Passion Turned into a career: Interview with Igor Karmelić, Yacht Sales Advisor at Croatia Yachting

When someone gets to know the sea from early childhood, it often shapes their entire life. Such was the case with Igor Karmelić, Yacht Sales Advisor at Croatia Yachting, who took his first sailing steps with his parents at the age of four. Today, after a decade of working in one of the leading yacht sales and management companies on the Adriatic, he has more than a hundred sold vessels behind him and the status of an expert who successfully guides owners through the complex world of financing, maintenance, and charter operations. We spoke with Igor about all aspects of a yacht’s “life” – from its place in the charter season and the financial structure of purchase, to the advantages of joining a charter management program.

In terms of a yacht’s “life cycle” in charter, how many weeks does it realistically spend on the water each season, and what are the main differences in performance between bareboat charter yachts and luxury crewed catamarans?

On average, our fleet achieves around 20.5 charter weeks per season. Bareboat sailboats and catamarans typically reach over 20 weeks, since bareboat charter is in highest demand among typical sailors. Luxury crewed catamarans, however, operate differently: they average 14 weeks per season but command higher charter rates. Bareboats appeal to independent sailors that value complete privacy, while crewed yachts focus on premium service, exclusivity, and comfort, attracting a different type of clientele.

Yacht financing can sound complex. Could you describe how it works in practice for prospective owners—from the initial down payment to the repayment over the years?

Some clients purchase a yacht directly from their savings, but the majority choose to finance through a financial lease. This model works similarly to a loan secured by a mortgage, with the yacht itself serving as the sole collateral. The leasing company retains ownership of the yacht until the final instalment is paid.
We guide all our clients through the entire process to make it as seamless as possible.
Our standard financing model is straightforward:

•  35% down payment on order.
• 20% in the 3rd lease installment, funded by the VAT refund.
• Remaining balance is spread over 7–9 years (with a maximum of 10).
•  Interest rates are usually around 5%.

VAT is refunded within ~60 days to the leasing company, so owners don’t carry that financial burden. We also offer options for balloon payments or residual value agreements, depending on the owner’s financial strategy.

What options do yacht owners have if they already own a boat and are considering joining your charter management program?

When owners approach us with this request, we first verify the availability of a berth in one of our bases. Next, we evaluate the yacht’s condition, market demand, and overall charter potential. Based on this, we prepare a detailed income and cost projection, which helps the owner make an informed decision. For most, the motivation is clear: they use their yacht only a few weeks per year, while the rest of the time it generates ongoing costs. By entering our charter management program, those costs are covered, and the yacht can even produce additional income, turning ownership into a much easier and more financially sustainable experience.

VAT is often a confusing topic for many buyers—how does Croatia Yachting simplify the entire refund and administration process for them?

When buying a yacht for commercial use, the buyer is entitled to a full VAT refund which makes charter management even more attractive. For that, the boat needs to be bought in the name of a company. Croatia Yachting fully supports owners through the VAT refund procedure, ensuring the refund (25% in Croatia) is approved with a 100% success rate. We provide guidance and prepare all the needed documents for authorities, so the owner doesn’t have to. This way, VAT becomes only a temporary cash outlay—not a cost.

Once someone becomes an owner, what annual costs should they expect, and how accurately can you predict unexpected expenses?

Owning a yacht naturally comes with annual expenses, with berthing typically representing the largest share. Through our charter management program, owners ensure that these costs are covered from charter income rather than out of pocket.
The main annual costs include:

•  Berthing, insurance, and maintenance – all predictable and budgeted.
• Company overheads of approximately €2,600 per year.

Our financial projections account for all foreseeable expenses, while warranty coverage during the first two years minimizes unexpected costs. Beyond that period, our experienced maintenance team handles servicing proactively, ensuring that unforeseen issues remain rare and manageable.
It is also important to note that while leasing repayments are not classified as operating costs (apart from interest), they play a significant role in the overall cash flow and should always be considered within the charter management business case.

In difficult situations, such as when a yacht is out of operation due to damage or an accident, how do you protect the owners and their expected charter income?

It is important to highlight that such cases are extremely rare. Out of our fleet of nearly 190 yachts, only a handful lose a week or two within a charter season. This reliability gives owners confidence that their yacht will generate steady income with minimal disruptions.
Our insurance includes loss-of-income coverage. If a yacht cannot operate due to covered damage, the owner receives compensation for lost charter revenue for the weeks that were already booked before the damage occurred. This protects the financial return while we handle repairs, logistics, and communication with charter clients.

Transparency is key to building trust nowadays—how do owners track all costs and income, and how clear and user-friendly is your administrative system?

That is one of the major concerns of every client considering any charter management program. They fear that they will be taken for a ride. We provide full transparency through detailed invoices, and access to Nausys, one of the most advanced booking systems in the industry. Owners can monitor all bookings, revenues, and expenses in real time. No hidden fees, no flat charges—everything is documented and accessible.

