Malta, a fiscally competitive EU jurisdiction, provides for a low VAT scheme for boats & yacts.

1. Low Rate VAT Scheme for
Yacht Finance Leasing
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2. Special regulations govern the financial-leasing of yachts to third
parties by Maltese companies, allowing for significantly reduced
VAT rates on the acquisition of the yacht.
What is finance-leasing?
A Malta company (lessor) purchases a yacht and leases it to a third
party (lessee), who may be an individual or company (whether
Maltese or not), with the option in favour of that third party to
purchase the yacht at a fraction of the purchase price at the end of
the lease.
This will result in the lessee enjoying significant EU VAT rate
reductions on the total acquisition price.
Malta’s standard VAT rate is 18% and is levied on the lease charges
when a Malta company purchases a pleasure yacht and enters into
a finance-leasing contract with the lessee as the supply of the
service is deemed to occur in Malta.
Malta VAT authorities, to assist with calculating the time spent in
EU waters, have issued a “presumed” length of stay chart:
Example: a motor yacht, 16.5 metres in length is presumed to be in
EU waters for 40% of the time, resulting in an effective VAT rate of
7.2%.
Requirements
 Lease contract must be between a Malta company and a
Maltese or foreign person or company;
 Approval of Commissioner of VAT must be obtained in writing
prior to commencement of the lease, to determine the
applicable rate of use in EU waters;
 A valuation certificate is to be given to the Commissioner of
VAT before the transaction;
 Lease agreement to be between 12 months and 36 months;
 The yacht is to be brought to Malta (at least once during the
term of the lease, preferably at commencement;
 Lease contract must require that lessee pays 50% of the value
on signing and the balance within the term of the lease;
 Final purchase price must not be less than 1% of the original
value of the yacht., upon which 18% VAT is charged;
 The Malta company must make at least 10% profit on the
transaction.
Low Rate VAT Scheme for
Yacht Finance Leasing
Yacht Type
% of Lease
Subject to
VAT
Effective VAT
Due
Yachts over 24 meters 30% 5.4%
Sailing yachts from 20.01 - 24 metres 40% 7.2%
Motor yachts from 16.01 - 24 metres 40% 7.2%
Sailing yachts from 10.01 - 20 metres 50% 9%
Motor yachts from 12.01 - 16 metres 50% 9%
Sailing yachts up to 10 metres 60% 10.8%
Motor yachts from 7.5 - 12 metres 60% 10.8%
Excellence | Superb Client Service | Cost Efficient
info@acumum.com | www.acumum.com | Skype ID: acumum
Malta Office: +356 2778 1700
260 Triq San Albert, Gzira, GZR 1150, Malta (EU)

3. Acumum can assist you via our dedicated Malta Maritime specialists in providing you with a range of services:
 Formation of shipping
companies - both ship owning
and ship management
 Malta yacht & ship registration
 Malta bareboat charter
registrations
 Mortgage registration &
discharge
 Security documentation
 Handling of all flag
administration matters
 Tax planning for merchant
vessels and yacht owners
 Accounting and secretarial
support
If you would like further information or would like Acumum to start the process of registering your ship or
yacht under the Malta flag, please contact us.
Excellence | Superb Client Service | Cost Efficient
info@acumum.com | www.acumum.com | Skype ID: acumum
Malta Office: +356 2778 1700
260 Triq San Albert, Gzira, GZR 1150, Malta (EU)
Geraldine Noel
Managing Partner
Malta Office:+356 2778 1700 Ext. 101
Email: gnoel@acumum.com
Geraldine Spiteri
Partner
Malta Office: +356 2778 1700 Ext. 102
Email: spiteri@acumum.com
Acumum - Legal & Advisory: Maltese, UK & International Lawyers, Tax Advisors & Accountants
Excellence | Superb Client Service | Cost Efficient
info@acumum.com | www.acumum.com | Skype ID: acumum
Malta Office: +356 2778 1700
260 Triq San Albert, Gzira, GZR 1150, Malta (EU)
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Guidance Purposes Only V1.1 2014