The Mediterranean island nation Malta is known for the incentives it offers companies who move their operations to Malta. However, Malta does not only offer interesting tax rates for companies, it should also be mentioned that buying and registering yachts can offer very interesting tax incentives that should not be neglected.
There are two different types of yachts in Malta: Pleasure and Commercial yachts. A yacht that is used for leisure is always registered as a Pleasure yacht. Only when the yacht is used for a commercial purpose, such as a chartered yacht, it is registered as a Commercial yacht.
When a yacht is purchased you will also have to pay VAT. Depending on where you live, it can be up to 20% of the purchase value that you would have to pay in VAT. If you register the yacht in Malta you can pay a reduced rate, as the VAT is calculated depending on the intended use and size of the vessel, and not the purchase value. For example, if the total price of a new yacht is 1 Million Euros, and the VAT rate of your country is 20%, 200.000 Euros of the price would be the VAT. Under these circumstances is a reduced rate very interesting, as you might be able to save 100.000 Euros or more even.
When you purchase a yacht and register it in Malta, you can move the boat to any location that you wish. It is not necessary that the vessel is stationary in Malta, it only needs to be in the country during the registration. Having said that, Malta is a beautiful country that should definitely be explored. The pristine waters of the Mediterranean and the pleasant climate turned Malta into a very popular destination for sailors from all over the world, and prestigious races are held annually.
When purchasing and registering a yacht in Malta, you should have a experienced legal counsel by your side, as it involves some paperwork, and it is important to have a representative on the island. The office of Dr Werner & Partner is specialised in yacht registrations, and we can take care of the necessary paperwork for you. You are welcome to contact us if you are interested in more details about our services relating to yacht registrations in Malta.
