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.

e-Volve Malta’s accountants can assist with the following services:

  1. Establishment of a company to take ownership of the yacht or other vessel at the end of the Malta lease period (if required).
  2. Establishment of a company to act as the seller/lessor in the hire/purchase arrangement. Alternatively, we may be able to offer the use of an existing company in Malta for this service.
  3. Obtaining pre-approval / authorisation from the Maltese VAT office.
  4. Handling all aspects of the importation of the vessel (if applicable).
  5. Registration of the vessel in Malta (if desired).
  6. Transfer of ownership of the vessel under the hire/purchase scheme.
  7. Provision of audited financial statements/accounts for the Maltese company/companies reflecting the VAT hire/purchase.
  8. Liquidation of the lessor company (if applicable).

The scheme is also applicable to the hire-purchase of aircrafts.

In addition to the Maltese VAT reduction on vessels hire/purchase scheme, e-Volve Malta may be able to assist, through its network of overseas partner firms, with yacht and aircraft hire/purchase arrangements in other countries in the EU, including in Italy and Cyprus.