Commercial Yacht Registration

Malta-flagged yachts operated on a commercial basis may be registered as Commercial Yachts subject to compliance with the requirements of the Commercial Yacht Code drawn up by the Merchant Shipping Directorate within Transport Malta.

Advantages which may be availed of through the operation of a Commercial Yacht:

• No Malta VAT would be chargeable by the yacht owner during the operation of a commercial yacht if the lessee of the yacht concerned uses it for an economic activity;
• Input VAT incurred on goods and services acquired and attributable to the yacht owner’s chartering operations would be recoverable;
• No Malta tax is chargeable on income derived from the chartering of a commercial yacht by a licensed shipping organisation, which may be a Maltese Company or an international owner recognised by the Merchant Shipping Directorate. An annual tax calculated on the basis of the yacht’s tonnage would be payable to the Merchant Shipping Directorate instead;
• No Malta tax or duty is chargeable upon the disposal of a yacht by a licensed shipping organisation;
• No Malta tax is chargeable upon a distribution of dividends by a licensed shipping organisation;
• No Malta tax or duty is chargeable upon a disposal of shares in a licensed shipping organisation;
• No restrictions on the nationality of the Master, Officers and crew carried on board Maltese yachts;
• Flexibility of ownership- Yachts registered under the Malta flag may be owned by any citizen of the European Union or by any Maltese or foreign companies that are acceptable to the Shipping Registrar.

For further information about how Zammit & Associates – Advocates can help you with your yachting requirements kindly contact us on marine [at] zammit-law [dot] com