How to make a profit from renting out a boat

• 20.01.2025.
• News, Management

Every season, tourists enjoy the beauty of the Adriatic on rented yachts. While they explore the crystal-clear sea, boat owners and charter companies generate solid income. Could this be a profitable opportunity for you too?

If you already own a boat or are considering purchasing one through a charter management model, it is important to understand everything that boat rental entails. 
Chartering in Croatia can be profitable, but it requires thorough preparation, good market knowledge, and adherence to legal regulations. 
  
Boat rental is not a source of income that requires no effort – investment is needed in maintenance, registration, insurance, and marketing. 
Choosing the right business model is equally important – you can manage the rental yourself or entrust the boat to a professional yacht charter company. 
  
Before making a decision, consider the costs, benefits, and expected revenue. 
With careful planning and good business management, chartering can become a stable source of income, and your boat can start generating profit instead of sitting unused in the harbor. 

 

Boat rental for private individuals – what you need to know? 

Before you start a yacht charter business, you need to realistically assess the profitability of investment and research market opportunities. 
  
Croatia is among the most attractive destinations for nautical tourism, with a growing number of guests. This means competition is high, and profitability depends on several factors: type of vessel, location, business model, and rental management approach. 
  
Investing in a charter boat requires careful cost planning – registration, insurance, maintenance, marina fees, marketing, and booking management can significantly impact the final profit. 
  
There are two main ways to rent out a boat: 

• Self-managed rental – You are responsible for marketing, reservations, maintenance, and paperwork. This model offers higher earnings but requires more involvement and knowledge. 
• Yacht charter management (rental managed by a charter company) – You rent out your boat to a professional yacht charter company that handles everything, while you receive a fixed or variable income. This model is less risky but generates lower profit since the company takes a commission. 

Advice: If you have no experience in the yacht charter business and do not want operational responsibilities, it is better to choose charter management. If you have the time and knowledge, self-management can be more profitable. 
  
Before making a final decision, research rental models, legal obligations, and market trends to ensure that your investment is profitable and sustainable. 
  
The most in-demand boats on the Croatian market are: 

• Sailboats (35-50 ft) – Popular for family trips and profitable due to lower maintenance costs. 
• Catamarans (40-50 ft) – High demand, higher rental prices, but also more expensive maintenance. 
• Motor yachts (luxury segment) – Less demand but high weekly rental prices. 

Advice: If you are new to the yacht charter business, a sailboat or a smaller catamaran is the optimal choice, as they offer a good balance between investment and revenue. 

Financial calculation – how much can you earn? 

Revenue depends on the type of vessel, location, and season length. Average weekly rental prices at peak season: 

• Sailboat (40 ft) – 2,500 - 4,500 € 
• Catamaran (45 ft) – 6,000 - 10,000 € 
• Motor yacht (50 ft) – 10,000 - 30,000 € 

Annually, you can expect an average of 12-20 weeks of bookings. 
Costs include: 

• Marina berth – 3,000 - 10,000 € per year 
• Maintenance and servicing – 5,000 - 15,000 € 
• Insurance – 2,000 - 7,000 € 
• Marketing and commissions – 15-25% of the rental price 

Advice: Investing in a quality booking system and good marketing (professional photos, presence on platforms and social media) can significantly increase occupancy. 
  
What are the legal obligations and tax requirements? 

• VAT on rental services – 13% (if operating as a company) 
• Registration for commercial use – The vessel must be registered for rental, which includes a maritime permit and inspection 
• Income tax or corporate tax – If operating as an individual, you pay a lump-sum tax; if you own a company, you pay corporate tax 

Advice: If you own fewer than 3 vessels, lump-sum taxation through a sole proprietorship may be a more profitable option than establishing a company. 
  
How to increase profitability? 

• Invest in maintenance – Regular servicing reduces breakdown costs during the season 
• Location is key – Split, Zadar, and Dubrovnik are the most popular starting ports 
• Extend the season – Focus on April-June and September-October, when prices are lower but demand still exists   

Collaboration with a yacht charter management company – is it profitable? 

Owning a boat comes with significant costs for maintenance, marina berth, insurance, and administration, especially if you plan to rent it commercially. 
  
Collaborating with a yacht charter management company can optimize these costs. 
Yacht charter management works by having the boat owner hand over management to a charter company, which takes care of maintenance, advertising, reservations, and complete operational business. 
  
Rental income is shared according to pre-agreed terms, while ongoing expenses are often covered from the generated revenue. 
Key advantages of working with a yacht charter company: 

• Reduced operational costs – Maintenance, insurance, and marina fees are often included in the program. 
• Stable income – Depending on the boat and location, you can expect 15-25 weeks of bookings per year. 
• Passive income – No need for personal involvement in marketing, reservations, or logistics. 
• Return on investment – On average, owners cover the cost of the boat within 5-7 years, with a smart choice of business model. 

Important conditions for collaboration: 

• Type of vessel – Most commonly accepted boats are 10-16 meters in length (sailboats, catamarans, motor yachts). 
• Collaboration contract – Defines revenue distribution, maintenance conditions, and duration of cooperation. 
• Costs – Depending on the model, some yacht charter companies cover all expenses, while others expect the owner to share part of the costs. 

