# How to settle a cross-border private jet or yacht import payment How payment and import considerations combine when a high-value vessel or aircraft crosses borders, and how funds settle cleanly. --- ## How to settle a cross-border private jet or yacht import payment A private jet being ferried from its Swiss registry to a U.S. buyer, or a superyacht sailing out of a Palma de Mallorca yard to a new owner in Florida — these are not unusual transactions, but they are among the most technically demanding closings a broker or advisor will ever work through. The payment is not just a wire. It is an event that has to land in precise coordination with deregistration, customs clearance, title transfer, and in the aircraft case, an FAA fly wire. Getting it wrong costs weeks and can unravel a deal worth eight or nine figures. This article covers how the payment mechanics and import logistics interconnect for cross-border vessel and aircraft acquisitions — the sequencing, the friction points, the tax exposure by jurisdiction, and how a professional structures the money flow so that everyone gets paid cleanly when the deal actually closes. ## Why a cross-border import is fundamentally different from a domestic transaction When a buyer acquires a yacht or jet already registered and located in their home jurisdiction, the closing mechanics are complex but self-contained. The title changes, the money moves, and the registration is updated. The asset stays where it is. The import transaction is a different animal entirely. Importing a yacht internationally requires customs clearance, safety certification, and payment of duties and VAT in most countries, and those requirements vary based on vessel use, origin, and whether the import is temporary or permanent. The same logic applies to aircraft, compounded by the FAA's airworthiness framework. You are not just buying an asset — you are simultaneously extricating it from one country's regulatory system and threading it into another's. Every one of those steps has a cost, a timeline, and a dependency on the payment itself. Importing a yacht involves multiple regulatory layers — customs, maritime, safety, and tax authorities — and inadequate preparation can lead to severe consequences. A common misconception is that payment alone grants entry: customs demands procurement contracts, customs declarations, and approved declared values. The broker or advisor who understands this controls the deal. The one who doesn't ends up managing a crisis at the port. For aircraft, the sequencing is even tighter. When it comes to business aircraft, there are two import processes to consider: one through U.S. Customs and the other through the FAA. Both must be completed, in the right order, before a single flight can legally occur on U.S. soil. Neither waits for the other, and neither is triggered by the purchase agreement alone — they are each triggered by events that have to be choreographed around the money. ## The payment sequence for an aircraft import into the United States ### The purchase agreement as the closing map A well-drafted purchase agreement should be the road map to the transaction. It should set forth the chronology of the closing and import process, and identify who will pay for each step. The purchase agreement should clearly specify who must pay for the cost of the importation and assign responsibility for either the correction or installation of airworthy items necessary to allow the aircraft to be registered in the United States. This matters enormously from a payment standpoint. A Gulfstream sourced from a European registry may arrive requiring modifications to meet FAA standards. When you have a foreign-registered airplane, it may have equipment on it that has not been certified in the United States. A U.S. Designated Airworthiness Representative (DAR) will not certify an airplane that has not met all FAA requirements — and one aviation law firm worked with a client to acquire a Gulfstream that had already received around $1 million worth of modifications to meet certification requirements in the UK. The contract must stipulate who bears that exposure before a single dollar moves. ### Funds in place before deregistration starts This is the single most critical sequencing rule in an aircraft import. The purchase agreement should indicate when the full purchase price has to be held and when all of the documents can be released for filing. The deregistration process from the country of foreign registry should not start until all funds are secured and all documents necessary for recording the sale are properly submitted at both the FAA and as required in the country of export. The reason is irreversible exposure. Once the plane is deregistered, its former registry no longer has jurisdiction over it, so any paperwork that is needed — such as an export certificate of airworthiness — also needs to be in hand. And critically, if customs is overlooked, it will be too late to fly the plane back out of the country and re-import it through customs, because the plane cannot fly after deregistration, and the penalties for failure to comply with customs can be staggering. Put plainly: if the deal falls apart after deregistration has been initiated and before U.S. registration is confirmed, you have an aircraft that cannot legally