Seaside: Every year, before the start of the season, authorities publish new tax regulations. Any news for this season?
Lot’s of good news indeed for the yachting industry.
Malta has introduced a new modified VAT rate of 12% which applies to yacht charters starting in Malta. Effective from 1 January, 2024, this reduced rate is subject to specific conditions including formal charter agreements and a maximum combined duration by the same charterer of 35 days within a 12-month period.
Greece has finally introduced the "e-Charter Permission" system, allowing luxury non-Greek-flagged yachts to operate in Greek waters without the previous requirement of a Greek business branch. The permit, applicable to EU and non-EU-flagged yachts over 35 m with specific hull compositions, enables charters within Greek borders for up to 21 days annually, subject to meeting certain criteria. Yachts under 35 m or those opting out of the day limit must still follow the traditional process of setting up a Greek branch and applying for a charter license.
After France, Monaco and Spain (with some restrictions due to the matriculation tax exemption in Spain), Croatia has now also officially approved the Yacht Engaged in Trade program.
Seaside: Any news from the major yachting fag states?
We can think mainly of Malta and the Cayman Islands.
Effective from April 1st, 2024 the Merchant Shipping Directorate has introduced the Small Commercial Yacht Code (sCYC) applicable to commercial yachts < 24 m. The aim of the code is to better serve the needs of this growing segment by optimising the regulatory regime to the particular demands and technologies of this market.
The Cayman Island Shipping Registry (CISR) also introduced a new Merchant Shipping Act 2024 (MSA 2024), pioneering crew contracts for private yachts. This move standardizes crew members' rights and terms, aligning with regulations for commercial yacht crews, covering aspects such as wages, repatriation, medical expenses, leave, and notice periods.
Seaside: Great news indeed. Changing subject is sustainability still a key word for the yachting industry?
Sustainability remains a paramount concern in the yachting industry, emphasized by the collective commitment to a greener future.
With sustainability gaining prominence in consumer consciousness, the issue of greenwashing has also emerged in the yachting sector. To address this, the European Union has proposed the adoption of the Green Claims Directive on 22 March 2023.
Once adopted this will significantly impact how superyacht companies communicate about their environmental practices. Companies will have to provide evidence supporting their sustainability assertions, fostering transparency and consumer confidence. These stricter regulations aim to prevent reputational damage and enhance consumer protection against misleading advertising. Professionals in the sector may need therefore to educate themselves on legal risks and seek third-party verification of sustainability claims to navigate the evolving regulatory landscape effectively.
Let’s see what the future reserves as it needs to be greener, more transparent and ethical.
05/2024
This article was originally published on Seaside Magazine. The information is for general purposes only and should not be relied upon as a legal or tax advice. Specific guidance should always be obtained on ownership structuring, registration and operation of a yacht.
For more information, please contact:
Janet Xanthopoulos
Director and Head of Yacht & Jet Department
j.xanthopoulos@rosemont-yacht.com