European Yacht Solutions

European Yacht Solutions

EU residents looking to buy and sail a yacht in the EU and any other yachts sailing in EU waters for a period extending over 6-18 months, are subject to VAT. The rate for this VAT varies and can sometimes add up to 20% of the relevant purchase. In spite of this, through European Yacht Solutions, one is able to mitigate this VAT rate. How is this attainable? One may opt for the advantageous VAT yacht leasing set-ups offered in Malta and Cyprus, two efficient tax regimes wherein one can save between 12% to 20% on VAT paid on yacht sailing in EU waters.

Malta’s VAT Yacht Solution

Having the largest ship registry in Europe and the 6th largest in the world, it is evident that Malta’s reputable flag and its advantageous VAT Yacht Solution are pull factors when it comes to yacht registration. Two questions arise from this: how is the Maltese flag reputable? And: how much does one save through the Malta VAT Yacht Solution? Malta, with its rich maritime history and vigilance towards implementing international environmental conventions, is listed on both the Paris and the Tokyo ‘low-risk ship list’ or ‘whitelist’ meaning that a Malta registered vessel is less likely to be detained at ports, giving the yacht owner peace of mind that he/she may sail EU waters freely and without restrictions.

As regards the Malta VAT leasing set-up, yacht owners benefit from a reduced rate of VAT, which can be reduced to 5.4% as opposed to the general VAT rate applicable to Malta. The length of the yacht is a determining feature in the amount of VAT that is to be paid – the bigger the yacht, the bigger the benefit. This makes the Malta Solution one of the more advantageous European Yacht Solutions.

Cyprus’ VAT Yacht Solution

Since 2012, Cyprus registered yachts also benefit from tax advantageous rates. The length of the yacht matters as VAT varies between 3.8% to 11.4% of the lease value. This is because only a percentage of the lease value should be subject to Cyprus’s standard VAT rate of 19%. For example, yachts over 24m are deemed to spend 20% of the time in EU waters and are therefore charged at the rate of 3.8%.

For reasons explained above, the Malta and Cyprus solutions are amongst the most advantageous European Yacht Solutions.

How can we help you?

Our tax advisors and maritime lawyers will assist you by planning and implementing your European Yachts Solutions. Our services to companies incorporated for foreign beneficiary clients include tax advice, Malta and Cyprus incorporation, tax compliance, accounting and auditing services. Our team also takes care of both Malta and Cyprus yacht registration, as well as its importation into the EU and the preparation of all documents necessary to set up the respective European Yacht Solutions structure. The vast experience of our team ensures a tailor-made solution and implementation of Malta or Cyprus solution in the best possible manner.



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Key Contacts

Dr Silvana Zammit

Partner, Global Property, Yachts & Aircraft

+356 22056423

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