Yachts never go out of style. Whether as a hobby, a status symbol, a business model, or a private sanctuary, there are plenty of reasons to acquire a motor or sailing yacht. However, beyond the excitement of choosing the boat itself, you inevitably have to address the question of registration.
In this context, Malta has established itself as a highly attractive jurisdiction for yacht owners. Registering in Malta can offer significant VAT efficiencies. The extent of these potential savings generally depends on two main factors: firstly, whether the vessel is a motor or sailing yacht, and secondly, the length of the hull. As a general rule of thumb: the larger the vessel, the greater the potential for tax optimization.
The Two Main Categories: Commercial vs. Pleasure
The Maltese transport authority, Transport Malta, distinguishes between two primary categories when registering a yacht. The type of licence determines the long-term usage of the boat, making this decision fundamental to your setup.
1. The Commercial Yacht Code
First, there is the Commercial Yacht licence. This is the appropriate route for owners intending to purchase the boat for chartering purposes. Typically, this involves incorporating a Malta Limited company to handle the chartering operations and hold the ownership of the yacht.
There are strict regulations regarding private use under this licence. If you plan to make your boat available primarily for third-party chartering, please contact us to discuss the specific compliance requirements and how to structure this correctly.
2. The Pleasure Yacht Licence
On the other hand, there is the Pleasure Yacht registration. Unlike the commercial option, this is intended for predominantly private use. Consequently, this carries different requirements and tax implications compared to a commercial operation.
Location and Logistics
Regardless of which registration route you choose, opting for the Maltese flag does not mean your yacht is confined to Maltese waters. You are free to dock your yacht permanently in French, Spanish, Italian, or other international marinas.
However, please note that for the initial registration process, the vessel is usually required to be physically present in Malta for surveying purposes.
If you have further questions about yacht registration or structuring your maritime assets, the team at DW&P Dr. Werner & Partners is here to assist you.
