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VAT Leasing

Malta’s maritime history, its strategic location in the heart of the Mediterranean together with the extensive range of services including training, maintenance, facilities and berthing in marinas such as Malta’s boutique Marina Laguna Marina in the stunning Valletta Waterfront, undeniably position the islands as one of the world’s most attractive spots for boat owners.
Malta’s maritime history, its strategic location in the heart of the Mediterranean together with the extensive range of services including training, maintenance, facilities and berthing in marinas such as Malta’s boutique Marina Laguna Marina in the stunning Valletta Waterfront, undeniably position the islands as one of the world’s most attractive spots for boat owners.

To continue to achieve recognition as an attractive jurisdiction, Malta’s VAT scheme on yacht leasing launched in 2005, gives boat owners the possibility of reducing the applicable VAT rate on the supply of leasing services. To date Malta has now become the largest maritime flag in Europe and the seventh largest in the world.

Yacht Leasing

In terms of guidelines issued by the Maltese VAT office, the overall VAT incidence incurred on the acquisition of a yacht may be reduced to as low as 5.4% depending on the type, size, length and power of sailing of the yacht. This scheme, which is recognised by the EU, allows vessels to be EU VAT Paid and therefore free to navigate in EU waters without any restrictions.

The rules provide a simplified percentage of the lease that is attributable to the use of the yacht in EU waters. The lease payments are subject to the standard Maltese VAT rate of 18% while the VAT is charged on a percentage of the lease payment according to the table below

Type of Boat Deemed % of Lease in EU Computation of VAT Effective VAT
Sailing boats or motor boats
(over 24 metres in length)
30% 30% of consideration
x 18%
5.40%
Sailing boats
(20.01 to 24 metres in length)
40% 40% of consideration
x 18%
7.20%
Motor boats
(16.01 to 24 metres in length)
40% 40% of consideration
x 18%
7.20%
Sailing boats
(10.01 to 20 metres in length)
50% 50% of consideration
x 18%
9%

Commercial yacht code

The commercial yacht code gives super yacht owners the opportunity to have their yachts registered as commercial vessels meaning they pay an annual tax on the tonnage of their yacht instead of income tax on the earnings. This opportunity is of interest to owners or prospective buyers of yachts on which no EU has been paid and is open to new and second-hand yachts. Furthermore, all kinds of sea going vessels, from large cruise liners and super tankers to private yachts, may register under the Maltese maritime flag; a flag widely known and respected by port authorities across the world.

Yacht Consultancy Services

Together with local and international esteemed legal partners the Mersenne Yachts team can assist yacht owners by:
– Obtaining the required VAT clearances
– Assisting in the set up and registration of the yacht under the Maltese flag
– Providing an annual registration and support of VAT payments and office support giving boat owners the peace of mind of knowing that they are benefiting from the most attractive pricing structures.Prospective clients are invited to call Mersenne Yachts Sales Team on 00356 21230 980, 00356 99302095 or email info@mersenne.com.mt for more details and to learn more about benefits designed for boat enthusiasts all over the world.