Buying a sailing or motor yacht is usually quite an expensive purchase, as yachts often cost more than £1 million. Having to pay 20% VAT on top of that will result in a significant amount that should not be neglected, and it is often wise to look for opportunities to save money.
Malta offers a convenient opportunity to save taxes when purchasing and registering a pleasure yacht. The island nation in the heart of the Mediterranean is a popular destination for yacht owners in the whole world, and the clear waters attract more and more people every year. The VAT system for yachts is structured differently in Malta, and it is more important how big the yacht is, and what it is used for, rather than just the purchase value. It is possible to pay VAT for a pleasure yacht between 4-16%. A pleasure yacht is a yacht that is used by individuals for personal purposes, whereas a commercial yacht is one that will be used commercially, such as a rental yacht that can be chartered.
A yacht that is registered in Malta does not have to be moored in Malta either. The yacht has to be in Malta at the time of registration, but after that it can be moved to a different location. However, it is also possible to keep it moored here, as there are many marinas in Malta, and they are reasonably priced as well, depending on the location.
Malta is especially popular in summer, and many tourists visit the island to enjoy the summer sun and the beautiful waters. It is also easily possible to go to Sicily, as it is only 90 km north of Malta. If you decide to purchase and register your yacht in Malta, you should definitely take some time to visit the island. It does not only offer pristine waters, but also a rich cultural history and many sights worth seeing.