fly anywhere. The professional managing the closing bears the reputational weight of that outcome. The contract and the payment timing are the only protection. ### The deregistration-to-fly-wire window Once the buyer's funds are confirmed and documents are filed, deregistration can commence. The FAA receives notice of the deregistration and provides it to the escrow agent. Depending on the exporting country, this can happen the same day or up to a couple of weeks later. After that, the clock runs. The FAA treats aircraft entering the United States from a foreign registry as a priority and a Temporary Certificate of Aircraft Registration — known as the "fly wire" — is typically issued within one to two days following confirmation of deregistration and filing of the appropriate registration documents. If the aircraft has been deregistered outside of the United States, it cannot be ferried to the United States until issuance of the fly wire. Once the fly wire is in hand, the DAR can complete the final inspection and issue the U.S. Certificate of Airworthiness. Prior to issuing the Certificate of Airworthiness, the DAR will need confirmation that the aircraft has the new United States registration number on it and the transponders have been re-strapped. ### Customs entry as a separate payment event A licensed customs broker typically manages the electronic filings and payments of duties or taxes at the designated U.S. port of entry. This is a distinct payment from the purchase price — and the entry point matters. Something that can get lost in all the excitement is which airport the aircraft will be brought into the country through. Some airports could be "user fee" airports, meaning the buyer must schedule and pay for a CBP officer to be present, as they are not staffed during normal hours. If the aircraft was manufactured outside the United States, recent U.S. tariff actions have imposed duties on certain foreign-manufactured aircraft, collected by CBP at the point of entry. A potential exemption exists if the aircraft was originally U.S.-based, exported, and then reimported within three years of its export date. Knowing the tariff classification in advance — before closing — is basic professional due diligence. Surprises at the port add cost and delay, and the buyer will look to the advisor who structured the deal to explain why. ## The payment sequence for a yacht import ### The U.S. entry process For yachts being imported into the United States, the duty structure is more straightforward than for aircraft. Importing a boat into the United States is less costly than the other way around. The import duty on second-hand boats is 1.5% of the value of the boat for motorboats and sailboats, and there is no federal sales tax in the U.S., though state use tax may apply depending on where the boat is kept. To calculate the import duty, the customs agent needs a Pro-Forma Invoice, value survey, or purchase agreement. The declared value is the starting point, but it is not the final word. VAT — and by extension customs duty — is assessed on the value of the yacht at the time of import, and customs will not necessarily rely on the value stated on the invoice or contract; they may seek valuations from brokers if they consider there has been an under-valuation. A yacht broker issuing a valuation at closing should understand they may be providing a document that customs scrutinizes independently. Once a value has been placed on the vessel, the customs agent can calculate the exact cost of duty that will be due and provide the owner with an invoice and instructions on how to make payment to complete the importation. The required documents typically include a completed Pro-Forma Invoice by a Licensed Yacht and Ship Broker or Professional Surveyor, a value survey, or an executed Purchase and Sale Agreement to determine the value at which duty will be assessed. Once the duty has been paid, the owner of the vessel will receive U.S. Customs Clearance documentation known as an "Entry Summary" or CBP Form 7501, which shows duty has been paid on the vessel. That document becomes a permanent part of the chain of title. A brokerage yacht without it creates a liability for every future buyer, and every future broker in the chain. ### EU import: VAT is the dominant payment variable When a U.S.-owned yacht — or any non-EU vessel — is being permanently imported into Europe, the tax exposure is materially larger. The EU imposes approximately 1–3% tariffs on non-EU-manufactured yachts, plus VAT ranging from 17–27% depending on the importing country's standards. On a €10 million yacht, that VAT line alone can exceed €2 million. It is not an afterthought — it is a deal variable that needs to be priced, planned, and paid in the right jurisdiction. In respect of yachts imported from outside to within the EU, VAT should be paid at the time and place of import. It is assessed on the value of the yacht at the time of import, and customs will not necessarily rely on the value stated on the invoice or contract — they may seek valuations from brokers if they consider there has been an under-valuation. When a vessel is purchased or manufactured outside the EU and is intended to be delivered in a member state, the common-law procedure consists in importing the vessel by establishing a customs import