Purchasing a luxury yacht – Why choose the Malta flag?

Malta has a long and expansive history with the maritime sector, being an archipelago situated in the heart of the Mediterranean. In recent decades, this has given rise to the development of a successful maritime registration sector. The Maltese flag is considered one of the most reputable in the world and its continuing presence on the Paris MOU White List guarantees a warm welcome in ports around the world. There are also many fiscal and VAT benefits to registering your luxury yacht under the Maltese flag.

Malta’s Marinas

While Malta may be a small country, it is home to several state-of-the-art and high-end yacht marinas. Those wishing to register their luxury yacht in Malta can rest assured that their asset will be moored in a safe, sheltered, and fully serviced location.

Grand Harbour Marina

Perhaps the most well-known marina on the island, Grand Harbour Marina has given berth to some of the world’s biggest and most luxurious vessels. Situated in the picturesque surroundings of the Three Cities, it is flanked by limestone battlements and a promenade of exclusive restaurants and bars. It is also served by many high-end service providers for all your yacht's ancillary needs.

Marina di Valletta

With 250 berths and located a stones’ throw from the Valletta City Gate, Marina di Valletta is a new, luxury, full-service yacht marina. Its presence has regenerated the local area and it offers stunning views over the city of Valletta and the ancient walls surrounding it. It also provides round-the-clock assistance, including security and concierge services.

Roland Marina

A small yacht marina located in Ta’ Xbiex, Roland Marina, offers berthing, chartering, and sales. It also provides berthing up to 32m, customs, bunkering, courier and concierge, repairs, laundry, and other ancillary vessel services.

Misda and Ta’ Xbiex Marina

The Msida and Ta’ Xbiex Marina is one of the most popular in the country and provides berthing for vessels up to 22m. It is popular due to its centralised location between Valletta and Sliema, and its sheltered conditions. It has over 700 berths available and offers all the typical services.

Portomaso Marina

Located at the North of the Grand Harbour, just next to the exclusive St Julians, Portomaso Marina is a small but sought after berthing spot. While it is smaller than some of its counterparts, it offers an exceptionally high standard of service and is preferred by those living in and around the elite Portomaso residential complex.

Manoel Island Marina

The Manoel Island Marina is great for larger vessels as it can accommodate yachts up to 80m in length. Situated in Gzira, between Valletta and Sliema and a part of the Grand Harbour, it provides mooring services and is within a short walk of all amenities.

Kalkara Marina

Situated in the picturesque fishing village of Kalkara, the Kalkara Marina forms a part of the expansive Grand Harbour area. Levels of security are high, including electronically controlled gates, on-site security teams, and CCTV. All regular services, including concierge, repairs, and restocking, are available.

The procedure

Registering a yacht or super-yacht under the Maltese flag is available to all Maltese and EU citizens, non-EU entities, or companies incorporated in Malta or another EU member state. At CSB Group, we recommend that a Maltese company is the most appropriate vehicle for yacht registration.

You will then need to compile several documents, including the builder's certificate (if new), bill of sale, a survey certificate from a recognised surveyor, IDT for vessels of more than 24 metres, signed carving and marking note, and the deletion certificate from the previous registration.

Transport Malta will issue a provisional registration certificate within two to three days. This remains in force for up to six months while the process for permanent registration is underway.

It is advisable to work with CSB Group when registering under the Maltese flag. This makes the entire process much more straightforward and reduces the risk of any obstacles along the way. It also leaves you with more time to focus on planning your sailing itinerary rather than dealing with paperwork.

Tax and VAT benefits of registering in Malta

When you register your yacht in Malta, you can benefit from several favourable taxation provisions. These include:

• No income tax payable on a Maltese super-yacht owned by a Maltese company. Rather an annual tonnage tax is payable to Transport Malta based on the vessel’s net tonnage rather than earnings.
• In cases where a vessel does not qualify, income tax can be as little as 5% through Malta’s full tax imputation system.
• A high number of double taxation treaties with EU and non-EU countries;
• VAT exemption for commercial vessels for maintenance costs, fuelling, necessary supplies if the place of supply is in Malta and other criteria are met;
• There is no tax payable for a Maltese shipping company purchasing a yacht for commercial purposes. While 18% VAT will be paid upon import, this can be reclaimed. A further VAT deferment scheme is also available, subject to certain criteria;
• For yachts owned by a Maltese company, there is an opportunity to reduce the VAT impact when vessels are leased, resulting in VAT savings of up to nearly 13%.

Benefits of flying the Malta flag on your yacht

Aside from a favourable tax and VAT system, there are other benefits to raising the Maltese flag on your luxury yacht. These include:

• The ability to register a yacht with a company or other constituted body with no restrictions on nationality;
• A responsive regulator;
• Low-cost incorporation, registration, and other associated costs;
• The ability to register vessels currently under construction;
• A selection of high-end and functional marina’s around the island;
• No restrictions on selling or mortgaging a Maltese registered yacht;
• A well known and highly respected flag state that receives a warm welcome in all ports;
• Malta’s location in the centre of the Mediterranean;
• No restrictions on the nationality of crew, master, or officers on Maltese vessels;
• No trading restrictions on Maltese vessels;
• Registration in a stable, prosperous, fully-fledged EU Member State.

CSB Group can assist with all matters relating to buying, selling, leasing, and registering your yacht, superyacht, or another kind of vessel. From company incorporation to drafting and collating documents and taking care of the application process for you, our team is ready to help. Contact us today at [email protected] for more information or any assistance from our experts.