Malta’s VAT scheme on yacht leasing needs to be better advertised because it puts the island in an unparalleled position when compared with schemes offered by other EU countries, according to a foreign brokerage director.
The favourable VAT treatment on the leasing of pleasure yachts combined with the geographical position at the centre of the Mediterranean Sea means Malta “faces no competition”.
“Malta has a unique yacht leasing structure,” Sunseeker London brokerage director Harry Bristow-Holmes told Times of Malta.
“While countries such as France charge a VAT rate of between 20 and 21 per cent, Malta can charge between seven and 10 per cent.
“People save a lot of money. I would say that this unique scheme needs to be better advertised though – most of our clients would never have heard of it if we hadn’t informed them of it ourselves,” he said.
Vat must be paid on all EU-registered yachts, apart from those used for chartering and other commercial activities.
Mr Bristow-Holmes is in Malta accompanying a yacht that belongs to a top client.
Currently berthed at the Grand Harbour Marina, the one-of-a-kind Sunseeker 101 Sport Yacht Black Legend arrived on Sunday for maintenance servicing.
With €1.2 million of extras, including Trac Fin digital stabilisers, Sea Bow jacuzzi, carbon fibre upgrades throughout, garage rain shower, LED lighting, satellite TV and communications, digital night vision camera, Armani Casa interior and trademark black and red exterior, the yacht is a veritable head turner.
Every year, Sunseeker Malta hosts and supports numerous visiting Sunseeker yachts that come to be registered under the Maltese flag and take advantage of the VAT leasing legislation.
The company also provides services for motor boats and super yachts to carry out warranty, winter works or servicing and repairs at recommended yacht yards.
Over the past three years, Malta has become increasingly popular as a servicing hub.
The company this year has brought over about 10 brand new yachts to be serviced, Mr Bristow-Holmes said.