Yacht charter management is the most profitable option for boat owners who want to monetize their investment without operational responsibilities. It is also important to choose a reliable partner, review contract terms, and ensure a transparent income distribution. 

 

How to choose a boat for charter in Croatia? 

If you are planning to buy a boat for charter, choose a vessel based on market demand rather than personal preferences. 
The type of boat directly affects occupancy rates, maintenance costs, and profitability, so it is important to make an informed decision. 
  
The most important factors when choosing a rental boat are: 

• Target guest group – Different tourist profiles seek different types of boats. 
• Investment profitability – Compare maintenance costs and potential earnings. 
• Seasonal occupancy – Certain types of boats are easier to rent throughout the season. 

If you want a broad guest base, catamarans are currently the most in-demand, while sailboats offer the best balance of investment and return. 
  
Motor yachts target the luxury segment but require higher investments and high maintenance costs. 
  
Advice: If you are unsure which model to choose, consult a yacht charter management expert who can analyze the market and recommend the best solution for your business. 
  

Independent boat rental in croatia – what you need to know? 

Owning your own boat can be a good foundation for entering the yacht charter business, but it is essential to understand legal regulations and financial aspects to operate legally and profitably. 
Can a private boat be rented legally? 
  
In Croatia, private individuals are not allowed to rent out boats. If you want to offer your boat for rent independently, you must: 

• Register a company (d.o.o.) or a sole proprietorship for boat rental. 
• Register the boat for commercial use (charter), which includes special technical inspections and insurance. 
• Meet tax and administrative obligations, including VAT on rental income and annual business costs. 

Key difference: Private boats have limited use, registration, and insurance options, while commercial boats must meet specific safety and legal requirements. 
  

How profitable is independent boat rental? 
Independently managing a yacht charter business can increase profit but also comes with greater operational responsibilities: 

• Higher income – You retain a larger percentage of earnings as there are no intermediaries. 
• Greater responsibility – You must personally handle marketing, reservations, maintenance, and paperwork. 
• Business costs – Maintenance, marina fees, insurance, and taxes can significantly impact profitability. 

Advice: If you have no experience in the yacht charter business, working with a charter management company is the best and safest option to start. 
  
Independent boat rental in Croatia can be profitable, but it also requires registering a business activity, complying with legal regulations, and managing costs professionally. 
If you want to learn more about how to legally start a yacht charter company and avoid administrative mistakes, check out our guide "Opening a yacht charter company" 
 

 

Renting small boats in Croatia – daily rent a boat 

The rental of smaller boats in Croatia often operates on a daily rent model, where the boat is rented per day without accommodation. 
This option is popular among tourists who want to explore the coast, spend a day at sea, or reach remote beaches and islands. 
  
Who are the target clients? 

• Tourists – Staying in hotels, apartments, or camps, looking for a one-day boat trip. 
• Group excursions or private tours – Option with a professional skipper or guide. 
• Self-rental – Guests can operate the boat themselves but must have a valid boating license. 

What types of boats are most commonly rented? 

• Rigid inflatable boats – Affordable, fast, and ideal for reaching nearby islands and beaches. 
• Smaller motorboats – More stable, suitable for family trips and fishing. 
• Fast motorboats – For tourists who want to explore greater distances. 

What to consider in daily rent boat rental? 

• Legal regulations – Small boats registered for rental must meet technical and safety standards. 
• Insurance – It is essential to insure the boat for commercial use. 
• Rental conditions – Clearly define who covers fuel costs, insurance, and possible damages. 
• Client safety and education – Before handing over the boat, guests should be informed about basic navigation rules. 

Renting smaller boats can be a highly profitable business model, especially in popular tourist destinations. It is crucial to have a well-organized booking system, clear contract terms, and an attractive starting location. 

 

How to make a profit from renting out a boat 

Whether you are renting out larger vessels for long-term charter or smaller boats under the daily rent model, a rental contract is essential for the legal protection of both the owner and the guest. 
Although the law does not prescribe a specific contract format, mandatory maritime regulations must be followed, including navigation safety and marine environmental protection. 
  
What should you consider before entering the yacht charter business? 

• Legal and financial regulations – Research legal obligations, tax aspects, and registration costs. 
• Market demand – Analyze which type of vessel has the highest occupancy and where demand is greatest. 
• Maintenance and costs – Plan realistic annual expenses for servicing, insurance, and marina fees. 
• Marketing and sales – Ensure strong visibility on booking platforms and collaborate with agents. 

How to increase rental profitability? 

• Early planning – Filling the reservation calendar in advance reduces the risk of empty weeks. 
• Flexibility in offers – Consider both short-term and long-term rentals to optimize revenue. 
• High-quality service – Excellent customer support and additional services (skipper, catering, transfer) can enhance profitability. 

Success in the yacht charter business does not happen by chance – thorough preparation, market research, and strong organization are key to long-term profitability. 
You cannot predict all challenges, but with proper planning and efficient management, your vessel can become a stable source of income. 
  
 
If you need advice on boat rental, yacht charter management, or legal and financial details, contact us. 

Our team of experts and partners will help you make the right decisions and maximize the potential of your vessel.

 
 
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