02 Sep Yachting Registration
Yachting Registration
Malta Yacht Leasing Scheme
Traditionally Malta has long been a centre for ownership and registration of ships and yachts.
However, for the past few years Malta has developed into an astounding maritime centre distinguished for its low corporate tax and favourable yacht leasing arrangements. Malta has become an attractive jurisdiction to register yachts in Europe as the scheme provides significant tax benefits when compared to other European Union (EU) Member states. The Malta Yacht Leasing Scheme permits yacht owners to pay VAT at attractive rates on their yachts, calculated on the percentage of the time the vessel is deemed to sail in EU waters, with a VAT paid certificate at the termination of the scheme.
Why MJM Europe?
MJM Europe has proficiency in structuring, management and running leasing agreements so we are best placed to receive your instructions. We can deal with:
- Incorporation of a yacht owning company in Malta (the lessor). If a lessee company is needed, we can also provide administration services.
- Yacht registration with the Malta Maritime Authority.
- EU VAT registration of the lessor in Malta.
- The drafting of financial leasing agreements for the purchase or transfer of ownership of yachts and any other resolutions as might be required from time to time.
- At the end of the Lessor’s first VAT accounting period, Salt Partners will obtain a letter from the Malta VAT Department confirming that the lessor is properly accounting for VAT on the lease of the vessel.
- Should the lessee exercise the option to buy the yacht on expiration of the lease, MJM Europe will help obtain the certificate of Vat paid from the authorities.
The tables below illustrate the government established percentage of the lease applicable to VAT according to type (i.e. Motor yacht or Sailing yacht). Approval for the payable VAT rate must be obtained from the commissioner of VAT. For this purpose, the Department of VAT needs to be provided with the details necessary to determine the value and size of the yacht.
Motor Yachts
| Length | % of lease subject to VAT | Effective rate of VAT |
| Over 24 metres in length | 30 | 5.4% |
| Between 16.01 – 24 metres | 40 | 7.2% |
| Between 12.01 – 16 metres | 50 | 9% |
| Between 7.51 – 12 metres | 60 | 10.8% |
| Motor boats up to 7.5 metres | 90 | 16.2% |
Sailing Yachts
| Length | % of lease subject to VAT | Effective rate of VAT |
| Over 24 metres in length | 30 | 5.4% |
| Between 20.01 – 24 metres | 40 | 7.2% |
| Between 10.01 – 20 metres | 50 | 9% |
| Sailing yacht up to 10 metres | 60 | 10.8% |