Yacht Lease / Purchase

Malta’s unique position in the southernmost tip of the EU affords clients an excellent opportunity to substantially reduce the VAT payable on the acquisition of vessels.

The effective VAT reduction is the result of the deemed usage provision of EU law which allows a vessel registered in Malta under a hire-purchase agreement to attribute a portion of its operation to the non-VATable waters surrounding Malta.

This attribution (and the consequent reduction in VAT) can be made irrespective of the actual use of the vessel and is supported by a preapproval letter from the Government VAT office.

During the lease period the vessel will be given free-circulation status in EU waters from the Malta VAT office.