Malta Yacht Leasing

The yacht leasing system is one of the most popular corporate ownership structures available for European yachts operating within the European Union (EU).

In addition to providing benefits in terms of asset separation and limitation of liability, leasing systems can, as a side benefit, provide potential for the amount of VAT payable on the value of the yacht to be reduced.

Background

The Republic of Malta has historically been a popular centre for the ownership and registration of ships and yachts.

Following the accession of Malta to the EU it was decided to enhance further the appeal of Malta to yacht owners as a centre of excellence for corporate yacht ownership and registration by introducing a leasing system that was based on a model already implemented by France and Italy.

An innovation of the French and Italian leasing model was the introduction of an automatic presumption of the time that a yacht might operate outside EU territorial waters during the course of the lease.

The automatic presumption was also adopted by Malta with the standard rate of VAT in Malta of 18% being applied to an established percentage of the lease deemed to correspond to the estimated use of the yacht in EU territorial waters.

The following tables illustrate the established percentage of lease according to the type (i.e. motor or sail) and length of yacht:

Motor Yachts

Length % of lease subject to VAT Effective rate of VAT
Over 24 metres in length 30% 5.4%
Between 16.01 and 24 metres in length 40% 7.2%
Between 12.01 and 16 metres in length 50% 9%

Sailing Yachts

Length % of lease subject to VAT Effective rate of VAT
Over 24 metres in length 30% 5.4%
Between 20.01 and 24 metres in length 40% 7.2%
Between 10.01 and 20 metres in length 50% 9%

For further information please do not hesitate to contact us.

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Guernsey Office

Oceanskies Limited

Castle Emplacement

St. Peter Port, Guernsey GY1 1AU

Channel Islands, Great Britain

Malta Office

Oceanskies (Malta) Limited

43A/1 Saint Paul's Buildings

West Street, Valletta VLT 1532

Malta

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