Yacht registration and Fiscal Aspects
When you purchase a vessel, it is very important to decide on the best suitable country to register your yacht, in fact it is the most important aspect of the ownership process.
Do you prefer a private or company ownership? With a commercial registration you may charter the yacht. With a 30% market share, and recognized status as the world’s leading country for commercial yacht yards and equipment suppliers, it makes good sense for the Netherlands also to offer a premium registration solution for commercial yacht owners.
The Dutch flag offers a one-stop shop for construction, registration and crewing of commercial yachts. A clear operating model is in place and owners (and their representatives) can rest assured that their yacht is in the safe hands of professionals.
Super yachts exploited on a commercial basis in The Netherlands are registered as CCV meaning Commercial Charter Vessel.
Malta prides itself of a sophisticated network of English speaking professionals coming from different areas such as legal, accounting, VAT and audit professionals with a deep knowledge and understanding of the various aspects of the maritime industry.
Superyachts Europe have built a good relationship with the CSB Group in Malta, which is uniquely able to offer an integrated service for our clients’ yachting requirements. As a one-stop shop, CSB Group is one of the Malta-based specialists in yacht services with
the necessary expertise to handle a variety of services including the registration under the Malta Flag. Under the Malta Flag a yacht may be registered as a Private yacht or a Commercial yacht.
There also are popular registrations for flags under, Marshall Islands, Delaware (USA), Poland (EU) and Panama.
The Red Ensign Group (REG) is a group of British shipping registers, which are operated by the UK:
the Crown Dependencies (Isle of Man, Guernsey and Jersey)
UK Overseas Territories (Anguilla, Bermuda, British Virgin Islands; Cayman Islands, Falkland Islands, Gibraltar; Montserrat, St Helena, Turks & Caicos Islands). These countries have acceptable safety regulations for travel in EU countries, while also having more attractive tax structures than the UK. In fact, company tax is set at 0%.
If you are not a European citizen better to setup a UK LTD that will hold the ownership of your yacht. The UK LTD is owned by you and as it is a European entity it can also register a vessel in Holland. As the LTD is only used for holding ownership of your vessel there will be no taxes due.
Those who wish to spend time in European Union waters, as vessels owned or used by EU residents are subject to the EU’s Value Added Tax (VAT). Private yacht registration with a non-EU flag allows an owner to operate under a “temporary importation structure” which allows for 18 months free of these taxes or customs duties. After the 18 months are over, the boat owner can re-apply for this status.
Where to register your yacht offshore: The Ultimate Guide is an interesting white paper by Andrew Henderson, Nomad Capitalist Lifestyle.