Click here to view the June newsletter
If you’re looking into owning a yacht and want to do it in a way that’s smart, efficient, and compliant within the EU, Malta has a lot going for it. Thanks to its favorable laws, strong maritime reputation, and friendly tax treatment, Malta remains a top choice for yacht registration and ownership.
Let’s break down how a well-structured Maltese setup – using a company, trust, or private foundation – can give you more control, better tax efficiency, and long-term protection for your asset.
Why Malta, Anyway?
Malta ticks all the right boxes when it comes to yacht ownership:
- It’s in the EU (so you’re covered for EU compliance),
- Has a solid international maritime registry,
- Offers a competitive corporate tax system,
- Allows for VAT-efficient leasing arrangements,
- And provides flexible structures like trusts and private foundations for added protection.
Put it all together, and you’ve got a smooth, reliable framework that works well for both private and business-minded yacht owners.
Start with the Basics: Malta LTD Company
The setup typically begins with a Limited liability company (LTD). This company:
- Can officially own a yacht,
- Can lease a yacht to a third party
- Is VAT-registered in Malta.
To meet local substance requirements, a Malta resident director is usually appointed – someone who helps keep day-to-day management grounded in Malta.
LTD Company – the most popular choice, is ideal for pleasure yacht ownership. It offers liability protection and tax efficiency, with income taxed at a standard corporate rate of 35%. However, Malta’s full imputation system allows for significant tax refunds, effectively lowering the tax burden to 5%. The setup process is straightforward and cost-effective, and companies can be 100% foreign-owned. Simultaneously with registering the yacht, we can put your yacht under Malta Flag.
VAT-Efficient Leasing Model: Based on Actual Use
Here’s where it gets really interesting. According to the guidelines, published
on 12/03/2020, Malta allows yacht owners to apply VAT only to the time the yacht is used within EU waters. This means:
- 18% VAT is charged, but only on the part of the lease tied to time spent in the EU.
- No VAT on time spent in international or non-EU waters.
- Usage is tracked using onboard technology (think GPS and marine logs).
- VAT is calculated quarterly and paid in full , and after overpayments are adjusted by seeing proportion between EU and non EU use.
- The lease can be paused or ended anytime, giving you total flexibility.
If your yacht spends a lot of time outside EU territory, the savings here can really add up.
How It Works: A Simple Step-by-Step
- Set up a Malta shipping company with VAT registration.
- Buy a pleasure yacht through that company or transfer existing yacht to this company.
- Lease it out – typically it is leased to the UBO or a family member – for 3 to 15 years.
- Do paperwork and hand over the yacht in Malta.
- Pay lease with added VAT
- Track where the yacht goes (important for VAT reporting).
- Adjust VAT in the 3rd return based on real-world travel data.
- Pay VAT quaterly with actual EU/Non-EU ratio in all subsequent VAT returns
Want Extra Protection? Use a Trust or Foundation
If you’re thinking long-term – protecting your asset, keeping it out of personal liability, or planning inheritance – you can own the Malta shipping company through either a:
Malta Trust
- A licensed trustee holds the company shares on behalf of beneficiaries.
- Offers confidentiality and flexibility – great for family planning.
Malta Private Foundation
- Ideal for holding assets across generations or shielding wealth from risk.
- You can define exactly how it operates through its founding documents.
Malta trusts are excellent for private yacht ownership with an emphasis on estate planning. Trusts allow the yacht to be held by trustees on behalf of beneficiaries, offering confidentiality, asset protection, and succession planning without probate. Trusts in Malta are governed by robust legislation modeled on UK common law and are highly respected in the global financial community.
Private Foundations combine features of both companies and trusts. They are often used for family-oriented yacht ownership or long-term asset management. A Malta private foundation is a separate legal entity with its own assets and can be particularly useful for multi-generational ownership, providing both control and protection.
Each structure can be tailored further based on the owner’s residency, use case (private vs. commercial), and financial goals. A local legal advisor is essential to structure ownership in a way that maximizes both compliance and tax efficiency. We are a message away!
Both options give you a clean separation between legal ownership and beneficial enjoyment – meaning you get the perks without all the direct exposure.
Malta’s Yacht Flag Strategy is a clever, fully legal way to own and enjoy a yacht – especially if you’re aiming for tax efficiency, flexibility, and peace of mind. With the right structure in place (company + leasing + trust/foundation), you can navigate EU rules with confidence and keep your maritime investment safe and efficient.
Thinking of buying a yacht or restructuring your current setup? Malta might just be the smoothest sailing route. We are here to help – Contact us now!
FAQ
Is Malta a good place to register a yacht?
Absolutely. Malta offers one of the most attractive maritime regimes in the EU, with tax-efficient structures and a highly respected flag.
What is the benefit of owning a yacht through a Maltese LTD?
An LTD offers limited liability, efficient taxation, and global recognition.
Can non-EU residents register a yacht in Malta?
Yes. Malta welcomes non-EU nationals and companies to register yachts, provided they comply with local maritime and tax requirements.
Is VAT payable on a Maltese registered yacht?
Yes, but Malta offers a VAT leasing scheme that can significantly reduce the effective VAT rate, depending on the yacht’s use.
How long does the whole procedure take?
With proper documentation, registration can be completed in as little as three weeks.
Malta combines legal sophistication, tax advantages, and geographic convenience to create a compelling case for yacht ownership. Whether you’re acquiring a vessel for private pleasure or charter business, Malta offers a streamlined, secure, and financially smart framework.
By choosing the right ownership structure – LTD, trust, or private foundation – you can experience the full freedom and luxury of yachting across Europe – without the usual bureaucratic hassle. It’s no wonder Malta is becoming the preferred port of call for yacht owners across the globe.
Want to learn more? Contact us now!
Click here to view the June newsletter
