Yacht Registration in Malta
When someone decides to buy a yacht, one would think that the hardest part is choosing the vessel itself, yet in actual fact one of the most significant factors is deciding on where to register it. The Maltese ship registry is the largest registry in Europe and is the sixth largest in the world. This has not happened by chance, as it has been accomplished through the constant development, growth and regulation of the industry over the past decades. This has seen the perception of Malta being a grey listed jurisdiction change into it now being considered as a flag of excellence. Although size does matter, as it clearly portrays a sign of strength, it should not be the only reason one considers when making his decision. This article will attempt to briefly list the various reasons as to why the Malta flag should be the prime choice when registering a yacht.
Before delving into the nitty gritty of the different aspects, it is essential to lay out the facts on which to build up and form an idea. It is important to note that the registration of any pleasure yachts, which exceed the length of 6 metres, under the Maltese flag occur via a provisional registration, which is then followed by permanent registration. One of the key features of the Maltese registry is that the registration of certain vessels is dependent on their age. There are different levels of inspections which must take place when merchant ships exceeding 15 years of age are registered in Malta. Any ships over the age of 25 would require express permission by the authorities before it may be registered.
Under Maltese law, yachts may be owned and registered by any Maltese, EU/EEA or Swiss national, any Maltese, EU/EEA or Swiss company, or any third country national who enjoys legal personality to the satisfaction of the registrar of shipping. Maltese companies are considered to be good ownership vehicles for yachts. This is due to the fact that Maltese companies may be established by any person, whatever nationality, for the purpose of yacht ownership. The owner, through the company, must be clearly identifiable, and non-Maltese owners would have to appoint a Maltese liaison to deal with authorities. Once a yacht is registered in the Maltese registry there are no restrictions on the nationalities of the persons manning the yacht, and where the yacht may sail to.
One of the principle elements of the Maltese registry is that it is the registry of an EU Member State. This is a positive aspect since this ensures that the Maltese registry is being regulated via EU regulations and directives, and even guidelines issued by the EU Commission. This guarantees that both the registry and Maltese legislation are EU compliant.
Keeping to the topic of legislation, it is well known that Malta’s maritime legislation is thorough. It covers all aspects of shipping and is constantly amended and updated in order to keep with international standards and practices. The best example of this is Malta’s set of regulations in relation to yacht mortgages, which is modern and effective. It is important to note that as a member of IMO, and having ratified most of the main maritime conventions, Malta’s standards are high and well renowned.
Registering a yacht under the Maltese flag is quite fast, and consists of very low registration costs when compared to other jurisdictions. There are mainly two types of registration, private or commercial. For private registrations, the yacht in question would have to be a pleasure yacht with a minimum of 6 metres in length. This would not be able to carry passengers for any reward and can’t be used in trade. Commercial registration is utilised when listing yachts which are in commercial use and are not less than 15 metres in length but not longer than 24 metres, and superyachts in commercial use which are over 24 metres in length. There are also specific requirements relating to safety and pollution prevention when registering yachts.
The registration process itself is a very easy and straight forward procedure. Yachts are first registered provisionally under the Malta flag for a six month period. During this period all documentation must be finalised. The required documentation includes evidence of ownership of the yacht and of cancellation from the former registry. The owner of the yacht must also present the authorities with the necessary certificates in relation to manning, safety and pollution prevention. This period may sometimes be extended further, but may not exceed an aggregate of six months. These periods are then followed by permanent registration, with an annual registration fee being imposed upon the owner of the vessel.
Yacht registration in Malta is financially beneficial to both individuals and commercial companies operating yachts. This is due to the fact that these companies are exempt from income tax on any income generated through the operation of their yachts. This exemption is subject to the permanent registration of the yacht along with annual tonnage tax having been paid.
Apart from all the benefits previously mentioned, it may be noted that the administration, apart from being extremely efficient, is serious and performs the task at hand professionally. The team is reliable and qualified and is available on a 24-hour basis. One must also keep in mind that due to Malta’s size, and because of how the system is set up, it is easy to access both decision makers and key officials. These facts, coupled with the highly active participation of Maltese stakeholders in international shipping fora create a sterling registry for vessels to be registered under.
After having depicted the different scenarios and categories under which a yacht may be registered in Malta, it is no surprise that Malta’s ship registry is one of the largest in the world when it comes to yachts and super yachts. This number is increasing year by year as more and more high net worth individuals and yacht enthusiasts alike choose to register their vessel in Malta.
