Ever since Mark Zuckerberg and his luxury yacht entered the public eye, the superyacht has been the talk of the town. Recently, the news made waves on social media that Meta CEO Mark Zuckerberg's new $300 million yacht has found its new home in Fort Lauderdale, Florida, and is unique in that it sails under the flag of the Marshall Islands instead of the American Stars and Stripes.
The yacht is so large that it overshadows other yachts, so it cannot be moored side-by-side with many small boats, but only large container ships. After the exposure of these photos, people speculated that the billionaire worth $179 billion chose to register his superyacht in the Marshall Islands out of some kind of "tax haven" considerations? After all, the Marshall Islands has long been one of the most popular places to register superyachts with its liberal tax policy, with a total of 436 superyachts making their home here.
It is worth mentioning that this yacht was originally tailor-made for the Russian oligarch Valdimir Potanin. However, due to US sanctions against Russia, he was unable to receive the yacht as he wished. This leaves Fidistar with no choice but to seek a waiver from the government and sell it to another shipowner, and this lucky owner is none other than Zuckerberg.
After the news of Zuckerberg's purchase of the yacht reached the United States, it quickly became the focus of public opinion. Because while opposing the Russian media, he bought a megayacht that would have belonged to the Russians and acquired a vessel with such a huge carbon footprint while teaching others how to reduce emissions. Now, the absence of the American flag on the yacht has attracted widespread attention. But in reality, flag registration is not just a matter of tax evasion, there are more complex factors behind it.
The reasons why U.S. superyacht owners choose to register their vessels in other countries are often based on practical considerations. This option is called a "flag of convenience" and is designed to seek more flexible and convenient sailing conditions. This phenomenon is closely related to the past regulatory policies of the United States on private superyachts over 300 gross tons. It was a bill signed by former President Donald Trump that allowed U.S. owners of large yachts to register their vessels under the U.S. flag.
Still, there are rules and regulations that may make billionaires set their sights on foreign flags. For yachts registered under the U.S. flag, the captain and officers must be U.S. citizens or naturalized U.S. citizens with U.S. passports. According to mega yacht management company Hill Robinson, there is also a so-called "75/25 rule" that only allows 25 percent of undocumented crew members to be permanent residents of the United States, while the remaining 75 percent must be U.S. citizens with U.S. passports.
Barrett Wright, president of Hill Robinson, explains: "We were frustrated that finding quality U.S. crew with the right qualifications was not easy. This also means that in terms of wages and compensation, the number of quality crew members in the United States is limited. In order to attract good crews, these yachts have to pay above-market salaries because they are in great demand for crews. "Sailing under the American flag is a patriotic show, but it also faces many challenges. Not only are crew members employed by a U.S. employer, but they are also required to pay U.S. federal withholding taxes, social security, and health insurance fees.
Billionaire superyacht owners like Zuckerberg expect to be able to sail his $300 million yacht at home and abroad as much as he wants. However, a series of restrictions imposed by the American flag on the crew seem to have put a considerable obstacle to this desire of his. For those with long-term crews, the American flag may not be too much of a problem.
At the same time, they will not be allowed to use the yacht "Launchpad" to transfer any type of cargo (even larger personal items) from his property in Hawaii to anywhere else. A well-known social media blogger revealed the fact that people can't charter private yachts with American flags, which also makes these floating assets look like a liability when not in use. However, things are not absolute. This dilemma could be reversed by imposing a 1.5% tariff on foreign-made yachts and operating the luxury yacht in U.S. waters as a private vessel or commercial charter yacht.
A superyacht like the Launchpad with 12 well-designed guest rooms, a sparkling swimming pool, a glass-encrusted viewing lounge, a spacious beach club, and an outdoor dining area and bar. To experience this week of luxury, you need to pay at least $1 million in rent. For Zuckerberg, the cost is a drop in the bucket, but it certainly brings some relief to the $25 million to $30 million he spends annually on maintaining the $300 million superyacht. Maintaining a $300 million superyacht would cost Zuckerberg at least $30 million a year. If the Silicon Valley tycoon does decide to charter his new luxury yacht, a lot of maintenance costs will be taken care of, albeit without an American flag.
Today, Zuckerberg's yacht is a topic of conversation. It is more than just a luxury yacht, it is the focus of various controversies and discussions. From tax issues to environmental ideas, from national image to personal choices, this yacht has become the focus of attention. And Zuckerberg himself also needs to find his own balance and response to these controversies.