Increase in Super Yachts Under the Malta Flag

Marked Increase in Super Yachts Registered Under the Malta Flag

The Malta Chamber of Commerce, via its Yachting Services Business Section has expressed satisfaction at the substantial increase that Malta has consistently registered within the yachting industry over the past years. The increase is not only restricted to registration and the choice of Malta as the flag of choice, but also to ‘value added’ services with a spill-over effect such as berthing, servicing and logistical services.

The Grand Harbour Marina which as of 2015, hosted 159 superyachts, another increase over the figures in 2014, has now further consolidated its position as a well-established player within the Mediterranean basis, with ever-increasing requests for berthing and related services.

As of February 2016, Transport Malta confirmed that the Malta flag had registered an increase of 10.8% over the previous year in the registration of super yachts of over 24 metres in length. The Malta flag is the largest in number worldwide in so far as commercial yachts over 24 metres in length are concerned. Length in excess of 24m also allows investors to consider the long-tested Yacht VAT leasing scheme, whereby crofts in excess of this length can benefit from an effective VAT rate of 5.4% (in lieu of the standard 18% VAT rate) – without distinction between sailing and motor yachts.

The reasons propelling such growth in the super yacht sector under the Malta flag may be summarised as follows:

• Yachts may be registered on behalf of legally constituted corporate bodies or entities irrespective of nationality.
• Low company formation, ship registration and tonnage tax costs.
• Possibility of registration for yachts that are being built or equipped.
• Attractive tax incentives to yachts and super yachts owners encouraging commercial operation.
• No restrictions on the sale or mortgaging of Maltese registered yachts and super yachts.