Malta has established itself as a flag of choice within the pleasure yacht sector, and consequently, has the largest shipping registry in Europe. An optimized VAT finance leasing structure in Malta can help minimize the amount of value-added tax payable upon yacht registration in order to gain legal access to EU waters.
In addition to being one of the top jurisdictions in Europe in yacht registration, citizens of Malta can directly register a yacht without the need to incorporate a local company.
Maltese Citizenship for Yacht owners
- Outstanding Global Status – the Malta flag boasts a prestigious reputation within the international yachting community.
- Advantageous Ownership – registering a yacht in Malta is fast and inexpensive. Following company formation, the necessary purchase occurs, and the company is now the direct owner of the yacht. This setup results in a flexible legal entity sanctioned to carry out a variety of shipping activities including chartering of the vessel.
- Foreign Ownership Allowed – foreign corporations (including offshore companies) are permitted to register a yacht under the Maltese flag provided they have a resident agent in the country.
- Anonymous Ownership – it is possible to achieve confidentiality on the ownership of the yacht by appointing a fiduciary.
- Low Yacht Registration Costs – Malta has extremely low yacht registration and annual renewal costs.
- No Mortgage Restrictions – Malta has no restrictions on the sale or transfer of shares of yacht-owning companies. The country also has no restrictions on the mortgaging of local vessels.
- No Restrictions on Crew – Malta does not place any restrictions on the nationality of crew members serving on locally registered yachts. This allows employment of any ideal candidate as captain, officer, chef, deckhand, or other crew member position regardless of nationality.
- No Age Limits – Malta does not have an age restriction on vessels. Ships between 15 and 20 years old must pass an inspection before or within a month of being provisionally registered; ships from 20 to 25 years old must pass an inspection prior to provisional registration, and any vessel older than 25 years old requires specific permission from Maltese authorities.
- Peace of Mind – with fantastic year-round weather, graced with one of the most sheltered natural harbours in the World, and stunning marinas with exceptional facilities including top-notch security, Malta provides international yacht owners with a sense of safety and stability regarding valuable property.
- VAT Savings – a yacht can become “EU VAT paid” granting unrestricted access to EU waters for as little as 30% of the normal VAT rate (5.4%) via a Malta yacht VAT leasing scheme.
- Low Maintenance Costs – yacht berthing and maintenance costs in Malta are amongst one the lowest in the EU.
The Malta Individual Investor Programme (MIIP) offers high and ultra-high net worth individuals and families worldwide citizenship in a highly respected EU Member Country. Malta, a member of the European Union since 2004, enjoys a stable political climate, a buoyant economy, and has some of the soundest banks in the world. The Malta IIP is the first investment citizenship program of its kind to be acknowledged by the European Union.
Source/Credit: Finance Malta/ Mondaq