

• Methods: Cash (preferred), wire transfer, or broker-managed escrow.

• Transparency: Request written guidelines from brokers pre-charter to align expectations

We strongly advise securing Cancellation & Curtailment Insurance to safeguard your charter investment against unforeseen disruptions. Additionally, ensure all guests are covered by Personal Accident, Medical Insurance, and Personal Effects Insurance to protect against injuries, theft, or property damage.

For comprehensive protection, consider Charterer’s Liability Insurance to cover third-party risks.

Our brokers will provide tailored guidance on optimal coverage options based on your itinerary and group needs.

Charter rates are structured on a weekly basis for yacht hire. Extended charters beyond seven days are calculated pro-rata, with the weekly rate divided by seven and multiplied by the total charter duration.

For shorter charters (under seven days), a premium rate typically applies, derived by dividing the weekly rate by six and multiplying by the charter days.

High season pricing governs peak periods such as July–August, December holidays, and major events ( Monaco Grand Prix, Cannes Film Festival).

Low season rates apply to all other dates, though seasonal definitions may vary by region.

The yacht charters Value Added Tax (VAT) is a jurisdiction-specific consumption tax applied to the charter fee, calculated based on the departure country’s rate and itinerary.

Key aspects include:

1. Application:

   • Departure Country: VAT is applied to the full charter fee at the rate of the country where the charter begins ( 20% in France, 22% in Italy).

   • Delivery/Redelivery Fees: May also attract VAT if incurred within taxable jurisdictions.

2. Payment:

   • Timing: Due 30 days pre-charter alongside the final balance and APA.

   • Transparency: Detailed in the MYBA Charter Agreement’s "Special Conditions" or a VAT addendum.

3. Reductions:

   • Non-EU Waters: Time spent outside EU territorial waters may qualify for pro-rata VAT reductions, verified via GPS/AIS data.

   • Exceptions:

     • Greece: Lower rates (5.2–13%) for licensed charters over 48 hours.

     • Malta: Reduced effective rates for international itineraries.

     • France: Post-2020, reductions require proof of time outside EU waters (previously 50% flat rate).

4. Key Considerations:

   • Broker Guidance: Experts clarify jurisdiction-specific rules and ensure compliance.

   • Documentation: Itineraries and logbooks substantiate VAT calculations.

   • Separate Contracts: Fuel/provisioning may be billed separately to optimize VAT recovery.