Valuable cost savings in Malta
We can register your vessel quickly and efficiently and ensure that you get all the benefits of a Maltese boat registration.
Please contact us now on:
T: +356 2132 0153
F: +356 2132 0841
M: +356 9999 0914
E: info@jacsinternational.com
A Yacht can qualify to be registered as a Commercial Yacht when all the
requirements set out in the relevant regulatory Code are satisfied. As with
other similar Codes in other jurisdictions, the Commercial Yacht Registration
Code contains a set of technical regulations which have to be abided with in order
for commercial registration to take place. The technical regulations and specifications
which are designed to distinguish a commercial yacht from the others are clearly in
line with the various international maritime conventions to which Malta is a party.
VAT Exemptions with credit for Chartering Activities
Maltese law grants a VAT exemption with credit in the following scenarios:
- the chartering and hiring by a Maltese VAT registered company
of a commercially-registered yacht;
- the supply of equipment to be incorporated in vessels used for
navigation on the high seas and carrying passengers for a reward;
- the modification, maintenance of such vessels or their equipment;
- the supply of goods, fuelling or provisioning of such vessels;
- the supply of other services for the direct needs of such vessels, such
as valuation and agency services.
Reduced VAT Rates in Finance Leasing Transactions
Persons wishing to acquire yachts through finance leasing can now
avail themselves of the advantageous VAT treatment which the Maltese
Government has recently announced.
The guidelines issued by the Maltese Government in relation to the
VAT treatment of finance leasing of yachts provide that in the case of
yachts used outside EU waters, no VAT is chargeable.
Where, however, the leased yacht is used in EU waters, VAT on the
finance lease payments is charged at a reduced rate established on a
deemed percentage use of the yacht in EU waters. The deemed percentage
use is based on the dimensions of the yacht and thus, while the standard Maltese
VAT rate is 18%, a reduced VAT rate would apply in accordance with the table set
out hereunder.
The rates indicated in the table can be applied to any yacht which is leased by a
Maltese VAT-registered lessor. No restrictions apply to the place of establishment
of the lessee. Under certain circumstances, the reductions can also be applied without
involving a bank or other finance institution.
Ship and Yacht Registration in Malta
Malta has, time and again, proved to be one of the most popular jurisdictions when it
comes to the registration of ships and yachts. The reason behind this fact is an array of tax
exemptions and other advantages which are carefully selected to harness the strategic
importance which Malta holds in the middle of the Mediterranean Sea.
Such advantages include:
- low company formation and ship registration costs;
- no restrictions as to the nationality of the owner, master, officers and crew;
- no restrictions on the sale and mortgaging of Maltese vessels;
- no restrictions on the transfer of shares of a company owning such Maltese vessels;
- a number of fiscal incentives;
- 24x7 service in cases of urgency.
The fiscal incentives include:
- tax exemption to owners, charterers, and financiers of Maltese ships over 1,000 net tons
(smaller ships can also benefit from this exemption under certain circumstances) on income
derived from shipping activities of a licensed shipping organisation;
- inapplicability of exchange control regulations to transactions connected with the ownership,
operation, administration, management, purchase or financing of an exempt ship;
- no income tax is payable on gain arising on the liquidation, redemption, cancellation, and
disposal of shares, interest or goodwill held in a licensed shipping organization;
- no income tax is payable on interest or other income payable to persons in relation to
financing of shipping operations or the financing of ships;
- persons not resident in Malta who are officers/ employees of licensed Maltese shipping
organizations are entitled to be exempt from the provisions of the Social Security Act
- exemption from duty in respect of:
- the registration of an exempt ship;
- the issue, allotment, purchase or transfer of any security or interest in a shipping
organization;
- the sale of the ship;
- the registration or transfer of any mortgage or charge over any ship or shipping
organization; and
- the assignment of rights and interests or the assumption of obligations in respect
of any ship.
Eligibility for Registration
• All vessels including pleasure yachts, oil tankers and oil rigs can be registered
under the Maltese flag;
NB. Vessels constructed more than 25 years ago need an express permission
for registration, while vessels of 15 years and over must pass an inspection test
before such registration;
• Vessels must be wholly owned by Maltese citizens or a company registered in Malta
(licensed shipping organization) or, in default, provided that a Maltese registered agent
is appointed;
• The formation and registration of a company in Malta involves the submission of the
constitutive documents of the company to the Maltese Registrar of Companies. Subject
to a minimum requirement of 2 shareholders and 1 director, there are no number, nationality
or residence restrictions on shareholders/directors of the Maltese company owning the
vessel. The minimum share capital is Lm500 (Euro 1200) of which at least 20% has to be
paid up upon registration.
Registration Procedure
While being regulated by the Merchant Shipping Act, a law which is largely
based on its UK counterpart, ship and yacht registration in Malta forms part
of a simple streamlined procedure divided into 2 main phases:
(i) the provisional registration (valid for 6 months extendible to 1 year), and
(ii) the permanent registration.
Pending the finalization of the formalities required for permanent registration,
a provisional registration certificate may be issued in respect of any vessel, which
certificate will remain valid for 6 months (extendible to 1 year).
The documents required for the Provisional Registration to be made are the
following:
1. A copy of the statute of the Company which would have been incorporated in Malta for
the purpose;
2. A duly completed application for registration;
3. An application for a change of name, if required;
4. A copy of the ships International Tonnage Certificate;
5. Evidence of seaworthiness of the ship, and in case of trading vessels, confirmation
of class;
6. The completion of application form to obtain a minimum safe manning certificate;
7. A declaration of ownership made by the ship owner or by an authorised representative;
8. Class payment of initial and annual registration fees.
The documents required for the Permanent Registration to be made are the
following:
1. A builder’s certificate in case of first registration, or a deletion certificate
from the last port registry;
2. A bill of sale or any other document by which the vessel was transferred to the applicant
for registration free from any encumbrance;
3. An endorsed copy of the Ship's Carving and Marking note by a recognised surveyor or a
Maltese Consul, which note is issued by the Malta Maritime Authority upon
provisional registration;
4. A certificate of survey and a copy of the tonnage certificate certifying that the vessel
has been surveyed in accordance with Maltese regulations;
5. A crew list;
6. Copies of officer’s certificates;
7. Application for Wireless Telegraphy Apparatus, if required.