Those of you, who have yachts registered in Malta, know of all the tax benefits that you enjoy. Not only are you exempted from income tax for all income generated from the yacht, but additionally you also enjoy exemption from VAT for any supplies, maintenance or chartered revenue generated.
Although commercial yacht does not complete exemption, they do enjoy the benefit of paying 5% lower tax rate.
Mentioned below is the procedure on how to register a yacht in Malta.
How Can You Register A Yacht Under Malta Flag?
If you are a citizen of any of the European Union then you can register a yacht in Malta. To register a yacht, you will first have to set up a company and the company will then own the vehicle. Individuals are not allowed to own yachts in Malta. You will be using the Maltese company to own the yacht indirectly.
The company will be a legal entity that will have a lot of flexibility as far as its activities are concerned. The company can be involved in yacht chartering activities and that is how you will be using the yacht. Yacht is actually the cheapest way to sail in European waters and many of us therefore want to own one. It is best to hire an attorney, who will help in getting the company registered, who will be the owner of the yacht. It is not difficult to establish the company, but the right advice and guidance would be needed here.
One point to be noted here is that for all non-Maltese residents a certified copy of official document will be required. They will also have to appoint a Maltese resident, who will liaise with the Maltese authorities.
The Registration Process:
Today, Malta has the largest number of owners of ships and yachts. This is because they have kept their registration process smooth and fast. They have clear rules and laws related to registration and the registration cost is low. The mortgage system is also very clear to make using the yacht easier.
Malta is well-recognised jurisdiction that is respected the world over. The process is also well designed and if all correct documents are submitted then the process will not take more than 2-3 days. Your attorney will help in arranging the documents and follow through the process.
The first step is to get a provisional registration of the yacht in the name of your company. The documents required for the same are:
- Declaration of ownership of the yacht
- Application for registration of yacht in Malta
- For all vehicles over 24 m in length, a copy of the certificate of international tonnage
- Technical details of the yacht
- A radio licence application.
These documents will help secure a provisional registration that will last for six months. Post this period, a full documentation will be done to get the name of the previous owner deleted from the register and a Certificate of Malta Registry will be issued in the company’s name.
The process is easy enough and by hiring the right attorney for the job, you can ensure that the documents are also in order. So, all those of you who always dreamed of owning a yacht, wait no further and get your own yacht in Malta today.
David Watson works at a popular yacht chartering and sales company. If you are looking for the cheapest way to sail in European waters, kindly contact them by visit their website.