document. Depending on the member state, the VAT should be paid to the customs or tax authorities. In most countries, this is done via a customs broker or freight forwarder. A customs import document — the Single Administrative Document or SAD — will then be prepared, and it serves as justification of the VAT payment and more generally the VAT status of the vessel. VAT status is not just a tax issue — it is a marketability issue. If the owner wants to sell the yacht in the EU, the sale price will be competitive as VAT-paid — without having that status, any EU buyer would be looking at having to pay an additional amount of VAT to formally import the yacht. A broker facilitating the import is effectively building or destroying future value in that asset depending on how cleanly VAT status is established at entry. ### The VAT-paid status trap in resales One of the most consequential due diligence questions in any cross-border yacht transaction is the VAT history of the vessel. If the yacht is being sold by a company, the broker needs to check whether it reclaimed any VAT paid when it purchased the yacht — meaning the boat is now deemed VAT unpaid. If VAT should have been paid and was not, or there is no proof of the boat's VAT status, or the owning company paid and reclaimed VAT, then the liability for paying any VAT due lies with the current owner and will pass to the purchaser on their purchase of the yacht. This is not a theoretical exposure. Some sales have fallen through because such information cannot be provided, and a potential buyer faces an increased risk of being stopped and fined for not having a VAT-paid boat. If the yacht is advertised as VAT-paid, it is important to request documentary evidence of this from the seller or their broker. At the negotiating table, the absence of a clean VAT paper trail is a legitimate price reduction justification — and a professional who knows this will use it. ### Temporary admission vs. permanent import Not every cross-border yacht transit is a permanent import, and the difference is financially significant. A pleasure yacht can stay in EU waters for 18 months without paying VAT. The condition is that it is owned by a non-EU resident and flying a non-EU flag. This is the Temporary Admission (TA) framework, and it is commonly used by U.S.-flagged yachts cruising Mediterranean waters for extended periods. The risk is mismanaging the clock. VAT-paid pleasure yachts that remain outside EU waters for more than three years are obliged to pay VAT again when they return to EU waters, unless they establish a specific customs scheme called "returned-goods relief." These vessels must have an export document and remain outside Community waters for a maximum period of three years before being re-imported. For the yacht broker or manager advising an owner on a cross-border move, this clock management is billable expertise. Knowing when the 18 months started, having the TA paperwork in hand, and advising on exit timing to reset the period — these are the advisory services that justify the relationship long after the initial transaction closes. ## The wire transfer and the compliance gauntlet Every cross-border import transaction above a certain size will move through international wire transfer. That is simply the channel for assets of this scale. Wire transfers are the predominant method for cross-border B2B payments and large transactions, with the most common solution being SWIFT, the global network used by financial institutions. But the wire is not frictionless. Funds are transferred through intermediary banks — also known as correspondent banks — and networks that connect the two parties. The banks and networks ensure that the transaction complies with international requirements and regulations. For some payment methods, the funds may pass through as many as five intermediaries before reaching their final destination. Each of those intermediary hops is a potential hold point. Banks and payment providers follow strict regulations for anti-money laundering, know-your-customer, and tax reporting. If any part of the transaction triggers a compliance flag, it can be held or rejected, slowing down operations and introducing more complexity. For a deal with multiple payees — a selling broker, a buying broker, an advisor, and sometimes a referral party — the single-wire model creates a structural problem. One wire goes to one account. Then that party disburses manually to the others. Every manual disbursement is a delay, a reconciliation task, and a source of relationship friction when amounts or timing differ from expectations. The professionals who built the deal each did their work; the payment infrastructure then makes them wait on each other. This is where Shaka changes the mechanics. A broker or closing attorney sets up a single payment link with each recipient's wallet address and their share of the proceeds. When the buyer's funds arrive at closing, every party — the selling-side broker, the buying-side broker, the advisor — receives their split in the same transaction, at the same moment. No sequential disbursements. No chasing. The money lands the way the deal was structured. ## The team and the payment architecture ### Who is on the transaction team The buyer needs to build an expert transaction team that includes