Building on its long and varied maritime tradition, Malta is a leading international maritime hub and service centre. The island enjoys a strategic geographical position at the centre of the Mediterranean. The Malta Flag is a flag of confidence and international repute. Being one of the largest ship registers in the world and enjoying the top post as the largest register for yacht and superyacht registration with around 800 superyachts, the Malta Flag guarantees a serious and efficient maritime administration. The flag state inspectorate ensures adherence to international standards.
Vying to become an international centre of excellence in the maritime industry, Malta offers a whole range of international maritime services and facilities as part of a comprehensive package for the superyacht industry. These include deep natural harbours, state of the art superyacht marinas, extensive refit and repair facilities, a multitude of support shore services and infrastructure, a cluster of local and international operators and service providers together with bunkering operations and supplies. This is complemented with a welcoming approach of the English-speaking locals which makes visits of the most discerning captains and crew a pleasant experience.
ADDITIONAL INFORMATION
Signature Private Office can assist yacht and superyacht owners in:
- Yacht registration and management;
- Crewing and payroll.
- Flag of confidence and international repute
- Adherence to international standards with IMO/EU proactive participation
- Malta is on the White List of the Paris and Tokyo MoU
- Full member of the EU and the Commonwealth
- Stable economy, robust financial services regulatory framework and a sound political climate
- Quick and straightforward procedure for yacht registration
- Competitive yacht registration costs and annual fees
- Attractive tax incentives for yacht owners
- VAT-efficient finance leasing structures
- Yacht can be registered in the name of a company
- No trading restrictions – the company’s shares can be transferred or sold without restriction
- No restrictions on the nationality for the master, officers and crew
- No restrictions on the nationality of shareholders and directors of the company
- No restrictions on the sale and mortgaging of vessels
Registering a yacht or superyacht in Malta allows the owner to benefit from favourable tax incentives and VAT-efficient finance leasing structures. Under the Malta Flag a yacht may be registered as a Private Yacht or a Commercial Yacht. The yacht can be registered in the name of a company or the owner, irrespective of the nationality. If the owner is not residing in Malta, Signature Private Office will act as a Resident Agent for the yacht. This is an advantage versus many jurisdictions that require the owner to reside in the country of registration or to be a national of said country.
Private Yacht Registration
The Merchant Shipping Directorate considers a private registered yacht to be any pleasure yacht, of 6 metres in length or more, does not carry passengers for reward, and is not engaged in trade but is used for the sole purpose of the owner.
Commercial Yacht Registration
A commercially registered yacht is considered to be a yacht of 15 metres in length or more, does not carry cargo, carries not more than 12 passengers, and is operated by the owner or company owning the yacht for commercial use.
Yachts That Can Be Registered in Malta
The following classes of yachts will be considered for commercial registration:
- yachts in commercial use of not less than 15 metres in length and not more than 24 metres;
- superyachts in commercial use of more than 24 metres in length and less than 500 gross tonnes;
- superyachts in commercial use of more than 24 metres in length and 500 gross tonnes and over.
The Maltese VAT guidelines address scenarios where a Maltese company purchases an aircraft and enters into a lease agreement of the aircraft with a third party. The aim of this structure is to enable owners to pay VAT on their private jet calculated on the percentage of the time that the aircraft is used within EU airspace. In accordance with Malta’s VAT legislation, the lease by a person established in Malta of an aircraft used purely for private purposes constitutes a taxable supply of a service taking place in Malta when the aircraft:
- is put at the disposal of the customer in Malta;
- is leased for a continuous period of not more than 30 days;
- is leased for a continuous period exceeding 30 days to a person established in Malta.
- the lessor must be a company registered in Malta for the purpose of acquiring the aircraft;
- the lessor must be registered with the Malta VAT Department;
- the lessee is not eligible to claim input VAT;the lease agreement cannot exceed 60 months;
- the lease payments must be paid monthly;
- the lease agreement must obtain approval and confirmation from the VAT Department.
Where leasing arrangements of yachts do not fall within the scope of Legal Notice 369 of 2005 and where the aforesaid lease is deemed by the Commissioner for Revenue to be in accordance with guidelines issued by the VAT Department from time to time, the Office of the Commissioner for Revenue has decided that in such special case, the following tax treatment is to be adopted for each year for the duration of the lease:
- the lessor is charged to tax only on the annual finance charge, namely the difference between the total lease payments less the capital element divided by the number of years of the lease;
- the lessee is allowed a deduction in respect of the (i) the finance charge; (ii) maintenance; (iii) repairs; and (iv) insurance;
- the lessee is allowed capital allowances in respect of the yacht and the parties may not opt to shift the burden of wear and tear onto the lessor;
- where the lessee exercises an option to purchase the yacht on the termination of the lease, the purchase price received by the lessor shall be considered to be of a capital nature and no tax thereon shall be payable by the lessor.