The Advantages of Importing Yachts in the EU through Malta
Malta has established itself as a hub for maritime enthusiasts seeking to import yachts for free circulation within the European Union (EU). This strategic advantage has positioned Malta as a top destination for yacht owners and businesses alike. In this article, we explore the benefits of importing yachts through Malta for free circulation in the EU.
1. Favourable Taxation Regime
One of the most significant advantages of importing yachts through Malta is its favourable tax regime for both yacht owners and businesses. Malta offers a reduced VAT rate of 18% on the value of the yacht, provided certain conditions are met. This is notably lower than the standard VAT rates in many other EU countries. Additionally, Malta’s VAT rules for the importation of yachts are structured to accommodate both private and commercial use, making it an appealing option for a wide range of yacht owners.
Malta’s VAT rate on the importation of yachts for commercial yachts is 18%, however a VAT deferment scheme is available which replaces the need to pay the 18% VAT. A deferment of VAT may be applied for on the importation of commercial yachts by Maltese owning entities having a Maltese VAT registration without the requirement of the importing entity setting up a bank guarantee.
2. Flexible Leasing Structures
Malta’s leasing structures, provide an attractive option for yacht owners and charter companies. Under a VAT leasing structure, yachts can be leased to individuals or entities for commercial purposes, allowing for the payment of VAT only on the portion of the lease that corresponds to the use of the yacht within EU waters. This provides considerable flexibility and potential cost savings, making Malta a preferred choice for those seeking to reduce their tax liability while enjoying the benefits of a high-quality maritime experience.
3. Temporary Importation intended for Private use
Yachts and superyachts flying a non-EU flag, owned by non EU residents and using their yacht privately, may place their yachts under temporary importation via Malta, for a period of 18 months. During this period the yacht can sail freely within EU waters without any further customs formalities.
4. Geographic Advantage
Situated at the crossroads of Europe, Africa, and the Middle East, Malta’s strategic location within the Mediterranean makes it an ideal point of entry for yacht owners seeking to explore the diverse coastal destinations of the EU. Yachts imported through Malta have easy access to some of the most iconic cruising spots in the Mediterranean, such as the French Riviera, the Italian coast, and the Greek islands. This geographic advantage enhances the overall experience of yacht ownership and chartering.
5. Yacht Services and Infrastructure
Malta boasts a comprehensive range of yacht-related services and facilities, making it an attractive destination for yacht owners. The island is equipped with world-class marinas, repair and maintenance facilities, and skilled professionals in the maritime industry. This infrastructure ensures that yacht owners can enjoy a seamless experience, from importation to ongoing maintenance and support.
Importing yachts for free circulation in the EU through Malta offers a multitude of advantages that cater to the needs of both private yacht owners and commercial entities. The combination of a favourable tax regime, flexible leasing structures, strategic location, and robust maritime infrastructure has firmly established Malta as a top choice for maritime enthusiasts looking to explore the captivating waters of the European Union. Whether for leisure or business, Malta’s advantageous offerings make it a prime destination for yacht importation and a gateway to unforgettable maritime experiences.
At AML we offer the complete service of yacht importation through Malta. Contact us on maltaflag@amlmalta.com for further information.
