All yachts sailing in Europen waters are subject to VAT, a tax which accounts for a significant expense to be taken into consideration when buying or selling a yacht. However, there is an option which allows buyers to minimise their tax liabilities potentially down to 5.4% for yachts over 24 metres. This can be done under the Malta VAT Yacht Solution by opting for an advantageous leasing set-up. Through this set-up, buyers will benefit from VAT savings between 12% to 20%. Ultimately, the effective rate of tax will depend on the size of the yacht since the larger the yacht, the smaller the percentage of VAT to be paid will be. This encourages prospective yacht buyers to opt for larger yachts since these come with finer benefits from a tax perspective.
Besides establishing itself as an ideal jurisdiction for yachts and tax planning, Malta has also consolidated its reputation as the Mediterranean maritime centre par excellence, vaunting the largest ship registry in Europe and the 6th largest registry in the world. It has amassed this success thanks to its highly reputable flag which allows vessels registered in Malta to freely sail in EU waters. Vessels registered under the Malta flag will also receive preferential treatment in respect of port charges and taxes.
With the Malta VAT Yacht solution, everyone is a winner. Indeed, these fine yachts come with very fine benefits. Fill in the form below to get a free consultation from Dr Silvana Zammit, our maritime law expert who will be able to show you how you can benefit from the Malta VAT yacht solution.