an onsite technical representative at the inspection facility, the DAR, a licensed and bonded U.S. Customs Broker, local tax counsel to make sure Value Added Tax is not triggered, and local counsel to ensure that good title is being conveyed to the buyer free and clear of any local liens that might attach to the aircraft in the foreign country. Each of those professionals has a fee. Each fee is a payment that needs to get somewhere after closing. On a large international deal, the disbursement list can include: the selling broker and their house split, the buying broker, a co-broker or referral party, local counsel in the country of origin, U.S. aviation or maritime counsel, and a transaction advisor. These payments are triggered by the same event — closing — but they have historically been executed as a series of manual wires originating from whichever party received the aggregate funds first. That model creates exactly the kind of delay and ambiguity that damages professional relationships. One party waits on another. Amounts get questioned. Exchange-rate timing on different disbursement days produces different outcomes. Shaka eliminates that architecture entirely — the professional who structures the deal builds the split at the front end, and closing disburses to everyone at once. ### The customs broker as a payment manager Hiring a qualified shipping agent or customs broker to assist with entry declarations is standard practice. They guide in preparing and submitting required documents and can pre-declare vessel information to customs. Many buyers choose to use a customs broker because they take care of all the documentation and also the payment of VAT, which simplifies the entire process, especially if the import takes place across several EU countries. The customs broker's fee, the import duty, and any VAT deposit are typically paid in advance or at the time of customs entry — these are separate from the asset purchase price and need to be budgeted as distinct line items. A professional managing the closing timeline needs to sequence those payments correctly: customs duties cannot be paid before the vessel arrives, but the broker expects their fee at or before entry. The purchase price wire to the seller should be conditioned on the customs pathway being clear, or at minimum, that the buyer has engaged the broker and confirmed the entry port and timeline. ## Exchange rates, currency, and who bears the cost On a $15 million aircraft purchase funded in U.S. dollars from a buyer wiring to a European seller denominated in euros, the exchange rate at the time of settlement has real economic consequences. If the sender and recipient use different currencies, the payment provider converts the funds using the current exchange rate. This step may include a markup or service fee, depending on the provider. The contract should specify the settlement currency — not the denomination for the purposes of determining the deal value, but the currency in which funds will actually be delivered to the seller. If the contract says $15 million U.S. and the seller expects €14.2 million in their account, the exchange rate risk lives between those two numbers and one party is bearing it. That allocation should be explicit in the purchase agreement, not discovered at wire time. Currency fluctuations can change the exchange rate between payment initiation and settlement, which can lead to unexpected losses. While businesses can use hedging solutions to protect against FX risk, these can be costly and not accessible to all businesses. For a transaction of this scale, a brief forward contract or rate lock with the buyer's bank is standard practice, and the advisor who raises this early in the deal is adding genuine value. ## Tax liability exposure by jurisdiction: a practical map ### Purchasing in the EU, exporting to the U.S. You can purchase an aircraft — and obtain U.S. registration and airworthiness certificate — while it is in the European Union without incurring VAT, about 20 percent of the purchase price. But to avoid the tax, you generally have to export the aircraft promptly from the EU. Prompt means promptly. EU customs authorities have no patience for an aircraft that closes in France in October and is still on the ground in Cannes in January. The export documentation must follow the sale immediately. ### EU VAT on yacht import by member state Tax on boats purchased in EU states varies slightly depending on the country. In Spain it is 21%, in France it is 20%, and in Italy it is 22%. Denmark holds one of the highest VAT rates at 25%, while Greece is close at 24%. This creates a real planning opportunity. When a non-EU buyer is importing a yacht permanently into Europe, the choice of entry member state is a tax decision, not just a logistical one. A yacht entering through a member state with a lower VAT rate — and staying there — pays less on the same declared value than one entering through a higher-rate jurisdiction. That planning is best done before closing, with local tax counsel in the target country advising on the mechanics. When importing a boat or yacht, it must always be declared in the first EU country reached by sea or land. The actual customs process can be done either at the border, or where the boat will be used later. The boat can only be customs-cleared