Malta Yacht Leasing Scheme for VAT
Further to Malta's accession to the EU back in 2004, the Malta Yacht Leasing Scheme has proved a highly beneficial and cost-effective scheme resulting in a VAT paid yacht whilst VAT is substantially mitigated. With the demise of the Isle of Man as a beneficial VAT jurisdiction the Malta Yacht Leasing Scheme remains the preferred option for VAT mitigation.
The Maltese VAT Department issued guidelines on the 24th November 2005 clarifying how VAT would be treated in respect of leased yachts. The Maltese Government has ruled, under the VAT on Yacht Leasing regulations 2006, that only a percentage of the lease value should be subject to Malta's normal VAT at 18%. Depending on the size of the yacht concerned the effective rate of VAT will vary between 5.4% to 9% of the lease value. The variation is by reference to length overall and the type of yacht.
Our lawyers enjoy good relations with the VAT Department and the Malta Transport Authority and have drafted appropriate lease documentation and designed a corporate structure that complies with the guidelines for clients to enjoy substantial financial benefit. We are able to assist fully with the setting up of the appropriate yacht-owning company in Malta, yacht registration, outfitting of the yacht if necessary and make berthing arrangements on your behalf.