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Yachting Solutions

The island offers a robust legal and tax framework for yacht ownership, registration, chartering, and management, supported by marinas, refit facilities, and more. With extensive experience in the sector, we provide tailored solutions to meet the unique needs of yacht owners, operators, managers, and advisors.

Malta has established itself as one of the world’s leading yachting hubs, recognised for its highly regarded flag, strategic Mediterranean location, and extensive maritime infrastructure.

Industry Services

With extensive experience in the sector, we provide tailored solutions to meet the unique needs of yacht owners, operators, managers, and advisors. From VAT structuring to customs importation, tax and VAT planning, crew payroll, and beyond, we ensure that every aspect is managed with clarity, precision, and full regulatory compliance.

Customs Importation

The European Customs Code provides that a yacht must be in free circulation in the European Union in order to be enjoyed and/ or operated. A yacht owner may achieve this status through various routes, namely:

  • Importation with VAT Deferral – Applied by commercial yachts
  • Full Importation – Applied by pleasure yachts wish to pay 18% VAT and obtain the VAT-paid status
  • Temporary Importation Procedures – Typically applied by Non-EU registered yachts.

Apart from having one of the lowest VAT rates in the EU, at 18%, Malta is popular for having an efficient and streamlined customs importation process which enables little downtime for the yacht in Malta.

At Zenco Partners, we provide end-to-end assistance throughout the entire process—from selecting the most suitable importation route to preparing the necessary documentation and liaising with the Malta Tax and Customs Administration. Our goal is to deliver a clear, compliant and efficient solution, giving yacht owners peace of mind and uninterrupted enjoyment of their vessel.

VAT Leasing Structures

In March 2020, Malta introduced guidelines outlining an attractive VAT deferral solution specifically for pleasure yachts intended for the lessee’s private use through a structured leasing arrangement.

To benefit from the structured leasing arrangement, the following key conditions must be met:

  • The lessor must be a Maltese-registered Limited Liability Company;
  • The lessor must be registered for VAT purposes in Malta;
  • A yacht leasing agreement must be in place between the lessor and the lessee outlining the terms and conditions of the lease;
  • The lessee must be a non-taxable person;
  • The pleasure boat must be actually put at the disposal of the customer in Malta.

Apart from the attractive yacht leasing solution, Malta also applied the ‘Use & Enjoyment’ principle, meaning that should the yacht be used outside EU territorial waters, a VAT adjustment in favour of the yacht owning entity may be granted.

Tax and VAT Advisory Services

We deliver bespoke tax and VAT advisory solutions tailored to specific industry-related transactions and ownership structures, whether for pleasure or commercial use.

With a deep understanding of both EU and Maltese legislation, we assist yacht owners, shipyards, dealers and their trusted advisors through the complexities of tax and VAT regulatory requirements. Our approach combines technical expertise with strategic insight, allowing our clients to move forward with confidence and regulatory peace of mind.

On-going VAT and Income Tax Compliance

We manage all aspects of your VAT and income tax compliance in Malta, ensuring timely submissions, accurate reporting, and full adherence to Maltese and EU regulations. Our proactive approach helps businesses and individuals maintain a compliant tax position while avoiding unnecessary administrative burdens.

On-going Accountancy

Our accountancy services in Malta cover the full financial cycle — from bookkeeping and management accounts to financial statement preparation. We ensure your accounting records remain accurate, transparent, and compliant, supporting informed decision-making and sustainable business growth.

On-going Payroll

We provide comprehensive payroll services in Malta, handling monthly salary processing, tax and social security contributions, and annual reporting. With a focus on accuracy, confidentiality, and compliance, we deliver a seamless payroll experience tailored to your business needs.

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Yachting FAQs

Why is Malta a popular jurisdiction for yacht ownership and registration?

Malta offers one of the largest yacht registries globally, backed by a robust legal framework, favourable tax system, and international recognition under the Maltese flag. Yacht owners benefit from VAT-efficient structures, a strategic Mediterranean location, and a credible EU flag recognised by stakeholders worldwide.

What is a yacht leasing structure in Malta?

A yacht leasing structure is an EU compliant, VAT-efficient solution that allows a Maltese yacht owning entity to lease a yacht to a private individual or entity, with the lessee only paying VAT on the lease instalments. This solution enables flexibility to the yacht owner as well as a substantial cash flow benefit whilst still achieving free-circulation status within the EU.

Does Malta apply the ‘Use & Enjoyment’ rules on chartering?

Yes, Malta applies the ‘Use & Enjoyment’ principles laid down in article 59a of Council Directive 2006/112/EC. If a short-term charter or yacht leasing structure commences from Malta, should the yacht be used and enjoyed outside EU territorial waters, a VAT adjustment in favour of the customer is applicable.

Does a yacht owner have to pay import VAT upon importation of a yacht through Malta?

Not necessarily, in instances where the yacht is intended to be leased out or operated commercially, the import VAT can be generally recovered by the importer. However, Malta offers an attractive VAT deferral solution whereby the importer may apply for a VAT Deferment with the VAT authorities, allowing the importer to defer payment of import VAT entirely, giving the importer a substantial cashflow benefit.

What VAT rate applies to short-term yacht chartering in Malta?

As from 1 January 2024, Malta introduced a reduced VAT rate of 12% on short-term charters of pleasure boats that commence from Malta, subject to certain conditions.

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