Maltese Yacht Leasing
Maltese Yacht Leasing is one of the most popular corporate yacht ownership structures available to European owners wishing to enjoy their yachts sailing in and around EU waters.
In November 2005, the Malta VAT Department introduced reduced rates of VAT in relation to leasing arrangements with respect to yachts, entered in to between a Maltese yacht-owning company as lessor and a lessee (often a UK Company) which could effectively reduce the VAT on such transactions to as little as 5.4%.
Whilst the monthly lease charges by the lessor to the lessee are subject to VAT at the standard Malta VAT rate of 18%, it is deemed that the yacht will be only be used partly within EU territorial waters and consequently VAT is chargeable only in respect of the portion of time that the yacht is deemed to be within EU territorial waters during the lease period.
The VAT guidelines indicate that this percentage will be determined according to the type of the craft as demonstrated in the following table:
|Craft Type|| % of lease |
subject to VAT
rate of VAT
|Yachts over 24 metres in length||30%||5.4%|
|Sailing Yachts between 20.01 and 24 metres in length||40%||7.2%|
|Motor Yachts between 16.01 and 24 metres in length||40%||7.2%|
|Sailing Yachts between 10.01 and 20 metres in length||50%||9.0%|
|Motor Yachts between 12.01 and 16 metres in length||50%||9.0%|
|Sailing Yachts up to 10 metres in length||60%||10.8%|
Since inception, Bachmann Yachts have helped a significant share of yacht owners to take opportunity of these arrangements, offering a ‘Maltese Leasing Turn Key Package’.
Being fully licenced and regulated, Bachmann Yachts will set up and manage a Maltese Yacht Owning Company, as lessor, providing all key officials and responsibilities; set up and manage a lessee company, providing all key officials and responsibilities, register the yacht at the desired port and flag state, (often London), and undertake the focal point of control and administration throughout the duration of the arrangement.
For further information, please contact Gary Le Cras – Director and Head of Yachting Services.