Charter Yachting Hub Spain
Spain is a diverse and stunning destination for a yacht charter and offers long stretches of sun- drenched sand and world-renowned islands, and therefore is undoubtedly one of the best places in the Mediterranean to enjoy a yacht charter. The majority of luxury superyacht charters to this vibrant country centre on yachting hubs such as Barcelona and Marbella. With their modern marinas, these centres act as springboards to 1,660 kilometres of diverse coastline and the Balearic Islands. The islands continue to grow in stature among the superyacht set with their beach clubs, restaurants, nightlife and wellness offerings.
Chartering in Spain
If you are a yacht owner, and wish to charter in Spain or anywhere else in the EU, before you are able to offer your superyacht for charter, the yacht needs to be imported within the EU. This process requires the declaration of the yacht with a Customs Authority in one of the EU Member States. This involves the valuation of the yacht, payment of VAT, and any customs duties.
A Yacht Owning Company needs to appoint a Fiscal Representative in Spain to import the yacht in Spain. Said representative will handle the application for the Spanish VAT number, together with the administrative requirements, like the valuation of the yacht.
Once Customs formalities are completed the Yacht Owner needs to ensure his/her yacht is fit for charter. Chartering in Spain is possible for EU and Non-EU (e.g. Cayman Island, BVI, Marshall Island) flagged yachts, only if the yacht is registered with a commercial status.
Lastly and unlike other charter hotspots such as France or Italy, before a yacht can start its charter business in Spain a Charter License has to be obtained in the Spanish region where the charter will start. Most of our clients apply for both the Balearics and Barcelona license.
VAT and Tax
The VAT on the Charter income in Spain is 21% and no reduction is possible. If the charter will be done by an Non-EU Company (e.g. Cayman Island, BVI, Marshall Island) and this country does not have a double tax treaty with Spain, an additional withholding tax of 24% has to be deducted from the
Our Solution – Chartering in Spain might appear daunting but rewards are great, given the spectacular scenery and potential for charter business, especially for larger superyachts. We have worked with our Spanish counterparts to create a solution that allows us to handle the administrative burden for yacht owners.
What is the Mallorca-Model?
Our setup helps US, Canadian, Russian, Chinese and other non-EU commercial yacht owners wishing to charter in Spain and be tax compliant with the various rules in Spain, as well as licenses. The main advantage of the Mallorca-Model is that the setup avoids all the complexity for yacht owners for which we take full responsibility. We have set up a Charter Company intended to undertake the commercial operation of yachts in Spain and provide to the yacht owner:
• Legitimacy – as a professional, dedicated Charter company. The company will charter various yachts to third parties.
• Speed – the structure in place allows registration to take place quickly.
• Professionalism – as the company managers are used to handling a large number of transactions under the same structure.
• Tax – we will handle same and ensure VAT is collected and paid. No withholding tax will apply
© Vistra Group Holdings SA / October 2019 / 1 of 2 This document must be read in conjunction with our Legal and regulatory notice at http://www.vistra.com/notices. Licensed by the Malta Financial Services Authority
Company Registration No. C55184
Vistra Marine & Aviation Ltd.
Vistra is focused on giving private clients tailor-made solutions. Vistra Marine & Aviation Limited provides assistance with registration of company and yacht, asset administration, corporate structuring and services, accounting, payroll, yacht financing, customs, VAT, and tax compliance service. Our network includes lawyers, tax advisors, and yacht brokers, providing you with the support you need to purchase your yacht, setup a company and administering both the company and your yacht.
Contact: Dr Anthony Galea, Managing Director
Office address: Vistra Marine & Aviation Limited, 114 The Strand, Gzira GZR 1027, Malta
Telephone: +356 2258 6400
Mobile: +356 7961 8671
© Vistra Group Holdings SA / October 2019 / 2 of 2 This document must be read in conjunction with our Legal and regulatory notice at http://www.vistra.com/notices. Licensed by the Malta Financial Services Authority
Company Registration No. C55184