Where are your charter centers located along the Adriatic, and what makes these spots true “hot spots” in the global yachting scene?

Our yachts are based in six carefully chosen marinas along the Adriatic coast—Marina Kaštela,Marina Baotić in Seget Donji, ACI Marina Dubrovnik, Marina Mandalina in Šibenik, Marina Dalmacija in Sukošan, and Marina Kornati in Biograd. Each of these locations is a gateway to some of the most beautiful sailing grounds in the world, with crystal-clear waters, countless islands, and excellent marina facilities.
What makes them so special is not only the natural beauty but also the convenience. They are well connected internationally, easy to reach for our guests, and perfectly positioned for itineraries that range from short island-hopping trips to extended cruises along the Dalmatian coast. For owners, this means their yacht is always in the right place—close to the most desirable routes and in the heart of one of the world’s most exciting yachting destinations.

Investment value is surely a concern for every owner—how do your maintenance practices and standards help ensure that a yacht retains a high price even after seven years?

One of the key reasons our yachts retain such strong resale value—on average 65–70% of the purchase price after seven years—is the way they are maintained throughout their charter life. Unlike many privately owned yachts, which are often left standing unused during the off-season and only serviced right before sailing, our charter yachts undergo regular inspections, ongoing servicing, and continuous care.
During the winter months, the yachts are aired out whenever the weather allows, preventing humidity-related damage and keeping interiors fresh. Each season, we carry out extensive servicing to ensure that every guest enjoys the same level of comfort and reliability, even in the final weeks of charter. This level of constant upkeep ensures that yachts remain in excellent condition throughout the program and are far from “worn out” when it comes time for resale.

What can owners expect regarding the tax framework in Croatia—how much do taxes and depreciation realistically impact them?

In Croatia, corporate tax is set at 10% on profit, but in practice, yacht ownership through charter management rarely generates taxable profit during the operational years. Thanks to depreciation (booked at 10%) and deductible running costs, the result is usually negligible or even negative. As a consequence, most owners pay little or no corporate tax until the yacht is resold, and even then, depreciation helps reduce the taxable base.
It’s important to note that the accounting depreciation rate of 10% differs from the yacht’s actual market depreciation, which is significantly lower. To make the process seamless for owners, we connect each client with a specialized accounting firm that takes care of invoices, payments, tax and VAT reporting, and bookkeeping. This ensures everything is handled correctly, without the owner needing prior knowledge of Croatian tax regulations.

Once owners join the program, how much do they actually need to worry about the daily business obligations related to their yacht, and how much of that does your team handle?

Once an owner joins our program, their involvement in the daily running of the yacht is minimal. We take care of every aspect of the operation—from bookings, check-ins, and guest support management on larger yachts, as well as berthing, insurance, and technical maintenance. All financial administration is handled by a professional accounting firm, which manages invoicing, payments, VAT, and tax reporting. This ensures full compliance with Croatian regulations and provides peace of mind to the owner. In practice, the only thing an owner needs to do is review the regular reports we provide and enjoy using their yacht for up to ten weeks each year.

The charter market in the Mediterranean is extremely competitive—how does your network and experience guarantee that a yacht in Croatia will achieve high booking occupancy?

The Mediterranean charter market is highly competitive, but Croatia Yachting gives owners a strong advantage thanks to our long-standing experience and wide-reaching network. As both a leading charter operator and an official dealer for several major yacht brands, we combine local expertise with international visibility.
Your yacht is promoted not only through our own direct booking channels but also through a trusted network of global brokers, agencies, and digital platforms. This ensures that it reaches a broad audience of qualified clients looking to charter in Croatia.
Beyond marketing reach, what truly sets us apart is our reputation for quality service and reliability, which keeps clients coming back year after year. This combination of strong partnerships, brand recognition, and repeat clients helps secure consistently high occupancy levels for the yachts in our fleet, giving owners confidence in their investment.

And finally, what makes Croatia Yachting special—why do you think owners choose you and stay loyal over the long term?

Owners choose Croatia Yachting because we make yacht ownership simple, transparent, and rewarding. Our program combines the financial benefits of generating charter income with the lifestyle advantages of carefree ownership. From the moment you join, everything is handled for you—maintenance, bookings, guest support, berthing, insurance, even administration—so you can focus on enjoying your yacht instead of worrying about the details.
What really makes us different is the trust we build with our owners. They know their yacht is in safe hands, that every aspect is managed professionally, and that they’ll always have clear insight into costs and income. Add to this our reputation, prime Adriatic locations, and long-standing expertise, and it’s easy to see why many owners stay with us year after year. For them, it's not just about having a yacht—it’s about knowing they have a reliable partner by their side.