Canada Lifts Luxury Tax as Electric Boats Surge Worldwide

A New Wave for Canada’s Boating Industry

Canada has officially removed the Luxury Tax on private boats and aircraft valued over $250,000 — a major win for the marine sector and a long-awaited relief for shipyards, brokers, and service providers.

Industry experts are already forecasting a surge in registrations, refits, and yacht sales, predicting a strong rebound for the Canadian market. The move eliminates a policy that had discouraged buyers since 2022, and for many in the business, it feels like a long-overdue reset.

“This isn’t just tax relief — it’s a green light for growth,”notes Kim Sweers, The Boat Boss, from Fort Lauderdale.

With Canada’s renewed incentive, brokers expect a wave of new builds and service requests leading into 2026, as owners revisit plans that had been put on hold.

Electric Boating: The Industry’s Fastest-Growing Segment

Globally, the electric boating market continues to accelerate. Currently valued at $7.7 billion, it’s projected to soar to $21 billion by 2035 — a remarkable 10.5% annual growth rate.

Driving this expansion are stricter emissions standards, rapid advances in battery and charging technologies, and a growing desire among yacht owners for eco-luxury alternatives.

“Green is good — and it’s no longer optional,”adds Sweers, after test-driving AVI Boats’ hydrofoil model in Florida.

AVI’s hydrofoil electric boat, boasting a 75-nautical-mile range, turned heads at every dock. Meanwhile, companies like Vision Marine Technologies continue to push propulsion efficiency forward, proving that sustainability and performance can coexist at the luxury end of boating.

Boat Show Season: From Fort Lauderdale to Amsterdam

Following the Fort Lauderdale International Boat Show (FLIBS) — the largest in-water show in the world, with over 1,300 vessels and 100,000 attendees — attention now turns to Europe’s powerhouse events.

Key November and December highlights include:

• The Superyacht Forum (Nov 17–18, Amsterdam)

• METSTRADE (Nov 18–20, Amsterdam)

• Yacht Racing Forum (Nov 20–21, Amsterdam)

• Abu Dhabi International Boat Show (Nov 20–23)

• Athens International Boat Show (Dec 3–7)

• Antigua Charter Yacht Show (Dec 4–9)

• Cancun International Boat Show (Dec 5–7)

  
  

Each event reflects a sector rediscovering its rhythm — innovation, sustainability, and optimism at the helm.

Safety and Responsibility at Sea

In other industry news, the trial of former captain Paul Clark — accused of crashing a tender in St. Barts, injuring six crew — has been set for October 12, 2026, in Broward County. The case serves as a reminder that professionalism and safety must always guide operations, regardless of vessel size or status.

“Always boat smart from the start,”Sweers emphasizes — a message that resonates far beyond the headlines.

A Positive Current for 2025

From financial reform to technological revolution, the tides are shifting across the global yachting industry. Canada’s decision to abolish the Luxury Tax signals more than a policy change — it represents a renewed confidence in boating as both an economic driver and a lifestyle.

And with electric innovation surging and show season in full swing, one thing is clear:

The future of yachting isn’t just luxurious — it’s electric.