VAT Yacht Leasing in Malta

Malta has introduced a yacht leasing initiative which may reduce the effective VAT leakage payable upon the acquisition of the yacht to as low as 5.4%.

In order to benefit from this incentive, one would need to follow this procedure:

  • A Maltese limited liability company would need to be incorporated. This would acquire the yacht;
  • The company would apply for VAT registration in Malta for the purpose of carrying out its leasing activity;
  • The company would enter into a lease agreement with the lessee (an individual/Maltese company) for a minimum period of 12 months, and a maximum period of 36 months;
  • At the end of the lease period, the lessee would be in a position to opt to purchase the yacht at a percentage of the original price. The final purchase is strictly an option which may be exercised at the end of the lease for a separate consideration;
  • The yacht would need to be brought to Malta at the starting point of the lease and (although this may be optional) before the sale is affected, in order for both the lease and the sale to be taxable in Malta (rather than in another jurisdiction) and hence subject to the advantageous rates offered in Malta.

Why Malta?

  • Malta has established itself as a leading maritime centre of excellence;
  • Thanks to its strategic location within the Mediterranean, Malta offers myriad services and facilities to the maritime industry;
  • Malta has the largest ship register in the European Union, which also ranks as the seventh largest in the world;
  • Malta features on the White List of the Paris Memorandum of Understanding on Port State Control, which reduces the risk of being detained in ports for breach of international conventions, for ships sailing the Malta Flag;
  • The registration of a vessel on the Maltese Register does not necessitate the incorporation of a shipping company in Malta;
  • Any type of vessel can be registered under the Malta Flag, thus giving ship owners the possibility of registering unconventional vessels;
  • The Maltese Islands host several yacht marinas. These also include facilities for super yachts.

How Mazars can help

Our team of highly trained professionals can provide you with more information about the initiative and also assist you during the whole procedure.

Contact us for more information

Maritime in Malta

Tax Advisory

Tax programmes

Downloads

Share