Malta's Yacht Leasing Structure

Malta has enjoyed an excellent reputation as an international maritime hub. The Maltese jurisdiction has become attractive for yachts and super yacht owners, or those seeking to bring their yachts into EU waters.

Strategically located in the center of the Mediterranean, Malta has a number of excellent and affordable maritime and yachting services at the yacht owner’s disposal as well as a number of beneficial incentives introduced by the Maltese authorities.

Apart from the benefits of flying the Maltese flag, Malta provides a number of other significant benefits which luxury yachts owners should take into consideration such as the Maltese Leasing Structure which has been introduced by the Maltese VAT department in 2003 and proven to be very successful.

The Yacht must come to Malta, at the beginning and at the end of the lease. The yacht may be registered under the Malta flag or any other flag in the name of the Maltese leasing company.

If importation of the yacht may be necessary, this can be handled by our corporate department. We also operate an office in Tunisia in case we need to export the yacht prior to arrival into Malta. The leasing agreement shall be between a Maltese company and any Maltese or foreign person or company.

Prior approval shall be sought in writing from the Commissioner of VAT. The VAT Department confirms application by means of a letter accepting that a Malta yacht leasing agreement is in place.

Once the first VAT payment is completed, a second letter will be issued by the VAT Department, confirming that VAT is being accounted for in Malta. VAT payments should follow thereafter during the normal course of business of the company.

  • The lease installments shall be payable every month
  • The lessor is to make a reasonable profit from the leasing agreement over and above the value of the boat.

A VAT paid certificate will be issued once the yacht is sold by the lessor at its market value.

  • S&D Yachts assisted some of the largest super yachts owners, we are able to draw on our experience to offer clients holistic and bespoke services tailored to their specific needs.
  • Our specialist team can provide tax efficient solutions for individuals and companies looking to either purchase a yacht or set up a yachting operation based in Malta.