Latest fiscal amendments with impact on the superyacht chartering season 2021 in the Mediterranean

The below is a summary of the most relevant fiscal amendments with effect on the superyacht chartering activity in the Mediterranean in 2021:

France: The new situation for summer season 2021 is that full VAT rate – 20% – will be charged for time spent in EU waters. Only the part of the journey taking place in international waters will be exempt from VAT.

Italy: As in France, the new law will be applicable to all charters starting in Italy and/or outside EU territory and entering into Italy will be subject to ordinary VAT rate of 22%, except on the part of the journey taking place in international waters, which will be exempt from VAT.

Spain: Charters starting in Spain are subject to 21% without any reductions. On the other hand charters starting outside the EU VAT area are subject to Spanish VAT for the part of the journey taking place in Spain VAT territory, however from January 1st 2021, they will be exempt of VAT if starting in any of the following Spanish special territories: Melilla, Ceuta and the Canary Islands.

Greece: Greek standard VAT rate is 24%, with a potential reduction on the part of the journey taking place in international waters. Yachts without a Greek charter license are obliged to start and end the charter outside Greece. There are still practical problems in order to enforce collection of VAT. At the moment there are some issues with UK-VAT paid yachts, as it is not clear if they will continue to hold free circulation status.

Croatia: The situation in Croatia remains steady without relevant changes and a standard VAT rate of 13%. Note that British-flagged yachts <24m are no longer eligible to receive a charter license.

Turkey: Foreign flagged yachts can cruise between Turkish ports provided guests do not embark in Turkey.  Turkey authorities apply a stamp duty of 30€ x LOA in order to allow chartering operations.

Malta: After closing of the EU Commission infringement procedure against Malta, the jurisdiction continues to be the leading superyacht registry in the Mediterranean.

Reproduced with kind permission, by Alex Chumillas Amat, Marine & Aviation Tax Consultant with Tax Marine consultancy, Barcelona. Contact:  t. +34 934 442 137 / m. +34 667 663 521 / e. info@taxmarine.com