where it is physically located. The implications: if a yacht is sailing to its final berth in Monaco, and the broker wants to clear customs in Malta for rate reasons, the yacht must physically be in Malta during the customs clearance process. This affects the ferry leg, the delivery timeline, and by extension the closing sequence. ### The U.S. state-level complication In the United States, the tax picture is very different from the other side of the Atlantic. There is no federal U.S. sales tax applied to the purchase of boats, but instead there will be state taxes to pay which will vary from one state to another. A yacht imported into Florida and immediately berthed there is subject to Florida use tax. One that enters in Fort Lauderdale and departs to the Bahamas within a specified window may avoid it entirely, depending on state rules. These rules differ by state and change. The broker who knows the Florida versus South Carolina versus Rhode Island tax treatment for yacht imports is the broker whose buyer clients keep coming back. ## Lien clearance and clean title in cross-border deals A clear title must be verified in the plane's former jurisdiction before deregistration. Some countries will not issue a deregistration certificate if there is a lien or mortgage filed, but some will. Some registries do not record liens or mortgages at all. Either way, a clear title in the foreign country must be verified before deregistration. This is the hidden timing risk. A lien filed in the Cayman registry, or a financing arrangement registered in the Isle of Man, may not surface in a standard ICAO registry check. The buyer's counsel needs jurisdiction-specific lien searches that go beyond the FAA or IMO databases. If the aircraft made frequent trips to facilities in India and Sweden, for example, the buyer may want to order lien searches in those countries to avoid encountering undischarged liens on future visits. Consider buying title insurance that covers all relevant jurisdictions. Title insurance covers financial loss and any related legal expenses should there be a dispute with the title of the airplane. It is a one-time premium paid at the closing of the sale. Should there be a problem tracking down the chain of ownership, or if a lien is discovered, serious financial losses can result. Compared to the financial hit that would come from a defective title, the cost of title insurance is worth it. The payment at closing should never be released without lien-clear confirmation in writing. That confirmation is the trigger — not the signed purchase agreement, not the export certificate, not the fly wire. Those are all prerequisites. The lien clearance is the last lock on the gate. ## Structuring professional disbursements at a cross-border close A cross-border jet or yacht import typically involves a longer list of paid professionals than a domestic deal. The seller's broker, the buyer's broker, a co-broker, transaction counsel, a technical advisor, and sometimes a referral party all have legitimate claims on a portion of the gross commission. In a domestic deal, these splits are straightforward to execute — typically a single check or wire from the selling broker to the buying broker, and then that party disburses to any sub-splits. In a cross-border deal, the problems compound. The selling broker may be based in Geneva, the buying broker in New York, and the referral party in Singapore. Each disbursement is a separate international wire, with its own conversion, its own compliance check, and its own delay. The professional who received the full commission wire from closing becomes an involuntary disbursal agent, holding others' money while their own banks process outgoing internationals. Shaka solves this by design. The closing professional builds the split once — assigning each wallet its percentage — and creates a single payment link. When the buyer funds close, every party's share routes directly to their wallet in the same transaction. The commission doesn't land in one place and then get subdivided. It lands everywhere it belongs, at once. That's the architecture a cross-border professional deal deserves. ## The closing sequence: a practical summary No two cross-border jet or yacht imports are identical, but the payment logic follows a consistent structure. Contracts are signed before money moves. Funds are confirmed before deregistration begins. Customs entry is sequenced to the physical arrival of the asset. Tax counsel in both the country of origin and the destination country identifies the exposure before closing — not after. Lien searches are completed in every jurisdiction where the asset has operated, and title insurance is purchased where beneficial. The entry port is chosen with VAT rate and logistics in mind, not just convenience. What separates the brokers, advisors, and closing attorneys who do this well from those who struggle is not just technical knowledge — it is the ability to manage multiple simultaneous sequences, each with its own timeline and payment trigger, while keeping a buyer and seller aligned on price and timing. The payment infrastructure should match that level of precision. When the deal closes, every professional who made it happen deserves to be paid immediately, correctly, and without having to chase anyone for their share.